House sale and Universal credit

[leopardprintlindt]

Making plans to leave DH. House is not in my name and I don't pay the mortgage. I will leave and go into rented until the house is sold, which could take 6 months to a year - would I qualify for universal credit if I technically have an asset? Sorry if that's a stupid question!

I think you may qualify but a benefits expert on here needed! I'm presuming you will get a share of the property once sold as you are married and if it's under 16k shouldn't affect benefits however if it's a sizeable chunk you will need to put this into another property fairly quickly or your benefits will reduce or cease until assets are under the cut off level.

Thank you @CherryRipe1, I will indeed get a payout, a sizeable amount of circa £100k, which sounds like an awful lot of money, but wouldn't get me a one bed flat near to where kids are currently doing A levels/GCSE's, even with a mortgage on top. Still, it would pay the rent for three years, but then I'd have no money for a deposit anywhere.....

*it would pay the rent for four years actually, on a 3 bedroom house round here

With the rent, cost of living and kids it will dwindle away pretty quickly. Idk if you are working at present to offset some of the costs. Also maybe get some legal advice on your rights to remain in the marital home and child maintenance depending on your children's age and custody agreement. If the home is sold and you can't get UC due to too much money perhaps some of your lump sum could go into a pension which could ringfence it before having to spend the rest of the assets on rent etc. Or perhaps a shared ownership scheme where you buy a percentage of a property via a HA with your lump sum & the rest is rent which could be covered by UC local housing allowance. Again legal/financial advice needed.

If you bought a SO property you could invest your equity on a % of a property and potentially claim HB on the rental element. I know mumsnet hates SO so someone will say not to do this.

Just noticed the above poster had the same idea.

i think friend got UC and HB while house was being sold. Speak benefits adviser as this was few years ago. I think there were conditions eg the house had to be on market for period she got UC.

UC is based on your income so you'd get that if you qualify.
The housing element of UC would depend. As you're married you own the asset.
But once it's sold you get c6 months grace where you can claim housing for rent and keep U

It will be disregarded property for 6 months or more
www.turn2us.org.uk/Jargon-buster/Disregarded-Property
More detail at assets.publishing.service.gov.uk › ...PDF
ADM Chapter H2: Capital Disregards - GOV.UK H2114 etc

Thank you all, that's really good information! @CherryRipe1 I work in the NHS 30 hours per week. I wouldn't want to stay in the marital home for many reasons, although I know it would make sense to on paper. Really interesting in terms of putting equity towards pension contribution etc, although realistically I would need to put it towards another property, so it's good to know it might be disregarded for a least a little while.

You should be entitled to both, at least until you get your share of the house sale. I was in the same position except I stayed in the house and he left. I claim UC. Cant claim the HB element though as I dont rent and he pays the mortgage. We've finally sold and Im moving to rented. I will then be able to claim HB and keep my UC as I won't breach the savings threshold (not a lot of equity and I will clear all my debts).
Use one of the online calculators and run through diff scenarios to see what you could get.

I am in a very very similar situation
I don't want to write too much on here Incase my ex finds my username..
But can you private message me
I have some info I can share with you.
It's what I've been told
And might help :)

You don't have an asset, you don't own a property. You can claim now and then when he pays you out you'll have to stop claiming if you have savings over 16k.

@leopardprintlindt Yes definitely look into shared ownership or a mortgage on a more affordable property. Better to put it into your own home if you can than waste it on dead rent money paying a landlord's mortgage until money's gone so you can claim benefits! Your situation may change work wise too as your children become more independent enabling you to buy something.

You don't have an asset, you don't own a property. You can claim now and then when he pays you out you'll have to stop claiming if you have savings over 16k

That's not true
Well the bit about claiming now is
But the other part isn't..

Look at the link a previous poster posted
You have 6 months to put the money straight into your main residence until it affects your claim

It's called disregarded property
Have a look

Be wary of 'deprivation of assets' when deciding what to do with the divorce settlement. You can use the money to pay off debts or for 'reasonable purchases' google ADM H1or for house purchase (see H2119 from my link above - which I notice doesn't work very well - just Google ADM H2).

Sorry - posted before I'd formatted properly. Hopefully you get the gist.

Para H1795 on from ADM H1
assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1073425/admh1.pdf

Chapter H2: Capital disregards
H2119 For the house purchase exemption.

Hi.
Bit of a tricky one here so please bare with me.

Me and husband split in 2020. He refused to leave marital home so I moved out and private rented with my 2 children.

I am named on the mortgage however is wad his house before I moved in and remortgaged.

I claim universal credit and get housing element, single and children elements.

Because I have an iva that is higher than my half of the equity in the house uc have disregarded by half of the house.

My iva finishes in August and so therefore my half of the house will then be higher than the 16k and counted.

Husband is refusing to sell the house as he still has an iva for 1 more year.

He says he will fight me to the end to not sell.

I have seeked some legal advice but I'm not entitled to legal aid for family matters.

My question is will uc stop my money if he is refusing to sell the house.

If the house was to be sold then we would each get about 30k. He claims he would be homeless and lose his job as he works from home.

A solicitor I spoke to said they look at need of both parties and that they may let him stay and make him sell later down the road. Also that both parties need to be able to have a home after the sale.

Whole thing is a confusing mess lol.

Seriously tho any help would be greatly appreciated.

I work 28 hours a week around my children and losing my uc is a scary thought.

Many thanks

Hiah I'm in a similar position but all the money I'm getting for the house sale is going towards another house
I don't work at present and live only on my uc with no other savings apart from what is coming from the house sale will I still get uc??

Yes, the money from the sale of the house will be disregarded for 6 months if the equity will be used to buy another property.

The money is from rental properties we had while married the main residence is still not up for sale as yet will I have to pay capitals gains tax on this if I buy a main residence or can I put the house into trust at all ??