Housing benefit for pensioner if they sell their house

Veedub69

Hi, my mother in law is considering selling her house and buying a static on a luxury site.

She receives the state pension and pip.

Her house is in a bad state of repair, needs a new roof and is made of wood. It's not worth much, maybe enough to buy a static new, a new car and mobility scooter. It's fully paid off. She would auction it as it has proved hard to sell in the past.

She will need to receive housing benefit to make this sustainable.

No private pension.

My question is if she was left with under £16K would this be considered a deprivation of assets and would she still be eligible for the ground rent or part of it from housing benefit?

Thanks.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6663624/housing-benefit-for-pensioner-if-they-sell-their-house

Is she buying the static caravan on a residential site authorised for permanent residence?

Will she buy the static caravan outright from the sale proceeds of her house?

She receives state pension and PIP. No private pension. Does she qualify for pension credit?

Veedub69

She could do if necessary or could be a 11 and half month site if allowed? Yes buy the static outright. If she has excess funds she can pay ground rent until the threshold.

Currently doesn't get pension credit as has some savings but not a large amount (under £30K).

She would get the best static she could from house sale.

She also can't access the top floor of her house currently.

sammyjammy

You need to consider that most sites will require a static of a certain number of years as a max, what will she do if and when she fails to meet that criteria? If she also has £30k in savings I'd say she's a fair way off from getting any means tested benefits.

Marcon

Not a pension question. Have asked for it to be moved to benefits board, which should get best chance of informed answers

Veedub69

https://forums.moneysavingexpert.com/discussion/comment/81958244#Comment_81958244

She would buy a new one, valid for 25 years on most sites, with her health conditions it is unlikely she will live longer.

The £30K (or £14K of it) would be used to top up the house sale money to buy the static. She will also need a mobility scooter (a valid purchase). She would also need some adaptions to the static. If there is any left over this would fund the ground rent until she met the £16K threshold.

She doesnt have a lot of options and is trapped in a house she can't access. She can't get Social Housing as owns her property (not fit for purpose) and will not have enough to buy a traditional house.

Is there a distinction on the type of site for the DWP? Ie 11.5 month as opposed to 12?

Veedub69

She will be 95 in 25 years if still with us and will need specialist care at that point, this would be the case wherever she lived.

LightFlare

she could sell the house and move in with you (after contributing to an upgrade)

No need for the tax payer to get involved

Veedub69

https://forums.moneysavingexpert.com/discussion/comment/81958323#Comment_81958323

You assume a lot, we rent a small house with a child. No spare bedroom and stairs she can't access. An opionated post, maybe you should think before you post?

She has paid her dues and is entitled to a good retirement.

It could also be argued that she would not be taking up a social housing place that could be used by someone else.

Veedub69

This would be seen as deprivation of assets even if it was feasible.

Keep_pedalling

Are we talking about a park home rather than a static caravan? Only the former are for permanent living.

Has she considered alternatives like selling up and renting in sheltered housing or assisted living which might be better for the long term.