Finances and extra costs
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ADVICE WANTED BENEFITS AND BUYING/OWNING LAND

[Deleted User][Deleted User] Posts: 1 Listener
edited August 2018 in Finances and extra costs
Single mum currently on benefits esa,child tax credits housing benefit living in council property my health has become very bad an I’m no longer able to work diagnosed with me,fibro and a list of problems leaving me bed bound half the time.which means they will have to house me in a council bungalow which I’m planning or slowly but surely trying to provide a home for myself longeterm. I feel trapped that it’s benefits and being ill and my life can’t go no further I have found a piece of land to buy which is cheaply priced at 12k with the hope of buying it and in the long term living on it with planning  I have approached my bank for a loan which will lend me 7 k and already have £5kin savings my question am I allowed to buy land whilst on benefits also do I declare before I buy or after also if I buy it how will it effect benefits I have searched internet and citerzens advice all confusing 

Replies

  • thespicemanthespiceman Member Posts: 6,408 Disability Gamechanger
    Hello @lackeen2018 Pleased to meet you welcome.

    I am unsure of an answer to your question.  I would just suggest CAB..  Been on their website but have you spoken to CAB.

    Know the rules around benefits, savings property are confusing and complex.

    Have you seen the DWP website for qualifying criteria for owning property or land.

    Maybe speak to our team 0808 800 3333.  Hope that helps.

    I just wanted to welcome you. We are a supportive friendly community who care and share.

    Lots of information advice . Ask the community anything.

    Please take care

    @thespiceman
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  • [Deleted User][Deleted User] Posts: 1 Listener
    Thankyou for welcome it is all very confusing and lots of different advice will call that number tomorrow 
  • Pippa_AlumniPippa_Alumni Scope alumni Posts: 5,851 Disability Gamechanger
    Hi @lackeen2018, and a warm welcome to the community!

    Unfortunately this isn't something we've come across before here on the community, and from what I can see online it certainly does look like conflicting advice! It would be great to hear how you get on and what you decide. 
  • mikehughescqmikehughescq Member Posts: 5,802 Disability Gamechanger

    There isn't enough information here to give a comprehensive answer as we'd need to know more about whether your ESA is contributory; the total amount of capital above and beyond savings; whether you get CTR and whether you are aware of the relevant capital limits; the idea of tariff income etc. Certainly I would strongly recommend not posting the answer to a question about capital limits on a forum where you don't know who could be reading but... just in ballpark terms...

    Contributory ESA would not be impacted. Child Tax Credits would also not be impacted. Means-tested ESA, HB and CTR might be.

    If you do manage to secure a loan then you will have at least £12,000 in capital until such time as you buy the land and it will count as capital for the MT ESA, HB and CTR. This will reduce or end those entitlements depending on your overall income/capital situation.

    When you buy the land you will have disposed of the actual capital but, until you're living on it, it will still count as a capital asset. It's value once purchased may well increase once you have planning permission and so obviously that could also impact.

    I think there's an arguable case that you might be better advised to consider other options such as private renting and having some capital in the bank which could be used to top up weekly benefit income as and when. The reason I say this is that you appear to be at full stretch just to buy the land. How you would then fund building I am not clear. If you were somehow able to achieve that you then have zero funds for property maintenance, which could ultimately mean you end up living somewhere worse than you currently are. The property has yet to be built where nothing goes wrong so it's not realistic to expect to be able to get away with zero maintenance costs.

    Your other options are really outside my area of knowledge but ultimately you are going to need detailed face to face advice on this on the benefits side at minimum but I suspect on the whole plan.

  • YadnadYadnad Member [under moderation] Posts: 2,856 Member [under moderation]
    edited August 2018
    Single mum currently on benefits esa,child tax credits housing benefit living in council property my health has become very bad an I’m no longer able to work diagnosed with me,fibro and a list of problems leaving me bed bound half the time.which means they will have to house me in a council bungalow which I’m planning or slowly but surely trying to provide a home for myself longeterm. I feel trapped that it’s benefits and being ill and my life can’t go no further I have found a piece of land to buy which is cheaply priced at 12k with the hope of buying it and in the long term living on it with planning  I have approached my bank for a loan which will lend me 7 k and already have £5kin savings my question am I allowed to buy land whilst on benefits also do I declare before I buy or after also if I buy it how will it effect benefits I have searched internet and citerzens advice all confusing 
    I would advise you to think very carefully about buying this land with the hope that planning permission would be granted.
    I sit on the Planning Committee of my local council and from experience not everything will turn into gold.
    Do some research, even visit the planning office at the local council and get some feedback as to the chances of getting the permissions.

    I also have developed a property a few years back which turned out to be a nightmare. It was in an AONB and they insisted how it was to be built, the materials to be used right down to the colour of the exterior paintwork.

    Do your homework first and then and only then consider buying it.
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