Purchasing house whilst receiving PIP and ESA

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MichL
MichL Community member Posts: 3 Listener
Hi

I have Power of Attorney for my disabled sister (Down's Syndrome). She currently owns her home with no mortgage but we now feel she would be better in an over 55's complex which she is happy about.

She currently receives PIP and ESA - not means tested.

My parents can afford to purchase her new flat outright using their own money (loan to sister) without selling my sisters current home (in case she does not settle.) Both properties would be in my sisters name.

If after a few months she is happy my parents will sell her current home and get the money back from the sale of current home.

Question -

1/ Would this affect my sisters PIP and ESA? 
2/ What happens if both properties stay in my sisters name for a prolonged period?
3/ Anything else we need to consider?

Comments

  • ShirleyW
    ShirleyW Community member Posts: 353 Empowering
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    As both of your sister's benefits (PIP and Contributions Based ESA) are not means tested then I don't think that having a second home will affect them.

    However there are several posters on this forum with a lot more knowledge than I have and I am sure that they will be along to advise you more decisively than me.

    One thing that does spring to mind is that you should find out if any of your sister's ESA is an income related top up.
  • MichL
    MichL Community member Posts: 3 Listener
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    Reply to Shirley W - Thank you for your reply - her ESA is NOT an income related top up
  • calcotti
    calcotti Community member Posts: 10,005 Championing
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    Her PIP and contribution based ESA are not affected by her capital so nothing you have described makes any difference.
  • woodbine
    woodbine Community member Posts: 12,117 Championing
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    The only concern I'd have about that kind of housing might be the monthly charges which can be high and the fact that they are hard to sell especially in a difficult market
  • MichL
    MichL Community member Posts: 3 Listener
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    @woodbine - Thank you. We have factored the monthly charge and it is affordable. She will also hopefully have some money left over from the sale of her current home to factor in increases.
    The flat itself in an area where it is quite cheap compared to the rest of the UK and it is an older property whereby the value has already increased then decreased.
  • L_Volunteer
    L_Volunteer Community Volunteer Adviser, Scope Member Posts: 7,926 Championing
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    You are welcome @MichL. It is the very least you deserve. 

    It sounds positive that you have factored in the monthly charge and it is affordable. Hopefully, she will also have some money left over from the sale of her current home to factor in increases. 

    It seems like it is affordable and workable which is great to hear. Really chuffed for you! Here for you and listening to you if you would like to talk to us further about this though  :)