Universal Credit - asset issues

vicnell20

Hi All. My husbnd and I are both self employed and have had to suspend all trading due to Covid-19. We therefore have absolutely no income at the moment. I started to apply for Universal Credit, but when I got the the financial section, although our savings are below £5k, I do own a small flat, which we usually rent out. My husband and I live in privately rented accommodation, and we currently have no tenants in our flat as the last ones moved out at the end of Feb and we were decorating it ready for new tenants when this nightmare struck. Therefore, this flat is now costing me the mortgage payment each month, with no rental income. It appears that the value of the flat (about £130k) will mean we are not eligible for UC, despite the fact that it is a drain on our non-existant income, rather than an income source! How do I manage this? Any advice would be really appreciated as there appears to be no way to explain to UC folks that this "asset" is anything but at the moment, and is actually making our situation worse

Help please

Vicky

DBella22

In a similar boat here, did you receive any help? My partner purchased a property last Summer and up until lockdown was working on it as much as he could while working self employed. We have around £13k in "assets" however it is actually 0 - the house is costing us money to run and no further work can be done until he gets back to work, which he currently can't as he is deemed high risk due to a health condition. Did you have any resolution at all?

Vestraun

Can you sell the property?

DBella22

Don't know about OP but we cannot, the house was being gutted

calcotti

DBella22 said:

Don't know about OP but we cannot, the house was being gutted

If the intention is to live in the house and it is not habitable it may be possible to have it disregarded as capital.

Premises intended to be occupied

H2111  Premises that a person intends to occupy as their home shall be disregarded in calculating that person’s capital where the person

1. has acquired the premises within the last 6 months but has not yet taken up occupation or

2. is taking steps to obtain possession and they began those steps within the past 6 months or

3. is carrying out essential repairs or alterations in order to make the premises fit for occupation and these have been commenced within the last 6 months.

Jeremy535897

vicnell20 said:

Hi All. My husbnd and I are both self employed and have had to suspend all trading due to Covid-19. We therefore have absolutely no income at the moment. I started to apply for Universal Credit, but when I got the the financial section, although our savings are below £5k, I do own a small flat, which we usually rent out. My husband and I live in privately rented accommodation, and we currently have no tenants in our flat as the last ones moved out at the end of Feb and we were decorating it ready for new tenants when this nightmare struck. Therefore, this flat is now costing me the mortgage payment each month, with no rental income. It appears that the value of the flat (about £130k) will mean we are not eligible for UC, despite the fact that it is a drain on our non-existant income, rather than an income source! How do I manage this? Any advice would be really appreciated as there appears to be no way to explain to UC folks that this "asset" is anything but at the moment, and is actually making our situation worse

Help please

Vicky

I have heard that some decision makers at universal credit may accept that the value of such property at present can be deemed to be nil, but it is very much down to the individuals concerned. Others more versed in the mechanics of UC claims may be able to help.