Property abroad and universal credit

Cefalu24

My brother and I inherited a property in Hungary a few years ago. This year, I put it on the market to try to sell it, but it will take a long time because of its location. The property is worth more than £16,000. I need to apply for Universal Credit for the time being and am unfamiliar with the process. My question is: does UC disregard the capital value indefinitely for UC purposes since the property is entirely occupied by a relative, as per DMG Chapter 29/29430?

LightFlare

Just to clarify:

1) you own 100% of the property
2) your bother lives there alone
3) does your brother pay you any rent

Cefalu24

Thanks. Point 1 and 2, yes. Point 3, no. 

Spoonie_Turtle

Your brother would have to have LCW (i.e. via claiming ESA or UC) or be of pension age to make the property be disregarded on the basis of him living there.

But as you're trying to sell it, it can be disregarded anyway as long as the Decision Maker is satisfied you're properly trying to sell it  (I can't recall off the top of my head what factors they look for, but it has to be clear you *are already* trying to sell it, not just intending to try to sell it at some point).

peteuk

Howling have you been claiming UC? when did you buy the house out right? When did you put it on the market?

If you were claiming UC and owned the house then this may mean an overpayment?

poppy12345

peteuk said:

Howling have you been claiming UC? 

OP said they need to apply so I took that as they don't yet claim it. 

Cefalu24 said:

 I need to apply for Universal Credit for the time being and am unfamiliar with the process. 

Cefalu24

Spoonie_Turtle said:

Your brother would have to have LCW (i.e. via claiming ESA or UC) or be of pension age to make the property be disregarded on the basis of him living there.

But as you're trying to sell it, it can be disregarded anyway as long as the Decision Maker is satisfied you're properly trying to sell it  (I can't recall off the top of my head what factors they look for, but it has to be clear you *are already* trying to sell it, not just intending to try to sell it at some point).

Thank you. My brother has had LCW, has never claimed benefits, and is still below pension age. I am actively trying to sell the property - it has been on the market for months. I will look into finding more information.

Cefalu24

peteuk said:

Howling have you been claiming UC? when did you buy the house out right? When did you put it on the market?

If you were claiming UC and owned the house then this may mean an overpayment?

I am not currently claiming UC and have yet to apply for it. I was hoping to receive some guidance here first before making an application. I bought the house outright two and a half years ago, and it has been on the market since the end of August.

poppy12345

Cefalu24 said:

Spoonie_Turtle said:

Your brother would have to have LCW (i.e. via claiming ESA or UC) or be of pension age to make the property be disregarded on the basis of him living there.

But as you're trying to sell it, it can be disregarded anyway as long as the Decision Maker is satisfied you're properly trying to sell it  (I can't recall off the top of my head what factors they look for, but it has to be clear you *are already* trying to sell it, not just intending to try to sell it at some point).

 My brother has had LCW, has never claimed benefits, 

You said the property is in Hungary and LCW applied to benefits in the UK. You need to be assessed as having this by claiming a benefit such as Universal Credit. For this reason LCW wouldn't apply to him for the property to be disregarded.  

A property that's up for sale can be disregarded for 6 months, sometimes longer but as advised, you would need proof that it's up for sale. A decision maker will then need to disregard it. 

TELLIT01

DWP may need to see information about the efforts to sell.  Simply putting the house on the market months ago and leaving it with an agent may not be acceptable.  There needs to be active attempts to sell, possibly including reducing the price if it isn't seeing interest at the original price.

Cefalu24

TELLIT01 said:

DWP may need to see information about the efforts to sell.  Simply putting the house on the market months ago and leaving it with an agent may not be acceptable.  There needs to be active attempts to sell, possibly including reducing the price if it isn't seeing interest at the original price.

I first advertised it at the end of August, then took the advert down to reduce the price and give it a few weeks break. I now have a new advert up, which has been live since the beginning of November. I've evidence of both. Actually, I have been here for a few months doing all the renovation work on the house to improve its saleability so that I can buy a house to live in the UK. I am returning to the UK this month. I am about to hand it over to an estate agent. Regarding DM guide 29584, is asking for the date I contacted the estate agent?