Second home and Universal Credit

Muttleythefrog

Harry50 said:

Hello, I am exactly in the same boat, I have two houses and one is on rent just about covering costs, houses do need upgrading but I don't have the funds. I can only work part time as I have two disabled children, also my partner mainly looks after the children but still requires both of us to care for them. I do not get UC because of the second home and am struggling to meet ends. I am thinking of selling the second home as this is the only way out, if I could work full time I could survive through but looking after two disabled children limits why work and my partners. I cant survive on part time work and I cannot work full time. I get no benefits only carers Allowance and DLA, and these just scratch the surface. The system is messed up for people like us, there needs to be a exception for such circumstances. 

Well.... we're not here to talk about benefit policy but being blunt... 'the system' would expect you to use the resources you have which sound significant (a second home) and I can't see the capital limit changing much any time soon and surely not into 6 figure sums and so selling may be the best option especially if it isn't making any reasonable profit... saves a lot of hassle of tenants etc too when you clearly already have a lot on your plate... and hopefully will provide the funds to upgrade your own home. Obviously if then your capital depleted to the point you became entitled to UC... 

DE_612183

Harry50 said:

Hello, I am exactly in the same boat, I have two houses and one is on rent just about covering costs, houses do need upgrading but I don't have the funds. I can only work part time as I have two disabled children, also my partner mainly looks after the children but still requires both of us to care for them. I do not get UC because of the second home and am struggling to meet ends. I am thinking of selling the second home as this is the only way out, if I could work full time I could survive through but looking after two disabled children limits why work and my partners. I cant survive on part time work and I cannot work full time. I get no benefits only carers Allowance and DLA, and these just scratch the surface. The system is messed up for people like us, there needs to be a exception for such circumstances. 

Perhaps when the benefits system was devised they didn't expect landlords with properties to be claiming.

If you have an asset ( the house ) which is not contributing to your income ( only just covering costs ) then you should dispose of it and realise any money that would help your situation.

I can see the point about having a second home - perhaps as a future investment for your children - but I don't think you can then moan that you don't get benefits as well...

peteuk

Sell the second home, pay off the mortgage and other debts.  Hopefully this will give you a little bit of savings.

Once this is less than £16K your can claim UC, if your struggling with payments then hopefully paying off the debt will easy the situation. 

Sounds simple, however if you’re actively selling the second home can be disregarded. Im not 100% sure of the ins and out, so Im sure someone with more knowledge will advise you further.