Gifted deposit for house whilst on universal credit

Hmaz_2

Thank you all for the advise.  Unfortunately there's likely to be a gap between selling my current home and buying the next (as my buyers want to be in by end of March but new house won't be ready in time). I'll have to stay with family for a while but from what I've read the money from the sale can be disregarded for upto 6 months if it is to be used to buy the next house and I don't spend a penny of it in the meantime.  I will speak to my solicitor and see if my mum can transfer the money straight to them rather than it coming to my account first

Spoonie_Turtle

Hmaz_2 said:

Thank you all for the advise.  Unfortunately there's likely to be a gap between selling my current home and buying the next (as my buyers want to be in by end of March but new house won't be ready in time). I'll have to stay with family for a while but from what I've read the money from the sale can be disregarded for upto 6 months if it is to be used to buy the next house and I don't spend a penny of it in the meantime.  I will speak to my solicitor and see if my mum can transfer the money straight to them rather than it coming to my account first

That's correct, but to be clear it is only applicable to proceeds from selling your house. 

So a gift for the deposit would not be disregarded, and if it would take your non-disregarded capital over £16,000 you would still need to receive that in the same assessment period as you spend it in order for it not to affect your UC.

Muttleythefrog

Hmaz_2 said:

Thank you all for the advise.  Unfortunately there's likely to be a gap between selling my current home and buying the next (as my buyers want to be in by end of March but new house won't be ready in time). I'll have to stay with family for a while but from what I've read the money from the sale can be disregarded for upto 6 months if it is to be used to buy the next house and I don't spend a penny of it in the meantime.  I will speak to my solicitor and see if my mum can transfer the money straight to them rather than it coming to my account first

Yes.. inform UC at the time and ask for the home sale proceeds to be disregarded as you intend to use the proceeds to purchase a property to live in - you'll obviously be informing them of temporary change of address too. They can disregard for further time in some circumstances like if after 6 months your purchase hasn't completed. I would keep paperwork evidence of any home purchase intentions in case they want to see proof of such.

In terms of the gifted deposit... see what the solicitor says... but if they indicate they want to do differently than you desire..i.e. get her to transfer the money to you first... then I would accept their protocol. Certainly don't argue about it as it may invite elevated suspicions of money laundering. I imagine the timing of that money movement will be very close to contract exchange or completion, and rapidly moved in/out, rather than any lingering in interim months but if not then as above it becomes an issue of capital held.