UC

asky5555

Hi, in regards to applying for UC. 

I live in a rental, not employed(4 months), savings under 5k. But I own a studio, make abit of profit(tenant for 1yr) because of this I didnt bother with UC. but im thinking of selling up. 

If I applied UC how would I navigate the form due to having a tenant and not started the process with estate agent.  Also the sale would go towards a new home.  

Bit of a tricky scenario, hope you can help Thanks

Rubyroobs

If the equity in your rental property is more than 16k you would not qualify for UC currently until the property is sold and that equity put into another home. 

Spoonie_Turtle

asky5555 said:

Hi, in regards to applying for UC. 

I live in a rental, not employed(4 months), savings under 5k. But I own a studio, make abit of profit(tenant for 1yr) because of this I didnt bother with UC. but im thinking of selling up. 

If I applied UC how would I navigate the form due to having a tenant and not started the process with estate agent.  Also the sale would go towards a new home.  

Bit of a tricky scenario, hope you can help Thanks

You can have the equity in the property disregarded if you are taking all reasonable steps to dispose of it - usually that means it is up for sale, for a realistic price.  I don't know if having a tenant would affect that.

Once sold you can have the proceeds disregarded for up to 6 months initially if you intend to use it to buy a home for yourself, but again you will need to prove you are actively looking for somewhere you could reasonably buy.

If however it's decided the equity and/or subsequently the proceeds won't be disregarded, you can appeal the decision but there's no guarantee it'll be revised in your favour and in the meantime you would not be eligible for UC.

Rent you receive from your tenant is counted as capital, not income.  But obviously the main issue is not being eligible if the equity in the property takes your savings above £16k if you're not actively trying to sell.