Universal Credit

[iRun2eatCake]

I'm just thinking ahead.

Currently I'm on TC and WTC. Two DC aged 18 and 15 years. Eldest has ASD.

I work PT and will increase my hours in the future.

I own my mortgaged property.

Difficulty is l also own 25% of my Mum's house. It was passed down to my sibling and l when our dad died as they were Tenants in Common.

I receive no income from my Mum's home.

Just wondering how this will affect me when l get Transitioned over to UC.

Many thanks

If you have more than 16k in equity in the house then you would not be able to claim UC. However if there is a valid reason why the house cannot be sold, it may be able to be disregarded, I guess it would go to a decision maker.

You are unlikely to be transitioned over before your youngest leaves education anyway, and there may be transitional rules which mean the equity can be disregarded. If you increase your hours in the future and have no housing costs, it is unlikely you would qualify for Uc anyway without a child on the claim.

What @Babyroobs said.
The migration to UC is continually delayed and rules are changing all of the time, as is transitional protection, just stay on TC as long as you can, don't overthink it. I concur with @babyroobs if you can't release that equity I'm sure any decision to use it as notional capital could be challenged or you won't qualify for UC anyway.

The equity in my own home that l live in?

@Babyroobs

If you have more than 16k in equity in the house then you would not be able to claim UC. However if there is a valid reason why the house cannot be sold, it may be able to be disregarded, I guess it would go to a decision maker.

Are you referring to my Mums home? If so she owns 50% so has the greater share. Also she lives there and selling it would make her homeless.

I receive nothing from it.

@iRun2eatCake

The equity in my own home that l live in?

No the house you have capital tied up in but don't live in, so your mum's house. How come you own 25% of your mums house? I guess if the house can't be sold as your mum lives there then maybe it can be disregarded, it is something for the DWP to decide. I guess it depends the reasons why you end up with 25% of a house. Like I said previously though it's unlikely to affect you before your youngest leaves education.

It doesn't really matter that your mum owns 50%. If the capital you have in the house is above 16k it may affect your ability to claim UC and have to go to a decision maker, but as your mum is presumably retirement age, it can be discounted.

The DWP would make a valuation of your share of the other home.
If the occupier falls within certain categories it may be disregarded altogether.
Otherwise its value would be taken into account.... this value may be quite low if it would be difficult
to sell the property

www.entitledto.co.uk/help/own-other-property
assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1038390/admh1.pdf
Paras.1631 on

@Babyroobs - my parents house was Tenants in Common so they each owned 50%. When my Dad died his 50% was passed to my sibling and l to share - so 25% each

@Babyroobs

It doesn't really matter that your mum owns 50%. If the capital you have in the house is above 16k it may affect your ability to claim UC and have to go to a decision maker, but as your mum is presumably retirement age, it can be discounted.

Yes, she is mid 70s

@oviraptor21

The DWP would make a valuation of your share of the other home. If the occupier falls within certain categories it may be disregarded altogether. Otherwise its value would be taken into account.... this value may be quite low if it would be difficult to sell the property

www.entitledto.co.uk/help/own-other-property
assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1038390/admh1.pdf
Paras.1631 on

Many thanks for the link.

I couldn't find reference to which categories the Occupier ie my Mum could potentially fall under