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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11135
Experience:  30 years as a practising solicitor.
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benefits system when selling and buying a flat

Resolved Question:

would like to move home but am on income support and DLA. I bought my studio flat from the council 9 years ago for £36,100 and would like to move to 1 bed flat nearer my parents. Is this ok with the government?Expect to sell old flat for around 135/140k and by new flat for around 130/135k so that I have money for legal fees.

Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

What is your concern with the government?

-Could you explain your situation a little more?

Customer: replied 3 years ago.

My parents gave me the money to buy the flat and if I sell it I will have made a lot of money before I then spend it on a new flat. The government does not let people living off benefits have large sums of money in their bank accounts.Is there any provision for this while you are buying and selling? Also how much savings is a disabled person living soully on benefits allowed to have before it affects their benefits? Is there an amount of time that is exempt while buying and selling?Will there be an investigation by the benefits official and/or forms to fill out? Do I need to declare anything or contact officials about this? I do not know the law regarding these factors.

Expert:  JGM replied 3 years ago.
If the capital derived from the sale of your existing property is earmarked for the purchase of another, it is exempt for 26 weeks so your benefits won't be affected as long as you buy another property with the capital within the 26 week period.

There should be no paperwork has to be generated by this although the benefits agency might want a letter from your solicitor confirming the position.
JGM and other Scots Law Specialists are ready to help you
Customer: replied 3 years ago.

Hi thanks for info. could you tell me how much savings a disabled person is allowed to have ordinarily before it affects benefits as I may have some money left over from moving flat. Also, would it be ok to move slightly out of Edinburgh eg Musselburgh?


Much appreciate the help, Lesley.

Expert:  JGM replied 3 years ago.
I understand the current limit on savings in £16000.

Where you live doesn't matter.
Expert:  JGM replied 3 years ago.
Sorry to clarify savings won't affect your DLA but it will affect your entitlement to income support.
Customer: replied 3 years ago.

so do you know how much before it affects income support please?

Expert:  JGM replied 3 years ago.
If your savings exceed £16000 you would no longer qualify for income support.
Customer: replied 3 years ago.

many thanks you have been most helpful!!!