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owning property and claiming UC
anangel2020
Posts: 5 Forumite
Currently on full Universal Credit (have two kids).
Rather than buying a home (which is difficult in my area) I'm looking at collaborating with a relative to invest my 50k inheritance in property by buying two houses at £100k each and renting them out. The properties would be held in my name.
Will the capital in those houses be cancelled out by the mortgage or will they count as assets, ending my entitlement to benefits?
I've trawled through government guidance but still not clear where I stand.
I'd like concrete info rather than speculation if possible!
Rather than buying a home (which is difficult in my area) I'm looking at collaborating with a relative to invest my 50k inheritance in property by buying two houses at £100k each and renting them out. The properties would be held in my name.
Will the capital in those houses be cancelled out by the mortgage or will they count as assets, ending my entitlement to benefits?
I've trawled through government guidance but still not clear where I stand.
I'd like concrete info rather than speculation if possible!
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Comments
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1
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Can't see how that would work. If you inherit £50,000 your entitlement to UC will end. If you then use the capital to buy property but somehow end up with less than £16,000 of asset you would most likely be considered to have deprived yourself of capital and would be treated as if you still had it.
Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
No you cannot do this.1
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Thanks Kingfisherblue this link answers my question!0
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If you already have the £50,000 in your bank then you need to report the changes to DWP and any other means tested benefits you're claiming.
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