Universal Credit, buying a house with equity remaining

lottagelady

I wonder if you can possibly give me some advice about this scenario? I have looked online, but cannot really find any information.

My best friend has been disabled for around 15 years now, and sadly after Covid, her husband has become even more disabled than her following a severe stroke.

They have a large 5 bed home, which now the children have left home, is just far too big to manage and maintain when living on UC and disability benefits. There is no mortgage, and they both want to move closer to myself and my daughter who give them the most support.

They are due to complete next week, and have bought a brand new house which is smaller, but they will have quite a considerable amount of equity left. The intention is to use that money to make the house more 'disabled friendly,' they need to put power and light in the garage for safety and to charge scooters, make the garden disabled friendly as it will just be a patch of mud and a few slabs, put more suitable flooring in, all windows need curtains and blinds, add Solar PV Panels, and buy new furniture such as new smaller sofas and an electric bed.

Is there a time limit for this money to be spent/disregarded for UC purposes at all do you know please; are the things she would like to do 'okay', or could they be classed as 'deliberate deprivation of capital'?

She would also like to purchase a couple of weeks per year in a caravan for future use for holidays etc, would this be allowed too?

I would be grateful for any advice to pass to them. Thanks in advance ....

calcotti

The capital needs to be declared to UC. Otis for DWP to decide whether any disregards apply.

For the alterations a six month disregard may apply (or longer if a Decision Maker deems it reasonable).

https://www.legislation.gov.uk/uksi/2013/376/schedule/10

Capital to be disregarded
15 An amount received within the past 6 months that is to be used for making essential repairs or alterations to premises occupied or intended to be occupied as the person's home where that amount has been acquired by the person (whether by grant or loan or otherwise) on condition that it is used for that purpose.

 ....

i think that purchasing a couple of weeks per year may be fine but it will be to the DM to decide.

UC may suspend payment while they make a decision.

HillStreetBlues

If they paid for the caravan before the equity came though (even on credit card)  would that be ok?

lottagelady

Just heard buyer may be pulling out, due to complete next week next Tuesday! She's sold half her furniture too, his solicitor been fannying about or they would have exchanged!

It'll probably give them another stroke, how awful.

Thanks for the advice, can always use it again ...

TELLIT01

lottagelady said:

Just heard buyer may be pulling out, due to complete next week next Tuesday! She's sold half her furniture too, his solicitor been fannying about or they would have exchanged!

It'll probably give them another stroke, how awful.

Thanks for the advice, can always use it again ...

If completion is due next week presumably contracts have already been signed and exchanged.  On that basis I assume the prospective buyer will forfeit the deposit.  If your friend has also exchanged on the new property there could be all manner of issues.