Benefits eligibility while owning your home outright?

moneyGuruu

Hi all, I’ve recently made a lot of money from a lucky investment, the first thing I want to do is buy my parents a home.

My dad has a disability and has not worked from 25 years as a result. My mum looks after him full time. I want to buy them a nice small bungalow worth 150k-200k. They’re currently live in a 2 bed council house in a horrible area. They would give that up. However I’m worried if I buy this for them their benefits will stop. I’m not too sure exactly what benefits they get entirely, but I’m fairly sure they get Care allowance, housing support, income support and disability allowance. Would them owning a house (which they live in) mean they will no longer receive benefits? Do they also have to tell anyone if they own their own home? Is it classed as an asset/capital so it would effect their means tested benefits or since they are living there it would not count as one?

moneyGuruu

No idea why I said 25 years haha, my Dad has not worked for 12 years when his condition started.

tightauldgit

They would still get benefits as house doesnt count towards earnings/assets but they would obviously lose anything that was meant to pay rent on their council house.

moneyGuruu

Thanks for the reply, do they also need to declare the house or do the DWP automatically detect you owning a home?

Owain_Moneysaver

They will lose the rent element of housing benefit.

If the bungalow is a different council tax band than their council house, you/they will need to check council tax benefit.

If the house is yours, but you're not living in it, be aware of Capital Gains Tax implications. 

calcotti

moneyGuruu said:

Thanks for the reply, do they also need to declare the house or do the DWP automatically detect you owning a home?

They would need to inform DWP and local authority of their change of address and would need to close their Housing Benefit claim with local authority when they become homeowners.

Mojisola

moneyGuruu said:

Hi all, I’ve recently made a lot of money from a lucky investment, the first thing I want to do is buy my parents a home.

Is it going to be in their names or your name or all three of you?

68ComebackSpecial

moneyGuruu said:

Hi all, I’ve recently made a lot of money from a lucky investment, the first thing I want to do is buy my parents a home.

My dad has a disability and has not worked from 25 years as a result. My mum looks after him full time. I want to buy them a nice small bungalow worth 150k-200k. They’re currently live in a 2 bed council house in a horrible area. They would give that up. However I’m worried if I buy this for them their benefits will stop. I’m not too sure exactly what benefits they get entirely, but I’m fairly sure they get Care allowance, housing support, income support and disability allowance. Would them owning a house (which they live in) mean they will no longer receive benefits? Do they also have to tell anyone if they own their own home? Is it classed as an asset/capital so it would effect their means tested benefits or since they are living there it would not count as one?

Bizarre!

Two days ago it was your husband who was disabled, not your father, and it was you living in a Housing Association property and in receipt of benefits. Your son was planning on putting his home in your name (though remain living in it) in advance of his marriage in a misguided attempt to avoid losing a share of it in the event of a divorce. You wanted to know how it would affect your benefits.

So which is the real story?

https://forums.moneysavingexpert.com/discussion/6299364/owning-another-property-while-living-in-a-housing-association/p1

TELLIT01

68ComebackSpecial said:

Bizarre!

Two days ago it was your husband who was disabled, not your father, and it was you living in a Housing Association property and in receipt of benefits. Your son was planning on putting his home in your name (though remain living in it) in advance of his marriage in a misguided attempt to avoid losing a share of it in the event of a divorce. You wanted to know how it would affect your benefits.

So which is the real story?

https://forums.moneysavingexpert.com/discussion/6299364/owning-another-property-while-living-in-a-housing-association/p1

Most likely neither.

sheramber

three threads opened with variations on a theme.

seatbeltnoob

Some people want to post about best way to claim benefits and post hypothetical scenarios to illicit advice.

Reading the other thread, that is very dodgy. Transferring assets from son to themselves to stop the son paying out on divorce. 

The problem is they are on social housing, you can't get a council house while you own property yourself.

Op should just come clean and post their actual scenario to get accurate advice because a slight change in scenario has very different treatment with tax and benefits.

I dont know about capital gains, but I do know if you give up social housing it's very very difficult to get one back. If the divorce process has begun (couple have seperated but divorce has not been finalised) then any asset transfer is unlikely to work. Not forgetting the partner can put an injunction to prevent any property transfers.

Any question or advice asked which relates to doing one over a ex-spouse or the taxman isn't going to get serious answers on a public forum. That's what lawyers are for.