Housing benefit/deprivation of capital

oasis123456
oasis123456 Online Community Member Posts: 2 Listener
edited June 2023 in Benefits and income
Hi I will be selling my house and renting. The reason for this is to pay my ex back. He gifted the deposit for my house and now wants it back. The solicitors can't pay him direct, the equity from the sale of the house has to come to my bank account first. Will housing benefit see this as an OK use of the money and award me housing benefit for the house I will be renting?

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,456 Championing
    If you're working age then unless you're already claiming housing benefit then you will not be able to make a new claim. Instead you will need to claim Universal Credit for help with any rent. Whether there's any entitlement will depend on your circumstances.

    Paying off debt isn't seen as deprivation of capital for UC purposes, however, there could be issues with this, if you don't have proof that you owe the money to your ex.
  • oasis123456
    oasis123456 Online Community Member Posts: 2 Listener
    The money officially went down as a gift for mortgage purposes
  • poppy123456
    poppy123456 Online Community Member Posts: 64,456 Championing
    There’s a big difference between a gift and a loan. A gift means, it’s a gift and usually you don’t need to repay a gift back. 

    There maybe issues here if she uses the capital from the sale of the house to repay that gift. 

    The money from the sale of the house will need to be reported. It will be down to a decision maker to make the final decision. 
  • calcotti
    calcotti Online Community Member Posts: 10,000 Championing
    If he gifted the money he has no right to have it repaid.
  • 2oldcodgers
    2oldcodgers Posts: 739 Connected
    calcotti said:
    If he gifted the money he has no right to have it repaid.
    Absolutely!! Once a gift is made and providing that there is no documentation describing what is to happen if the house is sold then there is no legal redress by the ex to collect on that gift. It should have been stated at the time that it was a loan that was to be repaid....................................

Categories