Buying a House on Universal Credit - Grace Period?

JMcc123

Hello,
I'm looking to finalise buying my first house at the end of June, I currently claim UC, mainly for support with rent and childcare costs, once we have moved my son will be surrounded by family who can support and will be starting school in September and my mortgage payments will be considerably lower than renting costs.
I'm just wondering if there is a grace period after the completion where UC will still support with my housing costs? There will be work needing doing on the house, and we're moving about an hour away from where we are now so it could take a few weeks to get things sorted in the house and to move everything, with being a single, full time working parent. Once the childcare and housing element are removed from my UC claim my wage will cancel out and UC.
I' sure I'd read somewhere that the government allow a 6 month grace period when you have equity to allow for this, but I'm struggling to locate it anywhere now!

It would only be for a matter of weeks, if anyone could advise it would be much appreciated 

Thanks x

sammyjammy

The six months grace period relates to where people have sold a house or received funds from and are purchasing another one but in the meantime they have funds in their bank account relating to the sale/purchase.
I would imagine as long as you are living in the rented property they may still cover the rent but you would be best to check.

dr0psofjupiter

The only grace period I'm aware of is where you've sold a property and your capital (over the 16k threshold) is disregarded for 6 months if it's to go towards a new property. I'm not aware of anything that will allow you to keep the housing element of UC in this way after buying your own property. I mean this kindly, if there is work needing to be done on the property that's up to you.
Do you mean you will be renting and liable for a mortgage at the same time, like a crossover?

JMcc123

dr0psofjupiter said:

The only grace period I'm aware of is where you've sold a property and your capital (over the 16k threshold) is disregarded for 6 months if it's to go towards a new property. I'm not aware of anything that will allow you to keep the housing element of UC in this way after buying your own property. I mean this kindly, if there is work needing to be done on the property that's up to you.
Do you mean you will be renting and liable for a mortgage at the same time, like a crossover?

Ah this makes much more sense, as to why I cant find it, I think I was following link after link to find this information quite late at night!
So I'm looking to close the sale on the house late June, but ideally staying where we are for a few more weeks, partly to keep my son in nursery so he's not missing out, but also to get any decorating done on the house, so I would own the house, but still be renting this one, yes, so a crossover period is probably a better way to put it.
 I understand it's not a given, and very much a luxury, I was curious more than anything.
I think my best bet may be to give UC a call, if it's not an option then at least I know.

Thank you 

calcotti

See Chapter H2: Capital disregards (publishing.service.gov.uk). Paragraph 2111

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.

Decorating will not be essential repairs but it does look as if you can have a disregard of the new home as capital under bullet point 1. I'm not clear if that also means you can still get the housing element.

JMcc123

calcotti said:

See Chapter H2: Capital disregards (publishing.service.gov.uk). Paragraph 2111

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.

Decorating will not be essential repairs but it does look as if you can have a disregard of the new home as capital under bullet point 1. I'm not clear if that also means you can still get the housing element.

Thanks so much, I'll give them a call tomorrow

unforeseen

Are you in a position to service a mortgage AND pay rent on the old house for a few weeks? 

JMcc123

unforeseen said:

Are you in a position to service a mortgage AND pay rent on the old house for a few weeks? 

Not really I'm hoping that my landlord may accept my deposit as my last months rent in a worst case scenario