UC - Home

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81986409#Comment_81986409

Was the rental property ever your home? AIUI, the potential disregard for a property you intend to move into is only if you intend to move back into a home that you had to vacate for a short period. If you never lived there before, then you cannot move back in.

When you served the notice on the current tenant, was this all valid? Had you complied with all the pre-requisites that allow a valid notice to be served? Is the tenant indicating willingness to vacate or determination to stay?

peteuk

The OP seems to be either bending the rules to suit, or applying them incorrectly. Which wont help…

At present the OP is unemployed, in rental accommodation and has a rental property with tenants (who aren’t paying the rent - not a concern for the OP’s benefit claims)

My understanding at present is you can not claim UC if the claimant owns a property that they do not live in, which has equality above £16k. If the value of the house - 10% is greater than the remaining mortgage then this is the equity.

UC will disregard the property if it is actively marketed for a period of 6 months, and once sold and the monies being put into buying a property then again it is disregarded for 6 months. These can be extended if you can prove certain things eg completion date is two months after the initial 6 month disregard.

If the OP evicts the tenant (as planned) and then moves into the house, then there will be no requirement for rental assistance on the property the OP has moved out of. I would question where the money for the renovation is coming from, but that’s not a UC question

If the OP evicts the tenant and then puts the property for sale, then a disregard can be applied. However once sold and monies received, unless buying a new property, then the standard UC reductions will applied, as the monies left from the sale is classed as capital. (Reduction of UC is zero upto £6K, £4.35 for every £250 or part of above £6K and below £16K, and entitlement is withdrawn if capital is above £16K). Payment of debt is not classed as DoC.

The OP, or at least the way I read it is wanting, the house disregarded if put up for sale (with a sign in the window) or claims uc and rent when he moves in and still wants assistance with rent whilst moving/ renovating.

Spoonie_Turtle

Just for clarity for any future readers:

UC will disregard the property if it is actively marketed for a period of 6 months, and once sold and the monies being put into buying a property then again it is disregarded for 6 months

This only applies if the premises were formerly occupied as their home, it does not apply if it was just a second home owned as a rental property, or an inherited property, or anything else.

(I agree with your overall point peteuk, OP should definitely not bank on being eligible for UC based on their interpretation of the rules!)

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81986600#Comment_81986600

Well, the disregard for having the property actively marketed for sale might not be met by the OP's initial suggestion to simply put a "for sale" sign in the window. Assuming the T does not take the sign down in any case.

The money for the renovation might be a UC question if this is additional capital or income funds to which the OP has access.

With regard to assistance for rent, AIUI, this is normally linked to eligibility for UC in the first instance and I understand the housing element of UC is not available for an individual who owns a property elsewhere. So, even if a UC award is made, it seems unlikely that would cover the additional assistance with housing costs.

I think the reality here is that the OP will not be eligible for UC. The OP may be eligible for nJSA. The OP's priority should be pursuing new employment rather than trying to present their status in a way that might secure some level of UC award.

I note the OP only seems to have indicated they are unemployed now but not shared details of how this situation arose. I don't wish to pry into the OP's circumstances, but reasons for unemployment can impact access to benefits.

- If that arose because of redundancy, there may have been a sum of money paid to the OP that would make the OP ineligible for UC in any case and consideration of the BTL is irrelevant.

- If the unemployment arose because of health matters, that might open up alternative benefit availability; some of which may not be means-tested.

- If the OP is deemed to be voluntarily unemployed, that might close down some of the benefits eligibility that could otherwise be available.