UC

wobblejelly

Hello,

Just wanted to ask, how does it work if you have a second property, that isn't making enough money per month to cover property costs? 

Can you still claim universal credit?

Thanks

poppy12345

If you’re not living in the property then any capital in it will affect UC entitlement. If it’s more than £16,000 then there’s no entitlement to UC. 

If you’re migrating from Tax credits then that capital is ignored for 12 months and you will be entitled to Transitional Protection. After that 12 months if you still have the capital then entitlement to UC will end. 

peteuk

Are you self employed? Is this your business or are you employed elsewhere?

Having a property that you do not live in, would normally be classed as Capital, and if you have over £16K in capital then you are not eligible to claim UC. 

Just because the rent on your second home isn't clearing the costs, isn’t grounds to claim UC, if you were to claim UC it would look at other aspects - are you married/co-living then it will be a joint claim and will take into account both your and your partners income.  It will not look at your out goings/expenses.

If your self employed then it might be slightly different so its important to clarify this, so that the right advice can be given. 

elsien

You sell the property?

NewBe

The capital value of the second property (market value minus any remaining mortgage) is used to calculate your total capital/savings. If the capital value is above £16,000 you are not entitled to UC (unless you get transitional protection for 12 months). Doesn't matter if you make a loss, or a penny, they still use the capital value of the property.