Pension Credit & Property

ElectricBeagle

Good morning

I have a question relating to Pension Credit and Property ownership or Renting asked on behalf of an elderly disabled person.

They ask:

I recently inherited some money and as a consequence I gave up my pension credit and housing benefit and council tax benefit. I am currently living off my weekly state pension and I pay myself a weekly equivalent to the pension credit I used to receive. I also now pay my weekly rent in place of the housing benefit I received.

I was thinking about buying a small property in the countryside but I’m not sure if this is something I want to do or could cope with. I also would not be able to live by myself in the property and would need both physical and mental support. I have been advised that this may provide a home I could pass on and and income at the same time instead of just living off the money and having nothing to show at the end of it.

1. Where I to buy a small flat and move there and give up my current council flat and have less than £3000 savings would I be able to reclaim my pension credit? (All income being the same as before I inherited some money and my state pension amount remaining the same).

2. Where I to initially not live in the flat but rent it out to the council or a private tenant,  how would that affect my current council flat housing that I live in? Is there something I should be thinking about or be aware of that could affect my situation? Am I allowed to do that? I have lived in my council flat for 30 years. I don’t want to buy where I live as it is poorly maintained and I don’t think I could afford it.

3. If I rent it out and have a weekly income from it I understand that I could not claim Pension Credit (above certain limits of savings and income) but is it still ok to receive an income this way and then pay my rent and council tax with it for the flat where I live?

Thank you

calcotti

ElectricBeagle said:

I recently inherited some money and as a consequence I gave up my pension credit

To be clear - did they give up their benefits or were they told told that they were no longer entitled to anything!

ElectricBeagle said:

1. We’re I to buy a small flat and move there and give up my current council flat and have less than £3000 savings would I be able to reclaim my pension credit? 

If a property is bought and then occupied then the value of that property will be ignored as capital. 

The is nothing significant about £3000. There is no fixed savings limit for Pension Credit but there is a deduction if £1/week for each £500, or part thereof, over £10,000.

ElectricBeagle said:

2. Where I to initially not live in the flat but rent it out to the council or a private tenant,  how would that affect my current council flat housing that I live in? …

3. If I rent it out and have a weekly income from it I understand that I could not claim Pension Credit (above certain limits of savings and income) but is it still ok to receive an income this way and then pay my rent and council tax with it for the flat where I live?

If you buy a property and let it out then, because you not live in it, then the value of the property counts as capital.

There is nothing wrong with receiving rental income and you can use th3 income for whatever you need/wish.

freesha

I'm not sure you can always own a property elsewhere and still qualify for a council property (rightly so) - you'd need to check.

ElectricBeagle

calcotti said:

ElectricBeagle said:

I recently inherited some money and as a consequence I gave up my pension credit

To be clear - did they give up their benefits or were they told told that they were no longer entitled to anything!

Hello Calcotti. They were very aware that once they received their inheritance they would have to stop claiming Pension Credit and Housing Benefit. This was something that was checked and confirmed several times 6 months prior to receiving the inheritance into their bank account. On the day it was received they stopped claiming and informed all relevant parties.

calcotti

ElectricBeagle said: They were very aware that once they received their inheritance they would have to stop claiming Pension Credit and Housing Benefit.

Whether or not entitlement ends entirely depends on the amount of PC maximum
entitlement and the amount of the inheritance. The inheritance may well have resulted in no PC being payable (which would then undoubtedly end entitlement to HB).

MalMonroe

ElectricBeagle said:

Good morning

I have a question relating to Pension Credit and Property ownership or Renting asked on behalf of an elderly disabled person.

They ask:

I recently inherited some money and as a consequence I gave up my pension credit and housing benefit and council tax benefit. I am currently living off my weekly state pension and I pay myself a weekly equivalent to the pension credit I used to receive. I also now pay my weekly rent in place of the housing benefit I received.

I was thinking about buying a small property in the countryside but I’m not sure if this is something I want to do or could cope with. I also would not be able to live by myself in the property and would need both physical and mental support. I have been advised that this may provide a home I could pass on and and income at the same time instead of just living off the money and having nothing to show at the end of it.

1. Where I to buy a small flat and move there and give up my current council flat and have less than £3000 savings would I be able to reclaim my pension credit? (All income being the same as before I inherited some money and my state pension amount remaining the same).

2. Where I to initially not live in the flat but rent it out to the council or a private tenant,  how would that affect my current council flat housing that I live in? Is there something I should be thinking about or be aware of that could affect my situation? Am I allowed to do that? I have lived in my council flat for 30 years. I don’t want to buy where I live as it is poorly maintained and I don’t think I could afford it.

3. If I rent it out and have a weekly income from it I understand that I could not claim Pension Credit (above certain limits of savings and income) but is it still ok to receive an income this way and then pay my rent and council tax with it for the flat where I live?

Thank you

Hi, as freesha says above, it's doubtful whether the person would be able to own a property and also carry on renting from the council.

Have they thought of applying for Right to Buy their flat from the council?

That way the flat would be much cheaper and they would hopefully still have some disposable income each month.

Some councils like to keep some flats for people with mobility issues so not all are available to buy but it's worth making preliminary enquiries in this case as it might be possible that the person you are helping here would qualify for the property they are currently in.

If they have lived there a while, the discount they receive could be the maximum. Information in the following link -

https://www.gov.uk/right-to-buy-buying-your-council-home

Hope I've given some food for thought. 

xylophone

Have they thought of applying for Right to Buy their flat from the council?

The OP's friend says

I have lived in my council flat for 30 years. I don’t want to buy where I live as it is poorly maintained and I don’t think I could afford it.

Murphybear

How about sheltered housing?  There are a lot of housing associations that provide flats for the over 55s that can be bought or rented.  Many can be approached directly so you don’t have to go through the council.  Housing benefit is welcomed 

I live in one, we have individual flats and communal areas.  We have a court manager who is here Monday - Friday and he does regular checks on the vulnerable occupants.  

There are properties all over England but not the rest of the U.K.  There are usually some available but the ones in more popular areas such as the Isle of Wight or Bournemouth do have waiting lists.

PM me for further details if interested

luvchocolate

Murphybear said:

How about sheltered housing?  There are a lot of housing associations that provide flats for the over 55s that can be bought or rented.  Many can be approached directly so you don’t have to go through the council.  Housing benefit is welcomed 

I live in one, we have individual flats and communal areas.  We have a court manager who is here Monday - Friday and he does regular checks on the vulnerable occupants.  

There are properties all over England but not the rest of the U.K.  There are usually some available but the ones in more popular areas such as the Isle of Wight or Bournemouth do have waiting lists.

PM me for further details if interested

Definitely agree I've been in an over 55s flat with housing association for 6 years now. 
Perfect and we keep a check on each other..a proper little community. 
I pay £87 a week .really couldn't afford private rental plus this is more secure tenancy