2nd property occupied by dependent child

SuseOrm

And of course it’s not £30,000 in equity because there’s capital gains tax to be paid Estate Agents fees and legal fees but I don’t suppose that counts for !!!!!!.  Grrrrrr

sheramber

Would she be able to claim housing benefit as a full time student?

marcia_

SuseOrm said:

It’s just frustrating because if I’d sold the property when I moved down south she would’ve been moved into rented accommodation and been entitled to housing benefit which would’ve cost universal credit a site more money and I would’ve just used the proceeds from the sale to go straight into my current property, had a reduced mortgage Everybody would’ve been far less financially stretched. 

And universal credit credits would’ve been paying out a lot more.  

 Most students cant claim benefits. 

SuseOrm

sheramber said:

Would she be able to claim housing benefit as a full time student?

Yes, she would because she was not at university. She was in full-time education completing her A levels.

SuseOrm

marcia_ said:

SuseOrm said:

It’s just frustrating because if I’d sold the property when I moved down south she would’ve been moved into rented accommodation and been entitled to housing benefit which would’ve cost universal credit a site more money and I would’ve just used the proceeds from the sale to go straight into my current property, had a reduced mortgage Everybody would’ve been far less financially stretched. 

And universal credit credits would’ve been paying out a lot more.  

 Most students cant claim benefits. 

She was still a baby she’d been completely screwed over by Covid. Didn’t get any GCSE at all. Had to go back and reset those, then had to take her levels again. She was a good two years behind everybody else through no fault of her own so yeah, she would’ve been perfectly entitled to support.

SuseOrm

kaMelo said:

It's based upon the rules. Second properties can be disregarded as capital if they meet certain criteria, being up for sale is one such criteria, an adult child living there is not. With equity of £24000 you would be ineligible for UC.

It also seems that there was a 12 month transition period moving from tax credits over to universal credits which would then put me into the time frames, That she was out of the house and the property was up for sale. 

I’m not sure if I’m grasping at straws here and hoping for a miracle but does that sound correct?

kaMelo

SuseOrm said:

kaMelo said:

It's based upon the rules. Second properties can be disregarded as capital if they meet certain criteria, being up for sale is one such criteria, an adult child living there is not. With equity of £24000 you would be ineligible for UC.

It also seems that there was a 12 month transition period moving from tax credits over to universal credits which would then put me into the time frames, That she was out of the house and the property was up for sale. 

I’m not sure if I’m grasping at straws here and hoping for a miracle but does that sound correct?

If you were living there when you migrated then no because it wouldn't be a second property on migration day. If you were not living in the property on migration day then yes, the equity you have in the property would be disregarded for twelve months.

I note you said it's been up for sale since September, the disregard for this is only six months. It can be extended but you'll have to put your case forward for this and they may well ask to see whatsteps you are taking to sell the property in a timely manner.

SuseOrm

If you were living there when you migrated then no because it wouldn't be a second property on migration day. If you were not living in the property on migration day then yes, the equity you have in the property would be disregarded for twelve months. 

I wasnt living there.  

Its being actively marketed and the price has been reduced,  it sold once and fell through in September.  

peteuk

SuseOrm said:

It’s just frustrating because if I’d sold the property when I moved down south she would’ve been moved into rented accommodation and been entitled to housing benefit which would’ve cost universal credit a site more money and I would’ve just used the proceeds from the sale to go straight into my current property, had a reduced mortgage Everybody would’ve been far less financially stretched. 

And universal credit credits would’ve been paying out a lot more.  

Sorry this is incorrect.  Had you sold it youd be sat on £30K of capital so therefore unless put into another mortgage or pay of debts then you wouldnt be able to claim UC until the capital was under £16K and therefore would have no way of claiming housing element of UC.

SuseOrm

peteuk said:

SuseOrm said:

It’s just frustrating because if I’d sold the property when I moved down south she would’ve been moved into rented accommodation and been entitled to housing benefit which would’ve cost universal credit a site more money and I would’ve just used the proceeds from the sale to go straight into my current property, had a reduced mortgage Everybody would’ve been far less financially stretched. 

And universal credit credits would’ve been paying out a lot more.  

Sorry this is incorrect.  Had you sold it youd be sat on £30K of capital so therefore unless put into another mortgage or pay of debts then you wouldnt be able to claim UC until the capital was under £16K and therefore would have no way of claiming housing element of UC.

I wouldnt be sat on £30k either, as I said capital gains tax, selling fees it’s nearer to 20 if that.  

And That is exactly what I would’ve done is put the money into the mortgage and paid the debts. 

And then she would’ve been entitled to claim the housing element of universal credits.  Which given other factors would’ve been a lot more than what they’re about to potentially take off me.