Proceeds from sale of former home disregarded where shared ownership planned?

Just checking whether anyone has experience of any cases where the proceeds arising from the sale of a home have been disregarded where the claimant intends to buy a shared ownership property.

Caller to our Helpline is in process of selling her current home.  Expects to have proceeds of £70K. Plans to use this equity to buy a housing association shared ownership property. Will have then no mortgage but hopes to claim HB for rent for the share she doesn’t own.

There will be a delay until shared ownership property is available. In the intervening period she hopes to rent privately and claim HB alongside her IS.

My gut feeling is that the capital arising from the sale of her current home can be temporarily disregarded under para 3 of schedule 10 of the IS Regs (and equivalent HB rules). The reg says this applies to any sum intended to be used for the “purchase of other premises” intended to be occupied as the home.

I just want to double check that this capital disregard can apply where someone is buying a share in their home rather than seeking to be the sole owner. Have any of you seen cases where this happened in practice? 

Derek

Yes, more than once. There’s never been a problem. I think she’ll be fine.

Thanks a lot, that’s good to know.

Derek

bit of a thread hi-jack but Derek I wouldn’t mind a chat with you about the welfare rights service your organisation provides.

could you give me an email?

my address is just my username here with a . after steven and then @enable.org.uk

I am not posting the full email as I have been told that’s how you end up with loads of spam.