Universal credit when father helps daughter buy a new home

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Sailor12to4
Sailor12to4 Online Community Member Posts: 3 Listener
edited January 2022 in Universal Credit (UC)
I suspect this has been asked before but here goes- My daughter has a full PIP and gets universal credit. After a spilt with her ex partner they are selling their home. My daughter is planning on using her share of the proceeds (capital) to buy another home (within the allowed 6 months) - she has found a new home and paid a reservation fee but is £20k short which I propose paying by giving £20k to the lawyer dealing with the purchase of the new home - will my £20k contribution result in my daughter losing her universal credit - thanks in advance

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  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited January 2022
    No. If you pay it direct to the lawyer it will be no problem.

    It seems from other threads that some lawyers will not allow this and will insist that you pay it to her and then she pays it to the lawyer. Provided she receives it and passes it on within her monthly UC assessment period it will still not be a problem. It is capital in her account on the last day of the assessment period that would be a problem.

    Easiest if lawyer will accept money directly from you.
  • Sailor12to4
    Sailor12to4 Online Community Member Posts: 3 Listener
    Hi Calcotti
    Thank you for the quick response - I will put the matter to the lawyer hopefully she will agree with you - thanks again - BTW I found info on a www.gov.uk web page that stated the seller (on UC) has 6 months to use the capital to buy another property - but subsequently cannot find this page - could you perhaps help me by pointing me in the right direction - many thanks
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited January 2022
    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1042621/admh2.pdf
    Paragraph H2119 and H2120

    Note that the second paragraph allows for an extension to the six month period if a Decision Maker considers it reasonable to do so.
  • Sailor12to4
    Sailor12to4 Online Community Member Posts: 3 Listener
    edited January 2022
    Thank you very much -

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