Another UC inheritance home buying deprivation sanaro

des147

Hi ive searched the internet concerning inheritance and home buying deprivation of assets rules and because these decisions seemed to be made on a case by case bases I just thought I would run through my scenario with you in order to get an idea if Im doing anything that would be fround upon. Currently I am on IR ESA support group since 2013 Neurological issue but by the time this plays out given current political landscapes I will be migrated to universal credit before February 2025 not 2028.

I will in the near future inherit my father's estate of approximately £90.000 I have a right to buy discount on my home of 27 years a semi detached 2 bedroom I can buy it for approx 40,000.
I have read experiences where UC decision makers have allowed concessions of three months to allow funds to enter claimants bank and purchase home disregarding it for the period untill home is purchased  and obviously not red flagging it as self deprivation. Is this common practice.?

This would leave me approx £50.000 after purchase and plan to make alot of much needed improvments on the home as it is 60yr old, I'm aware home improvements are allowed but my fear is having my claim stopped due to been over £16000 threshold.

The work will get underway as soon as I own the place on projects such as improving insulation efficiently rating from D TO C or even B. The house is what know  as a none standard construction steel framed BISF notorious bad for thermal retention really bad furthermore due to the steel frame and lack of cavity one can not use isulation to walls in traditional ways I have to opt for more expensive interior or exteria wall insulation probably 11k for external.

I plan to upgrade the old gas combi boiler to an air heat pump but unless the insulation is improved its performance of the heat pump is zero cost 7k

I Plan the have chimney stack removed all way to living room as it served a now redundant double fire place one in kitchen other in living room, one thick wall in the middle of tiny living room serving nothing funnel damp and cold air thro legally required vents into my home so it needs took out making 2 room into 1. Cost 4k

 I emphasize this is not for vanity or pritty design it is solely to up the  insulating performance of the house.

Then the old kitchen and bathroom which are currently 15yr old looking tired need replaced and 10k

I also plan but feel hesitant may seen as luxury to have solor panels fitted to reduce bills even more  cost 8k.

My questions are

I Will be l left with approximately £10,000 after this work and buying the home I just want to get feedback if any of this will be frowned upon.

Would my UC claim close soon after buying house due to having £50.000 for an unknown length of time untill the work is carried out and i pay contractors. which I hope will be matter of weeks. 

If UC is closed and I try to reclaim within weeks would my  section 19 migrated ESA support group status that transferred to UC LCWRAG be lost and have to do the WCA because id rather sleep in the out doors naked then go thro that again, 2 tribunerals victory's with 1 upper tier victory to keep my support status since 2013.

I will add that due to my neurological condition the cold weather makes my symptoms worse  in recent years before getting dementia my dad now in a home used to pay my gas bills and asked me to promise him id do the house make it nice and warm and not waste the money on silly needless things

elsien

 My understanding was that the disregard was for people who were selling a house and buying another. Or had inherited a property. Not for people who simply had a cash inheritance.

There is also the length of time it may take for the right to buy to go through. 

If your Father is in a care home, does he not have to use the money to pay towards his care?

poppy12345

The problem you have here is the inheritance will not be disregarded for any length of time. The only time capital can be disregarded is if you've recently sold the house you're living in and planning on buying another. 

For you, once the money goes into your bank, your UC will end. 

Edit to add, are you also aware that the discounts for Right to Buy (RTB) have also recently been reduced. See links. https://www.gov.uk/right-to-buy-buying-your-council-home/discounts

https://www.gov.uk/government/consultations/reforming-the-right-to-buy/reforming-the-right-to-buy#:~:text=We%20have%20reviewed%20the%20significantly,in%20which%20the%20tenant%20lives).

Spoonie_Turtle

In terms of LCWRA, you can open a claim for new-style ESA for just the credits (as your NI record won't entitle you to the payments) and to keep your LCWRA status.  You'd have to do this before your UC ends due to receiving the inheritance. 

I don't know the exact process for that, whether it is as simple as it sounds, but it's got to be better than having to go through the WCA again once reclaiming UC 

TELLIT01

The OP shouldn't underestimate the cost of maintaining the home they live in if they purchase it.  The advice generally is that purchasing a property when the only income is benefits is not a good idea.

The purchase and any necessary repairs or maintenance would not be classed as deprivation but, as others have said, there is no period where the inheritance is disregarded.  As soon as the inheritance is received the OP will have to inform UC and their benefits will cease.  That only applies if they have been migrated to UC by the time the inheritance is received.

How it will affect ESA depends on whether the ESA is partly or wholly Income Related.

tacpot12

All of the improvements to your future home sound reasonable from the perspective of a future benefits claim. The advice from spoonie_turtle to open a claim for new-style ESA for the NI credits and to maintian your LCWRA status is good advice. 

Your significant operative reason for spending the money is these ways are to ensure the property is fit for you to live it for many years to come. You do need to be careful about the costs of the work in the kitchen and bathroom. You need to be careful to spend only what can be justified - so no marble counter-tops!

TELLIT01's point about the cost of maintaining a home is a fair one. I think I would be looking to spend less overall on the renovation (£35-40K rather than £50K) to keep the money back for other maintenance. You should get a survey done on the property before you buy, and as the surveyor to comment particularly on the remaining lifespan of the roof.

The alternative to buying to is continue renting until you die. If you have any information about your life expectancy that might allow you to compare the two options of buying or keeping the £40K and using that to pay the rent, this would certainly help. However, continuing to rent would mean continuing to live in a draughty cold house that is expensive to heat, and where repairs are done at the council's pace rather than your own. It is likely that your landlord will eventually do some energy efficiency improvements to your home, but they will only do the bare minimum and will only address the kitchen and bathroom once they are beyond economic repair/maintenance. 

I'm biased, but I think that owning your own home is likely to be a good option, providing you keep enough back for future maintenance. You also have the option to sell the house in the future. 

elsien

Although I would be wondering if it would be possible to buy another more standard house or flat that doesn’t have all the expensive jobs that need doing. 

No idea on house prices where you are but it’s a trade-off between the discount you might get, how much you are planning to spend, and whether you could get better value elsewhere.

if it’s a non-standard construction, then selling it on may not be quite so easy

Time2count

Would it be possible to move into your dad's home rather than sell it if it has been better maintained? Of course that's assuming the inheritance is the house and not cash in the bank.

des147

I will answer some questions posed by responders. My fathers nursing fees are payed by state under a section within the mental health act it is a nursing home.

I was aware the right to buy landscape was under consultation but didn't realise it had been implemented in autumn budget I didn't see talk in media this cuts my discount to now capped at 22k been located Neast England  a futher consultation to reform right to buy is under way and one measure already spoken by Labours Raynor in a speech 2 days ago is it wont extend to housing associations canceling torys plan to extend right to buy to housing association. I have read the new constitution may calculate discount on a percentage to value scale and will not remove housing association right to acquire scheme which for my region is a £9000 discount. My concerns are right to buy was never eligible to housing associations and now never will, im a former council tenant whose home was transferred to a housing association while in tenancy  I have a 'preserved right to buy'. I don't know if this new consultation seeks to remove the preserved right to buy but currently after recent reform luckily it still exists.

Hitting upon buying a none standard construction BISF home these are lets say one of the better constructs they have a brick outer not prefab or metal look no different to other brick homes. The issue with selling them is due to mortgage lenders been tentative around them. Surveys have been carried out every 10 yrs last been 2023 in which bricks were removed to scope condition of steel support and informed they are in great nik. I would of course no doubt be advised to carry out a level 3 survey myself by estate agents solicitors ect before purchase.

Recent upgrades by housing association include double glazed windows doors, combi boiler, loft insulation, roof tiles, pvc eves all done 2010-12 the combi boiler is to be replaced 2025 if still in hands of housing association. The Association press release says 70million to improve 90% of stock in energy efficiency schemes lasting till 2026 however I inquire about the strategy for my home and the reply was new combi boiler 2025. Considering it would of been replaced anyway been 15 yr old this means nothing has been allocated to this property. Im in the process of quirying why this is it seems Im unlucky to be the 10% stock the schemes miss.

Yes I understand owning brings more responsibility financially my weekly benefits allowance is currently £160 and despite paying bedroom tax under occupancy of 1 bedroom I can and do save approx £50 weekly based on annual average used to be more but cost living is reducing saving forecast, ironically id save more but for not having to pay such high energy bills. I dont waste money only buy whats needed as needed no high tv subscription on social tarrif broadband.

The upgrades to home would leave me around the 14 to 16k savings some would clinically say convenient but just the way it is, benefit would reduce but would continue to be frougle in spending and keep savings for repairs ect ect. Your input makes me realise benefit would cease/claim close while the total of savings exceeds 16k my real concern is once the home purchased and upgrades carried out I will be unable to claim due to deprivation of assets was trying to get opinion to how people feel this would pan out.

I will investigate the claming of new style ESA before UC stops that keeps national insurance contributions flowing and any UC reclaim WCA at bay. Inotice to get New Style ESA one needs to have been an employee or self-employed and paid (or been credited with) National Insurance contributions, usually in the last 2 to 3 years.  I however have been an Income related ESA support group since 2013 not an employee or self employed so feel I will not qualify.

Thanks so far for the contributions of responses.