Selling a home when on Universal Credit?

MoodyMand45

My friend is lucky enough to have a home she owns outright however she now wants to move to another area to be nearer her mother who is ill.

I told her not to do this unless she is working because i would assume it would be very messy in terms of capital limits and signing off Benefits but she she has already determined and she seems to think if she buys a another home for the same money she can go straight back onto universal credit due to having nothing left over from the sale.

Does anybody know if i can give her any advice because i am far from an expert on what her job coach is going to say when she sees him on Friday.

Muttleythefrog

She can remain on Universal Credit as the capital received can be disregarded (not counted as savings) for 6 months if she intends to use it to buy another property to live in. It can be disregarded for longer in some cases such as if after 6 months the purchase hasn't gone through yet. She should inform U/C in her journal at relevant time that she is selling her home and intending to buy another with the proceeds, update them when proceeds received (change in savings and ask for disregard) and then when spent and provide any other information they request at these stages.

If she were to sell and buy at the same time (same day as many do when transacting their home and buying another) then she probably would not need to report anything other than a change of address as the money may well not even ever hit her bank account. 

Job coach may be hit and miss in terms of advice... they may not understand the capital rules and such decision making. I have been through the process myself fairly recently.... sold my house (owned outright)... temporarily moved to parents... held the proceeds for 6 months and had a purchase fall through... got extension for another 6 months of capital disregard... bought new home (owned outright). In terms of U/C I found it quite painless (they never asked to see any evidence of anything and simply accepted my stated facts) although there was delay in taking decision of disregard that held up monthly statement/payment.

Here is the actual law
https://www.legislation.gov.uk/uksi/2013/376/schedule/10
(refer point 13(a))

MoodyMand45

Muttleythefrog said:

She can remain on Universal Credit and the capital received can be disregarded (not counted as savings) for 6 months if she intends to use it to buy another property to live in. It can be disregarded for longer in some cases such as if after 6 months the purchase hasn't gone through yet. She should inform U/C in her journal at relevant time that she is selling her home and intending to buy another with the proceeds, update them when proceeds received and then when spent and provide any other information they request at these stages.

If she were to sell and buy at the same time (same day as many do when transacting their home and buying another) then she probably would not need to report anything other than a change of address as the money may well not even ever hit her bank account. 

Job coach may be hit and miss in terms of advice... they may not understand the capital rules and such decision making. I have been through the process myself fairly recently.... sold my house (owned outright)... temporarily moved to parents... held the proceeds for 6 months and had a purchase fall through... got extension for another 6 months of capital disregard... bought new home (owned outright). In terms of U/C I found it quite painless (they never asked to see any evidence of anything and simply accepted my stated facts) although there was delay in taking decision of disregard that held up monthly statement/payment.

Here is the actual law
https://www.legislation.gov.uk/uksi/2013/376/schedule/10
(refer point 13(a))

This is great, Thanks!

peteuk

Also be aware of the £6 and £16K limits,  yes as above the amount will be disregarded for a period but if the new property is less then the current one sells for this may leave them with savings which will need reporting.