DWP interest payments on property rebuilds

Could anyone possibly advise me if you can claim help with DWP interest payments for the rebuild of a house. If a structural survey is carried out it is likely to be condemned. The individual does not have buildings insurance in place, is in their 70s and on pension credit.

Will the DWP help with the interest payments on a loan. I am familiar with the rules on repairs but not in the case of a rebuild. Any information you may be able to provide will be much appreciated.

It is likely that a rebuild will cost between £100-150k

Many Thanks

I would say no because housing costs that are excluded include :mortages and loans taken out while in receipt of pension credit. You can ask your pension centre for an opinion but in my experience there is a reluctance to give advice because a situation is hypothetical and they will not be held to account if the client should act on their advice and then find he does not qualify.

You need to start with your local council housing standards department. They have discretion to help home owners with repairs etc. See copy and paste from the direct gov website below.

Help from your local council for home repairs and adaptation
Local authorities have a great deal of flexibility and freedom in providing discretionary assistance for repairs and adaptations. It is also for the local authority to decide the circumstances in which to give discretionary assistance, what form that assistance may take (eg, grants, loans, equity release schemes etc) and what, if any, conditions to attach.
The local authority will be able to tell you what policies they have in place to address private sector renewal in your area.

Failing that if the home is not habitable you may need to talk to your social housing team about rehousing your client. He may have to sell his home for a reduced price to reflect it’s current state and of course any capital may then affect his PC entitlement.
If they cannot help, the client may find assistance from the Elderly Accommodation Council 020 7820 1343. They provide free and independent advice.

Another thought. If the client (or partner) has got any connection with the armed services - even if just 1 weeks service - they may find The Royal British Legion a good source of help.
They have some sort of interest free loans scheme to help veterans keep their homes in good repair - but I don’t know if they would find the cost of a virtual rebuild beyond their remit!
I think the scheme operates on a no repayments basis and they reclaim their loan from the estate when a client dies.
You would need to check all of this out with RBL as my knowledge may be a little rusty.