iresa and sudden home ownership and rent council tax

Hi,

No, you're wrong it wouldn't stop you from claiming IRESA. Many people own their own home and claim Income related benefits. What could be a problem though is the person that's buying the house for you. If this person is claiming benefits theirself, or even for future care reasons. For EG, if this person became ill and needed care they would then have to pay for this care theirself because they gave away that money and deprived theirself of capitol in order to claim benefits. DWP may also want to know the details of how you got the house in the first place and prove it was a gift. Hope this helps.

Hi Ian, I was in this position some years back, living in unsuitable upstairs flat, with ASB happening around me, my parents came into money, and wanted to help me, as was obvious I would never get well living in those conditions. They bought a 50% share of a shared ownership house for me, the crucial thing is, they need to buy, and the money must not go via you, or your bank account, as then it is your capital, and will be counted. Plus, as Denise says they need to make sure it doesn't give them any benefit issues. Also, if they gift you property, which is in effect what they are doing there may be inheritance duty issues, or tax, they will need to check this out as well. Hope this helps, and good luck 

Also, owning your own home doesn't stop you getting IR Esa, only if you own other property, this is capital which affects what you can get

Another thing to think about here would be the repair costs if anything happens. Would you be able to afford these repairs? When we rent it's not something we ever give any thoughts to when something breaks we just call the landlord or housing etc. All these things need to be thought through too.

Yep, a new boiler recently cost me £3000, you need to make sure you have enough money coming in, otherwise you can end up taking loans at high interest

Hi Ian,as it stood, when I was in this situation,because I could show that the share in the house was bought for me by my parents,it did t affect my entitlement to means tested benefits. The crucial thing was, I did not have the money at any time, the half a house was bought by my parents, then put into my name, as a gift. So I carried on getting HB,( for the rent on the other half) council tax benefit, and income support, as it was then. 

I would really advise you to talk it through face to face with a CAB adviser or similar, as it is complicated, and there are also tax and inheritance duty issues, and I believe some rules are different if the person isn't a relative, especially inheritance duty, which isn't nice to think about, but if either you or the donor dies within so many years, it might apply.

on the plus side, for me it has been a really good move, my health has improved, due to less stress, and being on the ground floor, as a result I am now back in part time work. Good luck