Selling my home to buy a smaller home whilst on esa.

wheeler1970

Hello new to this. I’m currently in receipt of esa legacy benefit on support group and pip no housing benefit, if I sell the home I live in and buy something smaller in a different area to where I am at present and the new property is same price as the one I sell does it affect my esa? I know pip isn’t means tested but not sure if I’d have to come off esa,plus would I have to claim for u/c if it’s in a different post code. I’m not trying to claim money I’m not intitled too I just want some advice. Ps I have no savings.  

Hannah_Alumni

Hello @wheeler1970

Welcome to the community How did you come across us?

Unfortunately this is not my area of expertise, but hopefully my comment will bump your post for someone to be able to answer better  

wheeler1970

Hello I found the site through a google search,thanks for accepting me to the site. 

calcotti

Buying and selling a home makes no difference to you ESA of itself. However if you have money left over after completing the purchase of the new home then your ESA would be affected if your total capital is then over £6000 and income based ESA would end if your capital goes over £16,000.

If your ESA is a mixed award including contribution based ESA the contribution based would still continue even if the income based ESA part stopped due to capital.

Changing your address does not mean you need to apply for UC instead of ESA. People who change address to a local authority and are claiming Housing Benefit end up claiming IC because they can’t get Housing Benefit at their new address. As a homeowner that isn’t an issue for you even if you move to a different local authority.

If for some reason there is a gap between the sale of the existing house and completing the purchase of your new house then the proceeds of the sale can be disregarded for up to 6 months (or longer if deemed reasonable) if the proceeds are to be used to purchase a new property.

Hannah_Alumni

Just to let you know @wheeler1970 I've popped your post in our ESA section for hopefully more people to see and help  

wheeler1970

wheeler1970

@calcotti many thanks for you help much appreciated,I didn’t want to get in to trouble with DWP. 

calcotti

If you do end up with a gap between sale and purchase and end up with lots of money in your bank account you should report this to DWP but explain the circumstances and say that you understand the money can be disregarded. DWP then decide whether or not to apply the disregard.

if things go smoothly the money will only pass through your solicitor anyway so will not be in your account.