Universal credit and savings

Hallim

Hello - I wonder if anyone can help with this query? My friend’s daughter is in the process of leaving her abusive partner. She has no source of income and can’t work right now due to anxiety issues. There are two young school age children. She has a 30,000 inheritance. Her mother can match this to buy the partner out of their house. Mother will become joint mortgage holder with her daughter, daughter sole proprietor. Daughter can just about survive on benefits and pay mortgage with mother helping a little while she gets back on her feet. I’ve spoken to CAB on their behalf just to get general info pointers. CAB flagged up that she could be seen as ‘getting rid’ of her savings to become eligible for benefits which would disqualify her for benefits. If this happened she can’t remain independent and would have to move in with mother. Partner won’t contemplate paying 1/2 mortgage on house he’s not living in (doesn’t recognise that this is about maintaining a stable home and school continuity for his children) - but will probably accept being bought out. This is much the safest thing to do as minimal involvement with him is important. Nobody has the money to get this sorted by the courts. 

Does anyone know the likelihood of this young woman being seen as ‘getting rid’ of savings to become eligible for benefits (thus disqualifying her for said benefits) - when she is actually using them to buy an abusive partner out of her children’s home so they can separate?
Or does anyone know where we can get a fairly definitive answer before she commits to going ahead? CAB won’t commit to any certainty as it appears to be a discretionary situation.
Many thanks 

calcotti

Using capital to purchase a property to own will not be treated as deprivation of capital. 
She will not be able to claim UC until the capital has gone (to at least than £16,000).

Hallim

Thank you so much 

peb

One point to note, no lender now will accept different proprietor and mortgagor that I know off, HSBC have pulled their product and Barclays have pulled their Guarantor loan. Get mortgage advice from a decent independent broker to be sure. Otherwise there could be a SDLT hit for mum if she owns other property

If daughter can't work with anxiety issues she may be able to claim contribution based ESA depending on her NI payments.