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Original poster

I just won the ruddy lottery. But …

312 replies

Lotteryinducedturmoil · 02/06/2023 19:37

I just won the ruddy lottery 🤩
£10,000 per month for a year 🤩
But, I’m not sure if I can spend it!?
I have been desperately saving for a deposit to buy my first house for myself and my 3 young daughters for years so this is beyond bloody amazing.
I’m a lone parent & work full time on minimum wage. My wage only just covers my rent so I get Universal Credit to top up my earnings.
I can’t work out if I can use all of the money to put towards a house deposit. Would that be classed as deprivation of capital?
I have been googling my fingers to the bone and can’t find anything out other than I may be expected to live frugally on it for ever more.
My head is going around in circles and getting nowhere.
The first £10,000 monthly amount will take me over the threshold of the savings limit of £16,000 meaning that I won’t qualify for universal credit any longer.
Will I be able to get a mortgage with just my (ever so slightly over) £1,000 a month wages?
I had spoken to a mortgage broker recently and they said I’d be able to get a small mortgage for a shared ownership property with my current wage plus UC benefits/ child benefit etc.
Does anyone have a clue how it all works?
I also have a complete twat of a husband who I have been separated from for 5 years but am still married to. Will he be able to get his nasty hands on any of it?
Any advice would be most helpful.

OP posts:
VitoCorleoneOfMNMafia · 03/06/2023 22:02

Get legal advice from a solicitor who specialises in benefits claims. I had a look at the UC regs for this and it's not at all clear how turning savings/windfall into a house would affect a UC claim.

If you buy your house, you will then have to pay for repairs. Boiler breaks down? You'll have to find the repair bill on your NLW. Hence, I still suggest using the money to pay for training or education that will qualify you for a better paid job. That will set you up for life.

VitoCorleoneOfMNMafia · 03/06/2023 22:03

OhcantthInkofaname · 03/06/2023 21:55

I'm not sure if this would work in the UK it
would work in the USA. You could talk with your bank about them accepting the monthly payments as repayment of a deposit on a house. That way the money would never come to you but come to your daughters as they could be listed as 1/2 owners of the house. You would be responsible for paying the remaining amount in a mortgage.

One reason why that wouldn't work here is that, in the UK, children cannot own real estate.

VitoCorleoneOfMNMafia · 03/06/2023 22:06

Singlemum19802023 · 03/06/2023 22:00

Honestly maybe I am? Did I miss something! Not trying to be a knob. It just read like that?

The OP's concern is about something called the "deprivation of capital" rule that might stop her from going back to claiming UC if she buys a house at the end of her year of getting the winnings. She does not intend to try to claim UC during her year of claiming winnings.

VitoCorleoneOfMNMafia · 03/06/2023 22:09

https://www.gardencourtchambers.co.uk/news/social-welfare-updates/the-deprivation-of-capital-rule-in-welfare-benefits

It's really not straight forward. Get legal advice. I read that as any spending you might make that isn't your normal spending that you do now could risk making a claim again.

Better qualifications = better paid job = never need UC again.

The Deprivation of Capital Rule in Welfare Benefits | Social Welfare Updates | News | Garden Court Chambers | Leading Barristers located in London, UK

https://www.gardencourtchambers.co.uk/news/social-welfare-updates/the-deprivation-of-capital-rule-in-welfare-benefits

MyBrownEyedHandsomeBoy · 03/06/2023 22:25

Awwww I am super jealous but I am happy for you, fair play OP, enjoy it, treat yourself and your kids. Congratulations 🫶
You've inspired me to put the lottery on now 🤣
Xxx

Singlemum19802023 · 03/06/2023 22:42

Thanks for clarifying. I assumed I must have missed something as I couldn’t understand the positive responses to the issue.

Zoejj77 · 03/06/2023 23:33

Congratulations! I don’t think you need your universal credit anymore lovely. Enjoy the £10k a month you will soon have your deposit. Don’t Camelot send you financial advisories for all that

SleepingStandingUp · 04/06/2023 01:05

The biggest issue op is the husband. You need legal advice. You don't need benefits with 10,000 a month, and you can save a load, but you need to be mindful of what he's entitled to when the divorce goes through.

CriticalAlert · 04/06/2023 15:51

Congratulations. You deserve this. If it's 10k a month for a year that's 520 k isn't it? I'd come off benefits immediately. Get a divorce. Get financial advice. Best of luck to you.

Rosscameasdoody · 04/06/2023 15:59

CriticalAlert · 04/06/2023 15:51

Congratulations. You deserve this. If it's 10k a month for a year that's 520 k isn't it? I'd come off benefits immediately. Get a divorce. Get financial advice. Best of luck to you.

£120k, not £520k !!

LoisLane66 · 04/06/2023 15:59

@CriticalAlert
You need to go back to school.
£10k per MONTH is £120k per year.
You were x it by 52 weeks in a year.

CriticalAlert · 04/06/2023 16:44

LoisLane66 · 04/06/2023 15:59

@CriticalAlert
You need to go back to school.
£10k per MONTH is £120k per year.
You were x it by 52 weeks in a year.

Oh dear.... I am being mighty thick. You wouldn't believe that I have a degree in mathematics......😫

Testina · 04/06/2023 17:14

Oh shit re not sorting the divorce out 😢
Do not start mentally spending this on anything but legal advice.
The first £10K month will probably so on solicitor and court fees fighting his claim 😢

Weedoormatnomore · 04/06/2023 17:23

I would go to a solicitor ASAP. As your still legally married your ex could have a claim. Speak to a mortgage broker regarding the mortgage hopefully they can advise you. Congratulations on the win.

Weedoormatnomore · 04/06/2023 17:23

I would go to a solicitor ASAP. As your still legally married your ex could have a claim. Speak to a mortgage broker regarding the mortgage hopefully they can advise you. Congratulations on the win.

Weedoormatnomore · 04/06/2023 17:24

Apologies no idea why my post went twice can't see how to delete !

Onemyownhere · 04/06/2023 17:29

Congratulations🎊🎉 I'm bloody jealous 😂🤣. I don't think u would be able to keep universal credit anymore, but the first month will probably go on solicitors, I would save at least 2 grand each month u get it just for safe keeping...Hope everything goes well for u and fresh start for u and the children

Room102 · 04/06/2023 20:51

Remagirl · 03/06/2023 21:01

@Room102
I was recently divorced after 5 years of wrangling. Our division of assets was calculated from date of separation. There was no agreement just an expensive battle that could have been avoided. So I was simply going by my divorce experience.

Yeah sometimes it is simple. Sometimes it is not...

LoisLane66 · 04/06/2023 21:27

Congratulations, how fantastic 🎉💰💷💰💷😄, however, there are a few complications. 😦

You MUST inform the benefits agency right away. You cannot give money away until you do this nor can you put it into a pension or use it as a deposit or lend/give to anyone else to 'look after'. You also need to inform the DWP and your local authority (if you receive reduced council tax or housing benefit)

Not to complete these actions can land you in serious trouble.

The legalities of your husband's entitlement to any of your winnings is not something I could advise on, therefore it's best to consult a solicitor who deals with family matters as not all of them do.
When you've got it all sorted you can relax knowing that you've done all the right things and what's left, you're free to enjoy.

Original poster
Lotteryinducedturmoil · 05/06/2023 00:08

Thank you so much for all your lovely helpful messages. I do appreciate it.
I’m at work all week so not sure how to get any help with only 20 mins lunch break. I tried Citizen’s Advice on Fri & spent an hour in the queue before having to give up. I won’t be accepting the £ before I get advice.
Camelot lady didn’t offer financial advisor (I did ask). They must be reserved only for mega wins.
I can’t sleep & have a very twitchy eye 😬

OP posts:
JamSandle · 05/06/2023 00:09

Amazing! Would definitely advise financial advice so you make the most of it. How lovely!

LakieLady · 05/06/2023 08:25

Congratulations, OP!

As it won't be enough to buy a home outright where you live, it may be worth considering using the money to buy part of a shared ownership property.

Using capital to purchase a share in a property won't be regarded as intentional deprivation of capital, and you would then be able to go back on UC to give you enough to live on. The rent you would pay on the portion of the property that you don't own would be included as housing costs in UC. There would be some service charges and so on, but these can be included in your UC assessment, too.

This would give you security for the future, an appreciating asset and the opportunity to increase the share of the property that you own as your financial situation improves over time.

LakieLady · 05/06/2023 08:35

penni00 · 02/06/2023 23:30

I do not think you can use it to buy a house, if doing so means you are very soon after the house purchase needing to go back on UC. I believe the dwp would not allow UC if a large amount of savings had very recently been spent buying a house. This may not be accurate, but be careful. I think you may need an appointment with a solicitor who specialises in benefits. Congratulations, I so hope you can buy a home with the winnings.

As long as you're buying the house to live in, it's an absolutely ok thing to do from the UC point of view (ditto other means tested benefits). Different matter if it's bought as a holiday home or investment property, and rightly so.

And good luck finding a solicitor who specialises in benefits. There's no longer any govt funding for welfare rights work, so they're rare beasts these days. II do know of a few who work for organisations like CPAG and CAB, but they're writing handbooks for other welfare rights people, not giving advice to Joe Public.

LakieLady · 05/06/2023 08:46

VitoCorleoneOfMNMafia · 03/06/2023 22:02

Get legal advice from a solicitor who specialises in benefits claims. I had a look at the UC regs for this and it's not at all clear how turning savings/windfall into a house would affect a UC claim.

If you buy your house, you will then have to pay for repairs. Boiler breaks down? You'll have to find the repair bill on your NLW. Hence, I still suggest using the money to pay for training or education that will qualify you for a better paid job. That will set you up for life.

I think it vanishingly unlikely that using this money to buy a property to live in would be regarded as intentional deprivation of capital.

I've given this advice many, many times and have never known DWP to have an issue with someone using a windfall to buy a home.

LoisLane66 · 05/06/2023 11:44

@LakieLady
I think that the OP needs to get advice from the relevant departments, DWP, Housing Benefit, UC and a solicitor dealing with family matters.
It does matter if you make a partial house purchase with money which alters your benefits income, as it is 10k every month for a year which will bump up the amount in her bank account. You cannot use unearned, undeclared income to make a purchase which is seen to be having your cake and eating it.
The benefits will alter but only for 12 months and then, unless the OP has more than the allowed amount in her bank, she will have to make a new claim for UC.
We all mean well but the OP needs advice from the horse's mouth. That way she won't fall foul of any rules.