Selling my home

Katrina65
Katrina65 Online Community Member Posts: 30 Connected
in Employment and Support Allowance (ESA)
I currently have some equity in my home but have a mortgage I cannot keep up anylonger. I claim ESA and PIP. The only solution we can come up with is that I buy a smaller property (I am only in a 3 bed anyway) and my daughter obtains the mortgage as I am 59 and won’t qualify for it. This would mean giving all of the equity to my daughter. Would I be able to continue to claim esa? Many thanks 

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    If any part of your ESA is Income Related then you can't just give away the equity because it could be seen as deprivation of capital. 
  • Katrina65
    Katrina65 Online Community Member Posts: 30 Connected
    What if it is jointly owned? 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Jointly owned is different but would you need a mortgage for that? 
  • Katrina65
    Katrina65 Online Community Member Posts: 30 Connected
    Yes no where near enough to buy without. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Buying a home together for you to live in is fine. When you sell your current home, the equity in it can be disregarded for 6 months, sometimes longer if you plan on buying another home. You will be asked for proof that you're planning on buying another home and it will be down to a decision maker from ESA to make the final decision. 

    What you can't do is give the money away to your daughter for her to get a mortgage in her name only. This would be treated as deprivation of capital. 
  • Katrina65
    Katrina65 Online Community Member Posts: 30 Connected
    Many thanks for you advice much appreciated. 

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