Retired, housing benefit and property abroad.

Gianbo

My wife and I live in council accommodation, receiving housing benefits, UC and PIP for my disability. I will retire next November on a state pension. My son would like to buy a small property in Spain where he can spend his family holidays. As he owns a property in the UK where he regularly resides with his wife, he would like to register the Spanish property in my wife and me's name once I'll get the pension. Would this property affect our housing benefit and how much? Thanks. Gianni

HillStreetBlues

It would depend of how much the property is worth. It's likely there would be no entitlement to HB or even pension credit.
TBH it's a terrible idea, as you're on income related benefits.

Alice_Holt

Gianbo said:

My wife and I live in council accommodation, receiving housing benefits, UC and PIP for my disability. I will retire next November on a state pension. My son would like to buy a small property in Spain where he can spend his family holidays. As he owns a property in the UK where he regularly resides with his wife, he would like to register the Spanish property in my wife and me's name once I'll get the pension. Would this property affect our housing benefit and how much? Thanks. Gianni

        Most likely.

       The value of any property owned overseas counts as capital for HB.  This may place you over the £16k limit for eligibility for HB.

   It may also end any eligibility for a potential Pension Credit claim.


    Why does he want to register you as the owner, even though he is buying the property ?
I'd be very wary of such an arrangement - does it make you legally responsible for Spanish property taxes ?

I'd suggest you get a legal opinion / advice before agreeing to this.

 

Keep_pedalling

What does he think he will achieve by doing this? 

sheramber

Avoiding paying SDLT?

Keep_pedalling

sheramber said:

Avoiding paying SDLT?

Not payable on an overseas property unless Spain has a similar tax.