Universal credit and house sale

[Bordon42]

My mum passed away and I’m currently living in the property but sold the house and the sale of the house is being split 50 50 between me and my brother. I can’t afford to buy anywhere but want to do a shared ownership scheme and use my money as a small deposit but unfortunately I can’t afford the rent per month. Will universal credit pay the rent for me on the shared ownership property if I pay a percentage with cash I have read that in some instances it can be classed as disregarded property or if I put the money straight into the scheme will that be classed as deprivation of capital. Or if I put money straight into share of 2 bed house will they ask where I got money and not pay the rent monthly. I’ve been told different things by different people so confused as someone said you have 6 months or something

Depending on your income etc etc, UC can pay the rental portion of a shared ownership property.

Proceeds from the sale of one home in order to buy another can be ignored for 6 months (or longer if deemed reasonable)
https://www.turn2us.org.uk/Jargon-buster/Disregarded-Property

https://england.shelter.org.uk/professional_resources/legal/benefits/universal_credit/universal_credit_capital_rules#title-3

Yes, money from a house sale used to buy a new house can be disregarded. It's 6 months by default, but can be extended if there's a good reason - typically if you were in the process of buying property but the seller pulled out.

Whether Universal Credit will pay rent on shared ownership schemes, I don't know. I suggest looking again at buying outright though - IMHO "shared ownership" is usually the worst of both worlds.

Hi I’m a housing benefit officer but the capital /house purchasing rules are the same between HB and UC.

Yes UC will cover the rent and (allowable) service charge portion (normal HA under occ rules will apply). Using capital to purchase a residential property is not considered deprivation of capital. I’m not going to rule out them asking where you spent your capital but as long as you provide proof of purchase that should be fine (I do doubt this would happen though if you apply once it’s spent).

I've already started my application for UC how do I go about it as havnt at the minute received any funds from the house sale as not yet completed