Property/capital disregard for HB/ESA

Just a quick query. Sorry if this is obvious : ive had one of those days ( i call them “work” days ) !!

I have a client on IR(ESA) who has just inherited a house, and 15K in cash

She currently rents her house from LA and claims full HB + CTR

The probate is nearly done, and when she can access the cash she will spend 8K of it doing necessary work on the property and move in ASAP.

It will take 2 months or so to make the place habitable before she can move in.

I know there will be no deprivation/disposal issues regarding the capital however at what point does the value of her new property count against her current IR ESA entitlement and HB claim?

Technically she will own over 16K in property/Capital as she wont have yet moved into the property

I know if a property is up for sale it can be disregarded for 26 weeks, but im not sure how it works the other way round.

Does she cancel HB + ESA as soon as the property is accessible, and live off her capital and pay full rent until she moves in, or is there a disregard period.

I unfortunately dont have HB regs and im struggling to find out using CPAG.

Any help would be appreciated.

It depends on what you mean by habitable.

Schedule 6, para’28, HB Regs, capital to be disregarded.

28. Any premises which the claimant intends to occupy as his home to which essential repairs or alterations are required in order to render them fit for such occupation, for a period of 26 weeks from the date on which the claimant first takes steps to effect those repairs or alterations, or such longer period as is necessary to enable those repairs or alterations to be carried out.

We need to clone Nevip!

Every office should have one.

Thanks Paul, Greatly appreciated

Lol!  Now that’s a horrible thought.  I’d only end up arguing with myself.  And, it would only serve to confuse my mother and she’s confused enough already.