Selling a house and Universal Credit 3 January at 3:26PM in Benefits & tax credits 3 replies 320 views

Single23

Dear all,

I am sorry if the question has been asked already but i could not find the correct answer.
I am a widow and live with my son who is disable, I am claiming UC at the moment, not housing part as i own the house freehold, I am in a process of selling the house and buying new one to meet the needs of my son, however the house i am buying there is a delay, and chances are i will be paid in my account proceeds of selling my current house, until they are able to sort out issues.

I will of course declare it once the funds are received on UC Journal, however will it effect my monthly payments? as i will only be receiving funds temporarily until i am able to purchase new house?

Thank you 

calcotti

There is a standard disregard for 6 months of money received from the sale of a property you live in if the proceeds are to be used to purchase a new property for you to live in. That six month period can be extended at the discretion of DWp. The correct process is for you to declare money received and explain to UC the circumstances. A Decision maker will then determine whether or not the disregard applies.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1085956/admh2.pdf

Amount to be used to purchase premises

H2119 Where a person has received an amount within the past 6 months which is to be used to purchase premises that the person intend to occupy as their home, that amount can be disregarded from the calculation of that person’s capital where it

1. is attributable to the proceeds of the sale of premises formerly occupied as their home or 

2. has been deposited with a housing association (see H2045) or

3. is a grant made to the person for the sole purpose of purchasing a home

Muttleythefrog

Calcotti is correct.... and actually I've just been through the process. I sold house, moved into temporary accommodation, and held the proceeds while on UC but had those proceeds disregarded for 6 months after request on grounds intended to use the monies to buy new property to live in.

Then got disregard extended for another 6 months when the seller of the property we were purchasing pulled out and we had to start again - UC actually treated this matter as a late (accepted in interest of natural justice) Reconsideration of decision request (and so technically they replaced the initial decision for 6 months with 12 months disregard).

Then once proceeds were sent to solicitor for our purchase I notified UC. Didn't have any problems except slow decision making (which caused some monthly payments to be delayed pending the decision) and I don't recall them asking for any evidence at any stage either.

Good luck!

Single23

Thank you both Calcotti and Muttleythrfrog for taking time to reply, Really appreciate your help.