Sad for my friends £125k lottery win.

[Sogfree]

£125k win on the postcode lottery.

Single mum to 3 children (all primary age). Works as a TA, so receiving benefits to top up her income.

She would like to use her winnings for a deposit on a house. But due to the benefits rules not being allowed to pay a mortgage, she can't buy a property.

So she's going to spaff the entire lot as quick as she can, and the government will continue to pay rent to a multi property owner and make them richer.

The only asset she'll get to keep is a newer car - not anything fancy as she knows she won't be able to afford the insurance/fuel once the winnings run out.

Her one chance of breaking free of a life on benefits and she's got to throw it away. It feels wrong.

She should do part buy part rent. The she can own £125k worth of the house and the government will continue to pay for the other share. She should look into it.

Could she buy a part ownership property?

Of course she doesn’t have to throw it away. She’s choosing to throw it away.

Could she buy a flat outright to rent out? Use the rent to supplement her income and have an asset.

Could she use the money to retrain and earn more? Or buy a flat outright?

Ridiculous post. Of course she can use the money wisely and actually provide for her family! You and her are being very short sighted here.

Or she could invest it in her children’s name to secure their future rather than “spaff it away”? Sorry but very limited sympathy.

Why are you sad for her? I’m sure she would rather have it than not, even if she can’t buy a house.

Has she spoken to a financial advisor?
Why does she have to throw it away? Why is she going to "spaff the lot" as soon as possible? That makes no sense, she sounds really financially irresponsible and needs proper advice.
I agree with poster above, she is choosing to "throw it away"

Are you really expecting us to pity someone who has got free money being thrown at them left, right and centre?

Yeah right.

She doesn't have to "spaff the entire lot". She could put it in a pension for a start. She could use it to retrain. She could part buy a house.

Spaff the entire lot sounds like a weak excuse for wanting to spend the lot on fun things. (There's nothing wrong with that, but at least be honest about it.)

She could use it to support herself while she trains as a teacher or qualifies in something else. She is being very short sighted.

She could put some in to her pension to help secure her future .
Childrens isas for the kids so they can have some money when they are older.
A nice holiday for them this summer.
A decent new car.

I feel she would be very foolish to piss all that money up the wall, it's an opportunity most people could only dream of.

I'm not really familiar with what the rules are regarding benefits, if she put a large deposit down on a house, would that be seen as a deprivation of assets type thing, so she wouldn't be entitled to any benefits at all? Or would she no longer be entitled until her money goes below a certain amount? If the latter, I'd rather put the deposit down, pay my bills from the remaining funds until I hit the level I was entitled to claim again.

She should probably take a better look at the benefits rules…

She can own a home, she just won’t get help paying the mortgage.

If she spends it as quick as possible, she’ll be considered to have deprived herself of capital and be treated as if she still has it for as long as they deem she could have lived it on it from.

Either she’s very poorly informed or you are.

You can’t have a mortgage if you’re on benefits?

Shared ownership should be possible.

Or a small flat outright for them to live in

Or she might be able to invest it for the children. She needs advice, rather than a knee jerk reaction to spend it all.

Sorry but no sympathy here either. If I had that kind of money I’d be looking at either a small flat that I could live in or rent out or I’d be looking at land which I could either eventually live on or will at least appreciate in value

That is ridiculous. She could speak to a financial advisor and make provision for her children and her retirement.

THIS. Seriously? - your friend is an idiot if she thinks the only option is to spaff it away. Geez.

No sympathy here.

Oh dear.

Why does she need to remain on benefits if she has £125k and a job?

Put some of the money down as a deposit, use her salary to pay the mortgage. Use the rest of the money to live on for a while until salary grows or children become independent

I'm sorry but this is a very underclass/ lower class/ poor persons way of thinking.

I was once talking to a colleague about winning a million pounds and what we'd do with it. . She said she would stay in her council house but wouldn't buy it because then she'd have to pay for the up keep. It's a mindset.

The very fact that she has £125K sat in the bank should affect her benefits - isn't the limit £16K in savings?