Selling a house to get housing benefits

House1234

After some advise for a friend she has a house worth 60k paid 45k and has a loan of 10k which she owes 7k the house is only worth 60k at a push and wants to know if she sold it and gifted the money to her two sons could she then apply for housing benefit and rent a one bed flat as she is on own and has no job anymore
Or will the council etc want to know where the money has gone and will it cause any issues
Thanks

newbie1980

House1234 wrote: »

After some advise for a friend she has a house worth 60k paid 45k and has a loan of 10k which she owes 7k the house is only worth 60k at a push and wants to know if she sold it and gifted the money to her two sons could she then apply for housing benefit and rent a one bed flat as she is on own and has no job anymore
Or will the council etc want to know where the money has gone and will it cause any issues
Thanks

hi

it would be classed as deprivation of assets so would not be able to claim until below £16k i believe.
by Giving it away they would calculate how long it should have lasted and woulld not be able to claim until then i believe

Nick_C

If she deprives herself of capital in order to claim benefits, she will be treated as still having it.

How much is outstanding on her mortgage?

She will have to pay legal fees, estate agents fees, removal service. What will she be left with?

You can have some capital and still get housing benefit. If your friend can clear her debts and not have to worry about the cost of maintaining a house, it could be a sensible move.

She shouldn't give her capital away though.

AdrianC

House1234 wrote: »

After some advise for a friend she has a house worth 60k paid 45k and has a loan of 10k which she owes 7k the house is only worth 60k at a push and wants to know if she sold it and gifted the money to her two sons could she then apply for housing benefit and rent a one bed flat as she is on own and has no job anymore
Or will the council etc want to know where the money has gone and will it cause any issues
Thanks

Let me put that exact same situation a slightly different way...

She has £53k in equity in her home. If she sells it, and gives that money away, will that generosity be ignored to allow her to claim poverty for the purpose of claiming benefits?

Kentish_Dave

Does your friend choose to try to cheat the state in other ways?

I’ve a radical suggestion, could she get up today, get out there, and find work so that she’d not need to worry about benefits?

theartfullodger

Not the plan of a decent person, not patriotic.

bouicca21

School holidays already.

Davesnave

bouicca21 wrote: »

School holidays already.

I think the OP may have left school, looked at the difficulties of providing for his own independent living....and come up with a 'plan.'

FreeBear

Davesnave wrote: »

I think the OP may have left school, looked at the difficulties of providing for his own independent living....and come up with a 'plan.'

Find a rich footballer, marry him, and then live off his money. When the relationship turns sour, divorce and claim half his money & assets.

Caz3121

House1234 wrote: »

will the council etc want to know where the money has gone and will it cause any issues

of course they will...she cannot just give money away and then ask for the government to pay her rent. She should have enough equity from the property to pay her rent, bills etc for some time without needing assistance...she should read up on deprivation of capital

Davesnave

FreeBear wrote: »

Find a rich footballer, marry him, and then live off his money. When the relationship turns sour, divorce and claim half his money & assets.

The way things are going, that should even be possible for heterosexual men soon, though way too late for me, unless some soccer lioness wants a 'toy grandad!'