Proof of moving house, overlap renting to buying

weirdtimes

This is complicated...

I'm in the process of buying a small property, using inherited money and a very small mortgage. (Should have completed a couple of weeks ago, goodness knows why they are being so slow as they wanted a quick sale!)

I'm currently renting and living on new style ESA and PIP.

I am aware that my benefit entitlement may go up once I've moved, provided buying the property isn't counted as deprivation of capital. There are no guarantees of this, I know. But mentioning as it is relevant to my main question!

The property I'm buying is empty, no chain, and have gone through the various stages so could all move very quickly now. Basically, there is going to be an overlap where I own it but am still renting/living here.

The overlap may be quite a long time as I am also almost 34 weeks pregnant. So obviously I don't want to give notice here and have the baby come then suddenly need to stay longer or move within days of giving birth! On the other hand if the baby isn't early there is still time for the purchase to complete and me to move in. Basically I need to keep the rented property going a bit longer so my moving date can be very flexible.

The issue is, how do I prove to the DWP and council when I have actually moved, if I am temporarily paying for both properties? (IF there is a benefit increase, this would only happen after moving, as bought property would count as capital until then.) Obviously bills and so on won't prove anything. In fact that's another worry! - if I move out of a rented property but have paid several weeks extra rent/council tax, will utilities companies believe I have moved and am not liable for any more bills? (I can see my landlord using tons of water and power as he will be stripping the place down and rebuilding!)

[I know my situation is ludicrous, I'm such a sensible planning person in general, none of this was supposed to happen like this.]

Short version:

1. How to prove to council and DWP that I've physically moved, when there is a crossover between living in a rented and owned property?
2. How to prove to utilities companies that I've moved, when still (potentially) paying several weeks rent and council tax?

weirdtimes

Argh, the simple and obvious answer to the second question has just occurred to me - I just won't give the keys back until the tenancy officially ends. Will mean I have to pay standing charges on meters but that's not too excessive.

HillStreetBlues

When you move into your new property you will claim UC as that is now home. The fact you might be paying rent of the old one doesn't matter.
As you won't be claiming housing costs, there won't be any proof as such needed with DWP.

You will need to check with your council what the rules are about having a second property for council tax.

EDIT once you buy your new property it can be disregarded for 6 months (can be longer), so won't be included in capital calculations.

https://assets.publishing.service.gov.uk/media/69d7c4214abe5b6c5ddf26cb/adm-ch-h2.pdf

Premises intended to be occupied
H2212 Premises that a person intends to occupy as their home shall be disregarded in calculating that
person’s capital where the person

has acquired the premises within the last 6 months but has not yet taken up occupation or

is taking steps to obtain possession and they began those steps within the past 6 months or

is carrying out essential repairs or alterations in order to make the premises fit for occupation and
these have been commenced within the last 6 months1

Once you bought the property if your capital is under £16k (not including the property) you could claim UC then, even if still living in rented place.

weirdtimes

Thank you, that's very helpful. So the DWP won't need proof.

Council tax will be paying full (no single person discount) until I move in. It's doubled after a certain amount of time but I shouldn't be that long moving. Once in, I may be entitled to council tax support, depending again on what's decided re. deprivation of capital. So they may want proof I'm actually living there.

I think I've been getting myself more worried than I need to be. It may be a costly couple of months but manageable and so worth it!

Newcad

Neither New Style ESA or PIP are affected by capital - so Deprivation of Capital cannot be an issue.

Council Tax Relief/Support is not a benefit - it's a reduction in what CT you have to pay - so deprivation of capital cannot be an issue.

You don't mention it, but are you claiming UC for the Housing Element? If so then that would stop (if it hasn't already because of the inheritance) because you will no longer be paying rent.

Even if a means tested benefit was involved, eg. If you want to try and claim UC after moving then remember that for spending of capital to be Deprivation of Capital it has to be done with the intention of claiming or increasing means tested benefits.

It seems pretty obvious that there is no such intention here at all, your intention is to move from renting to owning.

What might or might not happen with your entitlement to means tested benefits is just coincidental.

To sum up I would not worry in the slightest about D-of-C.

weirdtimes

Thank you.

Re. Council tax and deprivation of capital:

In this area, you can't get council tax support with savings over a certain amount. Obviously once my savings are gone my income is low enough to qualify, but I thought they may have similar deprivation of capital rules to the DWP.

I'm not currently receiving any UC, due to inheritance/savings.

Newcad

In this area, you can't get council tax support with savings over a certain amount. Obviously once my savings are gone my income is low enough to qualify, but I thought they may have similar deprivation of capital rules to the DWP.

D of C is generally a DWP concern, however councils can make their own rules about Council Tax Relief/Support so you would have to check your own councils terms for if they include anything similar.

However the point would still stand about it having to be an intentional reduction of capital with a view to getting A Council Tax Reduction or a bigger CTR.

Which is obviously not the case here, your intention is clearly to own your own home.
Everything else that may then happen is just coincedental.

You may also want to look into claiming (or reclaiming) UC once the inheritance money has been spent.

PS. Best wishes in your new home, I hope that you will be happy there.