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Shared Ownership Purchase and IR ESA

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6 years 10 months ago #189741 by Chris
Dear All,

I'm currently starting the process of buying a property through shared ownership scheme for disabled people (HOLD) with Advance. I wondered if anyone could advise, or reassure me, on the following.

Purchasing my main home will change my capital (my £6,000 savings will be used towards deposit) and debts (mortgage), so will it affect my IR ESA? I had a conversation with a DWP agent who suggested, but could not guarantee, that as I'm purchasing my main home in order to meet needs due to long-term medical disabilities, it will not affect my future IR ESA payments.

Also, as I currently have £6,000 savings, this is insufficient to pay for my deposit. So my family is looking to help pay for the rest of the deposit and fees (the additional amount required is circa £11,000) Will this payment from my family towards the purchase of the property affect my future IR ESA payments? The DWP agent suggested that it is legal if my family pays directly the parties, e.g. sollicitor. If the family money was paid into my account, I would need to inform DWP of money coming in, money going out, and why. As it is for the purchase of my main home, it would not affect my IR ESA, says the agent, so long as I am clear about what the money is there for, and how long it has been in my possession. This is why the agent suggested, it would be less 'paperwork' if the money was paid directly to the sollicitor etc., in perfect legality.

Other information: mortgage information supplied by Mysafehome. £100,000 mortgage, interest only, 10% depositi required.
I receive IR ESA (as opposed to contribution based) because I didn't claim for help immediately after falling ill after working full time for over 10 years. I lived on my savings for 2 years, then when I claimed for ESA, I was informed I hadn't contributed sufficient NI in last 2 years! so was granted IR ESA, not contribution based ESA. Could the decision be reviewed, as I can clearly demonstrate a) I fell ill and could not work b) I lived on my savings for 2 years? Would I want to ask a transfer to contribution based ESA anyway? I also receive PIP High Rate.

Any help (other than the DWP DM guide, which is so complex and Chap 52 is almost 200 pages long!) would be very appreciated.

Chris

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6 years 10 months ago #189756 by Gordon
Replied by Gordon on topic Shared Ownership Purchase and IR ESA
Christophe

Dealing with your questions out of order. There is no opportunity for you revisit being paid ESA(CB), the rules are very simple either you received Contributions in the required Tax Years or you did not. I'm afraid your being ill and loving off of your savings does not count, I'm in the same boat albeit due to incorrect advice by the CAB.

We can't give detailed financial advice on the forum so I am limited in what I can tell you.

Issues with assets and savings are at the discretion of a Decision Maker, they have rules to follow but some flexibility in how they apply them, as a result there is no guarantee that two cases will be treated in the same way.

As a general rule, money paid directly to a third party by your friends and relatives will not have any effect of your ESA(IR), if it is paid to you then it becomes your asset, your savings and it has the potential to cause you problems.

The house you live in is not normally counted as an asset. There are rules about selling and purchasing houses, but this is definitely not an area that we are competent in so I would recommend that you get face to face advice. Do an internet search for "welfare advice" with your postcode, town or county.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Carolasks

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6 years 9 months ago #189850 by Chris
Replied by Chris on topic Shared Ownership Purchase and IR ESA
Thank you for your quick response, and useful information.

Chris

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