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.

Exactly. UC wouldn't see her buying a house as deprivation of capital anyway, but she would then be responsible for a mortgage and she doesn't want to pay for any of that sort of thing it seems.

I didn’t say they were did I?

When I read the OPs post I assumed she was saying friend could not get a mortgage because mortgage company would not accept UC as income to qualify for one. Not that friend did not want to pay a mortgage. She is currently paying rent so why should she not want to pay a mortgage?

A rubbish area in what way?

Its really nice.

Her rent is paid for by benefits, a mortgage won’t be, so month to month she will be worse off with a mortgage financially. Plenty of mortgage companies accept UC

She's not currently paying rent. Or all of it. The dwp are. She's on benefits

Can she invest it for the kids or is that seen as "deprivation of assets"?

I know she could use it for housing or deposit

Giving it away, even to her kids is deliberately deprivation of assets

The South East seaside towns in that area are a bit run down at the moment, and like all places there are good and bad areas. Bexhill is lovely and some very expensive houses and it's right next to St Leonards

My brother bought a two bedroomed flat in the West of Scotland (I won't say exactly where) two years ago for 100k. It would have been less but it was more or less fully furnished as the owner wanted a quick sale.

What is her mother's situation?
How about, mother and friend pool their resources and move together to a 4-bed house in the North East where friend continues to work as a TA in a school there (given national TA shortage she should be able to find somewhere) and can care for mother in the same house with no commute/they both already know someone? She could then also get carer's allowance, I believe.

My friend is a single parent, works, receives Universal credit top up and has a mortgage... why can't your friend do the same??

The only thing she can do that won't be classed as deprivation of capital is buying a house, paying debts and using it to live on. Wasting it will be completely pointless as she will lose her universal credit and not have any of the winnings to live on. And if she thinks they won't find out shes in for a nasty shock. They are constantly reviewing uc claims to make sure people aren't doing stuff like this

Because the OPs friend doesn't want to pay a mortgage going by the first post

She could do something positive with it.

Fill up ISA's for her and her children, invest in stocks and shares, put money towards education to better herself and her children's future long term.

Come on OP some people just can't help themselves can they and would rather live off others. Ridiculous.

You only better yourself by changing your mindset!

She could speak to a financial advisor for one off advice on how best to protect and make the most out of the money.

"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."

If she does this UC will refuse her claim, as they will look at what she's spent it on and declare it to be deprivation of assets. Excessive spending, ridiculous holidays, giving money away etc can't be hidden anymore as the ask for bank statements to prove what she spent the money on.

She can’t spend the money that way as then she wouldn’t be able to claim benefits. She needs to use it to live off if she’s not buying a house

I see what you mean. It's a ridiculous system isn't it.

Just having a brain dump.
It does seem to be a common thing that people on benefits come into money, lottery, inheritance or compensation payout etc

Often its a decent deposit but not enough for them to buy a property outright. But caring responsibilities mean people can't just work longer hours, or commute to a big job in the city. So mortgage for the rest isn't possible.
So they end up having to use the cash to live off and then return to benefits.

Maybe it would make sense for people to be able to invest the capital in some way thats tied up so once circumstances change, children become more independent, the person they care for no longer needs care they are then able to have the capital released to invest in property or education.

I just picked random Midland place, Nottingham, I dont know Nottingham, theres plenty of 2 bed terraces for that price and a couple of 3 beds.

On Rightmove.

It’s not ridiculous to not give benefits to someone who has £125k in the bank. Most benefits are means tested and supposed to be for those in need of help/ in desperate times, not a lifestyle choice.

Yes it sounds like they are currently getting housing benefit, which obviously isn’t paid to people with a mortgage.

She’d be better off putting it into a pension. But she should speak to an IFA. She can afford one.

I actually meant it's ridiculous someone on Benefits can come into money but still not be able to purchase a property etc etc as it'll negatively affect them.

It wont negatively affect her

She could buy a property, even without a mortgage, then not have to worry one bit about whether the government might change rules about housing benefit or rent elements or if she is in a private rental whether her landlord will evict her and sell up or any number of things

She would have an asset to leave her kids and even if it never went up in price, she will have a guaranteed roof over her head

I find some of the views on this thread outlandish.

What a sorry state we are in if that is indicative (and I think it is) of the wider population.