Home ownership and UC

Giantdaz74

Hello, bit of a long one and hopefully someone can help.

A family member has been left money to buy the house they currently rent from an inheritance, there wont be anything left over as it was an agreed figure before the passing and they will put the rest to in their own saving which is only a small amount and not above the UC threshold

They will obviously have to inform UC that they have a change in housing which means they will lose the housing element.

Because they are also disabled they cannot work to gain more income and have all the disability benefits but are still struggling financially, even more so with having to use their small bit of savings.

Can anyone advise if there's anything else they can do to help them through please as they are worried they won't be able to afford bills/heating etc now?

Thanks

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6658263/home-ownership-and-uc

Start by preparing a detailed budget of current income and expenses - with housing benefit and with rent costs.

Then prepare another detailed budget with own home and no housing benefit. Allow for maintenance costs.

born_again

They should be in the same place financially. As housing should have been covering rent, that they are no longer paying.

Same as bills/heating should be the same. So losing that should have no effect.

Only extra expense will be maintenance of their home now.

sammyjammy

Are they attempting to repay debts?

beanielou

The only addition would be house maintenance which can be hefty. Building insurance.

Giantdaz74

https://forums.moneysavingexpert.com/discussion/comment/81911793#Comment_81911793

As stated they were using savings as income top up but have had to use all this on the purchase so don't have that to fall back on now.

noitsnotme

https://forums.moneysavingexpert.com/discussion/comment/81912346#Comment_81912346

Is buying the property a good idea? They may have many years of maintenance to pay for. What will they do if the boiler stops working and needs replacing for example? Or the roof needs replacing? At least while renting they don’t need to worry about finding money to pay for those sort of things.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81912346#Comment_81912346

Why do they want to buy a house?

If they cannot live on the income they have coming in why add the responsibility of further expenses incurred with ownership?

Cyclamen

I own my home and am unable to work due to disabilities.

For me the struggle with home maintenance and repairs costs along with building insurance (that a landlord usually covers) is worth it for the security of knowing no matter what happens i have a safe home that i cant be kicked out of, can do as i like, adapt it as I need and make it my own. I am also lucky in that to me it is far nicer than the one bed flats I was offered on social housing and i have an extra room which is useful for carers and all the mobility/ disability/ health equipment that comes with my diagnosis and labels. This isnt the right choice for everyone.

So I do understand the desire to own your home.

As for making money stretch that's where it gets difficult. In my head if things get really tricky my back up is the spare room and a lodger/ digs. If you have a parking space or garage you don't use some people rent them out.

Big repairs like new boilers do scare me.. mine is 13 years old now and i hope it goes for years yet but there are grants or loans available if i get stuck. The annual service is a cost a landlord would usually cover but I save for.
Adaptations due to health needs may be covered by a disabled facilities grants from council.
Roof repairs and unplanned repairs - I save when i can and have built up an emergency pot in a bank account that UC/ ESA know about its under their limits.
Always look for best prices, buy 'new to me' second hand, repair clothes and do alterations, flasks and packed lunches when possible to keep costs down.

I don't have the same budget as if i were living in social housing with repairs house repairs covered but for me it is worth it.

I make a new expenses file each April with cost of all my utility bills, food shop and tv subs along with medical purchases and my money coming in so I am very aware of how much money i have and where it goes.. that has been really helpful.

sheramber

Unfortunately, from what has been said the person concerned is already living beyond their means , using savings to prop up the benefits.

Buying a house using all savings and unable to live on benefit received does not bode well for the future, ut back on spending.unless they can c

What will they use to prop up the benefits when they have no savings.

How will they save for any future

Giantdaz74

To respond to a couple of comments, they had to buy the house as it was written in the will that that's what the money ws to be used for, i presume to give them financial/living security in the future.