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Original poster

UC and Inheritance buying own flat

45 replies

Whiteminnowfish · 03/05/2023 18:07

In a few months I will be inheriting between 30 - 40k.

I split from my partner 1 year ago and i am still living in the family home which long term I cannot afford to live in. Ex wants to move back in, so I will have to move out. We have a flat we rent out.
The rental income does not cover the mortgage, as it is out of a fixed rate, so interest rates have risen.

I would move into this flat, but it would be on the basis I can put my inheritance in towards a deposit to remortgage it.

It's currently in negative equity and the mortgage amount is what the property is worth £85k outstanding on mortgage, as we've been paying interest only on the mortgage.

Will this affect my UC?

OP posts:
Whisper23 · 03/05/2023 21:52

Whiteminnowfish · 03/05/2023 21:44

About 40k each

Show quote history

So with that £40k plus your inheritance you could almost buy the flat outright, if I've understood your first post correctly. It's worth £85k and that's the outstanding mortgage amount (which means you're not actually in negative equity)?

If he wants to move back into the family home tell him you'll happily go when he buys you out. Otherwise you stay put until he agrees to sell. I wouldn't move out now. But as I said before, get some legal advice.

Original poster
Whiteminnowfish · 03/05/2023 22:01

Whisper23 · 03/05/2023 21:52

So with that £40k plus your inheritance you could almost buy the flat outright, if I've understood your first post correctly. It's worth £85k and that's the outstanding mortgage amount (which means you're not actually in negative equity)?

If he wants to move back into the family home tell him you'll happily go when he buys you out. Otherwise you stay put until he agrees to sell. I wouldn't move out now. But as I said before, get some legal advice.

Show quote history

That's what I was wondering, about staying put and refusing to move until I get my share.

But what about my inheritance money and the affect it will have on UC? I was thinking about putting it into mortgage on family home, then when we divorce I get my inheritance back and half of equity of property, the use it all as a deposit.

I have a daughter to look after and am depressed and suffer from anxiety, so don't feel like I am in the right headspace to look for a full time job.

I currently work part time

OP posts:
Whisper23 · 03/05/2023 22:14

Oh so you're married are you? In that case sorting out owner of the family home will be part of your divorce settlement. Have you started divorce proceedings yet?

I wouldn't rush into tying up even more capital in the family home.

Riverlee · 03/05/2023 22:16

Will the inheritance be seen as family money as well in the divorce?

Doggymummar · 03/05/2023 22:19

Yes the inheritance will have to be split to I'm pretty sure. My ex was made redundant during our divorce and had to split it

caringcarer · 03/05/2023 22:20

Don't put your inheritance into your family home as divorce settlement might just award DH half of equity which would include your inheritance. Just tell DH and your solicitor you want to sell family home and both get your equity share. Let your stbexh sort out his own life/accommodation.

Original poster
Whiteminnowfish · 03/05/2023 22:26

Whisper23 · 03/05/2023 22:14

Oh so you're married are you? In that case sorting out owner of the family home will be part of your divorce settlement. Have you started divorce proceedings yet?

I wouldn't rush into tying up even more capital in the family home.

Not started divorce proceedings, as too soon.

So I feel stuck as to where to put my inheritance, as I'd like to use it as a deposit for a property.

I am snookered either way with being on UC.
I don't want to squander my inheritance as it is from my parents death

OP posts:
Original poster
Whiteminnowfish · 03/05/2023 22:29

caringcarer · 03/05/2023 22:20

Don't put your inheritance into your family home as divorce settlement might just award DH half of equity which would include your inheritance. Just tell DH and your solicitor you want to sell family home and both get your equity share. Let your stbexh sort out his own life/accommodation.

How about if I ask a solicitor to put some legal wording in writing stating that I am putting 40k of my inheritance in mortgage and it is only my money. Not for ex

OP posts:
Whisper23 · 03/05/2023 22:36

Unfortunately it's not only your money as you're married. I think you need to start divorce proceedings asap. You can't unravel things until the divorce is sorted. The impact on your UC is going to depend partly on the timing of events (i.e. when you receive the monies).

Aylestone · 03/05/2023 22:41

Jesus fucking Christ. The first UC thread I’ve seen where the op owns two houses, is about to get a 40k inheritance, and is getting advice on how to screw the system even more.

Whisper23 · 03/05/2023 22:46

She doesn't really "own two houses" though does. On paper she does but in reality one has a relatively small amount of equity and the other has none. And I don't think anyone is advising her how to screw the system.

caringcarer · 03/05/2023 23:15

Whisper23 · 03/05/2023 22:46

She doesn't really "own two houses" though does. On paper she does but in reality one has a relatively small amount of equity and the other has none. And I don't think anyone is advising her how to screw the system.

£80k equity is not that small surely.

Whisper23 · 03/05/2023 23:20

£80k equity is not that small surely

Well yes it is really, her half of that is relatively small in the grand scheme of things.

WoolyMammoth55 · 03/05/2023 23:28

OP, I don't want to stress you out but unless you start divorce proceedings ASAP there's very little chance you can ring-fence the inheritance as 'your money'. The court will be almost certain to consider it family money if it comes to you while it's 'too soon' to start divorce proceedings...

Unless your marriage has been very short or something? Or if it came to you a few days before the divorce was final. But it sounds like there's not much your solicitor can do about this; if the position was reversed and your stbxh came into a large amount of money would you to refuse to take your half?

Wish you good luck but don't think the UC is your problem here.

InaMuddle2 · 04/05/2023 06:40

Will the inheritance be seen as family money as well in the divorce?

Not necessarily. Inheritance can be treated separately especially if it is received after a couple has separated.

It's not straightforward but OP needs legal advice.

Rant46892 · 04/05/2023 06:57

You need legal advice on the properties.

As far as uC the inheritance depends on the timing. If you use it to pay debt including mortgage that will not be a problem. The issue will arise on which assessment period.

When you move the family home may be ignored for 6 months if you are taking steps to sell. However as you have lived separately for a while that might not apply.

Citizens Advice may be able to help.

JustGotToKeepOnKeepingOn · 04/05/2023 17:22

I'm amazed you've been allowed UC when you have a property you rent out.

Babyroobs · 04/05/2023 18:43

JustGotToKeepOnKeepingOn · 04/05/2023 17:22

I'm amazed you've been allowed UC when you have a property you rent out.

The system is so wrong .

Redebs · 04/05/2023 19:01

Aylestone · 03/05/2023 22:41

Jesus fucking Christ. The first UC thread I’ve seen where the op owns two houses, is about to get a 40k inheritance, and is getting advice on how to screw the system even more.

I know. It's ridiculous.
I'm shocked she's allowed to rent the second property out to buy it for herself while claiming UC.

Sorryyoufeelthatway · 04/05/2023 21:23

Wow just wow

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