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Original poster

Is this allowed? Buying property.

36 replies

MyCreation · 31/01/2023 18:32

Fourteen years ago I was left homeless by my abusive ex. The only asset he hadn’t squandered after 23 years of marriage were his private pension savings and the £10,000 that was left after our house was taken back by the building society to cover his loans.

I was left £75,000 inheritance after my DF died. So in all I had £170,000 which I have invested and been taking an income from since I took early retirement due to a progressive health condition.

I’ve been renting ever since. Now rents are getting out of hand am I allowed to use my investment to buy a small flat outright, if that then leaves me needing to claim housing benefit in order to live . The flats I’m looking at would leave me with less than £16,000 you need in savings in order to claim benefit. It seems so crazy putting more and more of my savings into a rental property but would buying a flat be viewed as deliberate disposal of savings ? I’ve googled but can’t seem to find the answer. I’ve never claimed any benefits before.

OP posts:
Babyroobs · 31/01/2023 20:37

UrsulaPandress · 31/01/2023 19:30

Where us your £170k invested to be living off the interest?

I was thinking exactly the same !!

Babyroobs · 31/01/2023 20:41

MyCreation · 31/01/2023 19:42

Thanks so much everyone. I am 62 and will be entitled to a full state pension at 67.5 if I’m still alive. I am going to have to do a lot of research to see if I’ll have enough to cover all my outgoings if I buy and do realise all repairs and building insurance will be my responsibility. I doubt it’s going to be possible as it’s a struggle on what I’m taking from my savings each month just to rent plus bills. But the main thing I wanted to know is if it would be seen as deprivation of assets if I bought a flat and then claimed UC immediately.

You need expert advice on this as it's an unusual situation. I have an inkling it is allowed as reasonable spending of assets would be allowed, i guess it depends if a decision maker felt the amount you were spending on a property is reasonable. I would ask somewhere like the money saving expert site where there are some very knowledgeable people. Worst case scenario is that you buy then found out they are deciding it is deprivation of assets and you only have non means tested benefits like PIP left to live off. You need to get rock solid advice.

TurkishClouds · 31/01/2023 20:43

Babyroobs · 31/01/2023 20:37

I was thinking exactly the same !!

Show quote history

She says she's taking an income not living off the interest. Presumably that income is eroding the value of the £170k.

Babyroobs · 31/01/2023 20:48

TurkishClouds · 31/01/2023 20:43

She says she's taking an income not living off the interest. Presumably that income is eroding the value of the £170k.

Show quote history

Yes, I see. Can't be much though if it's been used for 14 years. Op do you receive a private pension ? Have you considered claiming PIP which is non means tested?

Soontobe60 · 31/01/2023 20:50

Op, where about do you live, and are you willing to move somewhere cheaper? Do you have £170k left in savings?

LakieLady · 31/01/2023 21:10

Using capital to buy a home to live in isn't treated as deprivation of capital by the DWP.

LeapingCat · 31/01/2023 21:53

No, this wouldn’t count as deprivation of assets. Obviously you’d be on UC not housing benefit and you’d need to make sure you could cover costs. You could look at a retirement flat as those tend to be cheaper? But you’d have to watch out for service charges.

Badbudgeter · 31/01/2023 22:02

This wouldn’t be deprivation of assets but I think you might struggle financially. Uc is not much for a singleton and if you have any savings left over £6k they they take away £4.35 per £250. If you had just under 16k left that would reduce your UC by £174 a month meaning you had about £170 left to live on obviously you can top up using your savings but I think you’ll get through them quickly.

Im not saying it’s a bad idea in fact having secure accommodation is a massive plus. Just consider carefully the property you take on. I’d be thinking modern , low maintenance, well insulated so cheap to run etc.

Babyroobs · 31/01/2023 22:07

Badbudgeter · 31/01/2023 22:02

This wouldn’t be deprivation of assets but I think you might struggle financially. Uc is not much for a singleton and if you have any savings left over £6k they they take away £4.35 per £250. If you had just under 16k left that would reduce your UC by £174 a month meaning you had about £170 left to live on obviously you can top up using your savings but I think you’ll get through them quickly.

Im not saying it’s a bad idea in fact having secure accommodation is a massive plus. Just consider carefully the property you take on. I’d be thinking modern , low maintenance, well insulated so cheap to run etc.

Sounds like op might qualify for the LCWRA element of Uc also though which would add another £354 a month to her standard element.

Original poster
MyCreation · 01/02/2023 00:10

She says she's taking an income not living off the interest. Presumably that income is eroding the value of the £170k.

exactly this. It started off higher but when I last checked I have £170,000. It’s probably gone down more with all the economic mess. There have been years when it’s done really well though. I can just about make ends meet now with rent and outgoings but there’s nothing left at the end of the month. I’ve been looking at retirement flats which are affordable but the service charges are really high. There are some areas of the city that have some cheaper priced properties which is where I’ve been looking. The one I was looking at is a modern , ground floor flat that looks well maintained. I really need someone to go through the figures with me and see if it’s at all do-able though. If it is, it might leave me no extra to maintain it which is not a problem I have to consider in a rented place. Thanks for your help everyone. Really appreciate it,

OP posts:
DemonHost · 01/02/2023 00:32

You don’t say if you have children or not and therefore want to leave an inheritance, but the other thing you could look into would be getting quotes for an annuity - if you have ill health then you might be surprised what £170k will buy you.

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