Housing Benefit and owned property equity

[Amethyst]

Just some work to prepare to appeal Housing and Council Tax benefit decision against any entitlement.





Citizens Advice

It is often the case that when a couple separate one party remains in the jointly owned property and one leaves. If the party that leaves then claims benefit, then the DWP / local authority may treat that person as having capital. For means tested benefits there are specific rules that should be applied when calculating the value of any equity in the property.



Firstly there is a theoretical split of the value equally between the owners. This will be done irrespective of the true proportion owned by each party. The DWP often stops at this point assessing a claimant’s capital as being their proportion of the total asset based on a valuation carried out by a district valuer. So, for example, where there are two joint owners with total equity in a home of £20,000 each party will be treated as having access to £10,000 irrespective of their actual shares. However, the Court of Appeal has now found that this rule applies only to property held under a joint tenancy, and not under a tenancy in common.



In Secretary of State for Work and Pensions v Hourigan [2002] the Court of Appeal upheld Commissioner Lloyd-Davies decision in CIS/5906/99 finding that the correct approach where owners do not own their undivided share jointly with other owners (e.g. beneficial owners / tenants in common). This means that the valuation rules do not apply to claimants who are not jointly entitled to the equitable interest in the same capital asset.



Case law has provided that a further element must be considered, once the above issue has been determined, to reach an accurate assessment of capital from that asset. CIS/391/92 provides useful guidance on such a valuation and suggests it should have regard to: there being a willing seller in the claimant, the state of the property market at the time of claim, costs of sale and of taking court action to force the other owner(s) to sell and having regard to the facts of the case whether there would be a market for such a property share. It is therefore possible to argue that a share may have a negligible value if there is a resident joint owner who refuses to sell or buy out the other share of a property. It is important to make a clear case for such a valuation since recent case law suggests that as long as a court is likely to order a sale in this situation, the valuation of any joint share is not likely to be reduced by any great extent (Wilkinson v CAO, Court of Appeal 24 March 2000).

[Amethyst]

Re: Housing Benefit and owned property equity

SECTION 6
Capital
Capital limit
43. For the purposes of section 134(1) of the Act as it applies to housing benefit (no entitlement to benefit
if capital exceeds prescribed amount), the prescribed amount is £16,000.
Calculation of capital
44.—(1) For the purposes of Part 7 of the Act (income-related benefits) as it applies to housing benefit, the
capital of a claimant to be taken into account shall, subject to paragraph (2), be the whole of his capital
calculated in accordance with this Part and any income treated as capital under regulation 46 (income treated
as capital).
(2) There shall be disregarded from the calculation of a claimant’s capital under paragraph (1), any capital,
where applicable, specified in Schedule 6.
Disregard of capital of child and young person
45. The capital of a child or young person who is a member of the claimant’s family shall not be treated as
capital of the claimant.
Income treated as capital
46.—(1) Any bounty derived from employment to which paragraph 8 of Schedule 4 applies and paid at
intervals of at least one year shall be treated as capital.
(2) Any amount by way of a refund of income tax deducted from profits or emoluments chargeable to
income tax under Schedule D or E shall be treated as capital.
(3) Any holiday pay which is not earnings under regulation 35(1)(d) (earnings of employed earners) shall
be treated as capital.
(4) Except any income derived from capital disregarded under paragraphs 1, 2, 4, 8, 14 or 25 to 28 of
Schedule 6, any income derived from capital shall be treated as capital but only from the date it is normally
due to be credited to the claimant’s account.
(5) In the case of employment as an employed earner, any advance of earnings or any loan made by the
claimant’s employer shall be treated as capital.
(6) Any charitable or voluntary payment which is not made or due to be made at regular intervals, other
than a payment which is made under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the
51
Macfarlane (Special Payments) (No. 2) Trust, the Fund, the Eileen Trust or the Independent Living Funds,
shall be treated as capital.
(7) There shall be treated as capital the gross receipts of any commercial activity carried on by a person in
respect of which assistance is received under the self-employment route, but only in so far as those receipts
were payable into a special account (as defined for the purposes of Chapter 4A of Part 8 of the Jobseeker’s
Allowance Regulations) during the period in which that person was receiving such assistance.
(8) Any arrears of subsistence allowance which are paid to a claimant as a lump sum shall be treated as
capital.
(9) Any arrears of working tax credit or child tax credit shall be treated as capital.
Calculation of capital in the United Kingdom
47. Capital which a claimant possesses in the United Kingdom shall be calculated—
(a) except in a case to which sub-paragraph (b) applies, at its current market or surrender value less—
(i) where there would be expenses attributable to sale, 10 per cent.; and
(ii) the amount of any encumbrance secured on it;
(b) in the case of a National Savings Certificate—
(i) if purchased from an issue the sale of which ceased before 1st July last preceding the date on
which the claim is made or treated as made, or the date of any subsequent revision or
supersession, at the price which it would have realised on that 1st July, had it been purchased
on the last day of that issue;
(ii) in any other case, at its purchase price.
Calculation of capital outside the United Kingdom
48. Capital which a claimant possesses in a country outside the United Kingdom shall be calculated—
(a) in a case where there is no prohibition in that country against the transfer to the United Kingdom of
an amount equal to its current market or surrender value in that country, at that value;
(b) in a case where there is such a prohibition, at the price which it would realise if sold in the United
Kingdom to a willing buyer,
less, where there would be expenses attributable to sale, 10 per cent. and the amount of any encumbrances
secured on it.
Notional capital
49.—(1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose
of securing entitlement to housing benefit or increasing the amount of that benefit except to the extent that
that capital is reduced in accordance with regulation 50 (diminishing notional capital rule).
(2) Except in the case of—
(a) a discretionary trust; or
(b) a trust derived from a payment made in consequence of a personal injury; or
(c) any loan which would be obtained only if secured against capital disregarded under Schedule 6; or
(d) a personal pension scheme or retirement annuity contract; or
(e) any sum to which paragraph 45(a) and 46(a) of Schedule 6 (disregard of compensation for personal
injuries which is administered by the Court) refers; or
(f) child tax credit; or
(g) working tax credit,
any capital which would become available to the claimant upon application being made, but which has not
been acquired by him, shall be treated as possessed by him but only from the date on which it could be
expected to be acquired were an application made.
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(3) Any payment of capital, other than a payment of capital specified in paragraph (4), made—
(a) to a third party in respect of a single claimant or a member of the family (but not a member of the
third party’s family) shall, where that payment is a payment of an occupational pension or is a
pension or other periodical payment made under a personal pension scheme, be treated as possessed
by that single claimant or, as the case may be, by that member;
(b) to a third party in respect of a single claimant or in respect of a member of the family (but not a
member of the third party’s family) shall, where it is not a payment referred to in sub-paragraph (a),
be treated as possessed by that single claimant or by that member to the extent that it is used for the
food, household fuel or, subject to paragraph (8), rent or ordinary clothing or footwear, of that
single claimant or, as the case may be, of any member of that family or is used for any council tax
or water charges for which that claimant or member is liable;
(c) to a single claimant or a member of the family in respect of a third party (but not in respect of
another member of the family) shall be treated as possessed by that single claimant or, as the case
may be, that member of the family to the extent that it is kept or used by him or used by or on
behalf of any member of the family.
(4) Paragraph (3) shall not apply in respect of a payment of capital made—
(a) under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special
Payments) (No. 2) Trust, the Fund, the Eileen Trust, the Independent Living Funds, the Skipton
Fund or the London Bombings Relief Charitable Fund;
(b) pursuant to section 2 of the 1973 Act in respect of a person’s participation—
(i) in an employment programme specified in regulation 75(1)(a)(ii) of the Jobseeker’s Allowance
Regulations;
(ii) in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations;
(iii) in the Intense Activity Period specified in regulation 75(1)(a)(iv) of those Regulations or in the
Intensive Activity Period for 50 plus; or
(iv) in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations;
(c) under an occupational pension scheme or in respect of a pension or other periodical payment made
under a personal pension scheme where—
(i) a bankruptcy order has been made in respect of the person in respect of whom the payment has
been made or, in Scotland, the estate of that person is subject to sequestration or a judicial
factor has been appointed on that person’s estate under section 41 of the Solicitors (Scotland)
Act 1980(a);
(ii) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the
creditors; and
(iii) the person referred to in (i) and any member of his family does not possess, or is not treated as
possessing, any other income apart from that payment.
(5) Where a claimant stands in relation to a company in a position analogous to that of a sole owner or
partner in the business of that company, he may be treated as if he were such sole owner or partner and in
such a case—
(a) the value of his holding in that company shall, notwithstanding regulation 44 (calculation of capital)
be disregarded; and
(b) he shall, subject to paragraph (6), be treated as possessing an amount of capital equal to the value
or, as the case may be, his share of the value of the capital of that company and the foregoing
provisions of this Section shall apply for the purposes of calculating that amount as if it were actual
capital which he does possess.
(6) For so long as the claimant undertakes activities in the course of the business of the company, the
amount which he is treated as possessing under paragraph (5) shall be disregarded.
(a) 1980 c. 46.
53
(7) Where a claimant is treated as possessing capital under any of paragraphs (1) to (3) the foregoing
provisions of this Section shall apply for the purposes of calculating its amount as if it were actual capital
which he does possess.
(8) In paragraph (3) “rent” means eligible rent less any deductions in respect of non-dependants which fall
to be made under regulation 74 (non-dependant deductions).
Diminishing notional capital rule
50.—(1) Where a claimant is treated as possessing capital under regulation 49(1) (notional capital), the
amount which he is treated as possessing—
(a) in the case of a week that is subsequent to—
(i) the relevant week in respect of which the conditions set out in paragraph (2) are satisfied; or
(ii) a week which follows that relevant week and which satisfies those conditions,
shall be reduced by an amount determined under paragraph (3);
(b) in the case of a week in respect of which paragraph (1)(a) does not apply but where—
(i) that week is a week subsequent to the relevant week; and
(ii) that relevant week is a week in which the condition in paragraph (4) is satisfied,
shall be reduced by the amount determined under paragraph (4).
(2) This paragraph applies to a benefit week where the claimant satisfies the conditions that—
(a) he is in receipt of housing benefit; and
(b) but for regulation 49(1), he would have received an additional amount of housing benefit in that
week.
(3) In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph
(1)(a) shall be equal to the aggregate of—
(a) the additional amount to which sub-paragraph (2)(b) refers;
(b) where the claimant has also claimed council tax benefit, the amount of any council tax benefit or
any additional amount of council tax benefit to which he would have been entitled in respect of the
benefit week to which paragraph (2) refers but for the application of regulation 39(1) of the Council
Tax Benefit Regulations 2006 (notional capital);
(c) where the claimant has also claimed income support, the amount of income support to which he
would have been entitled in respect of the benefit week to which paragraph (2) refers but for the
application of regulation 51(1) of the Income Support Regulations(a)(notional capital); and
(d) where the claimant has also claimed a jobseeker’s allowance, the amount of an income-based
jobseeker’s allowance to which he would have been entitled in respect of the benefit week to which
paragraph (2) refers but for the application of regulation 113 of the Jobseeker’s Allowance
Regulations (notional capital).
(4) Subject to paragraph (5), for the purposes of paragraph (1)(b) the condition is that the claimant would
have been entitled to housing benefit in the relevant week but for regulation 49(1), and in such a case the
amount of the reduction shall be equal to the aggregate of—
(a) the amount of housing benefit to which the claimant would have been entitled in the relevant week
but for regulation 49(1) and, for the purposes of this sub-paragraph, if the relevant week is a week
to which regulation 80(4)(a) refers (calculation of weekly amounts), that amount shall be
determined by dividing the amount of housing benefit to which he would have been so entitled by
the number of days in that week for which he was liable to make payments in respect of the
dwelling he occupies as his home and multiplying the quotient so obtained by 7;
(b) if the claimant would, but for regulation 39(1) of the Council Tax Benefit Regulations 2006, have
been entitled to council tax benefit or to an additional amount of council tax benefit in respect of the
benefit week which includes the last day of the relevant week, the amount which is equal to—
(a) S.I. 1987/1967; the relevant amending Instrument is S.I. 1990/1776.
54
(i) in a case where no council tax benefit is payable, the amount to which he would have been
entitled; or
(ii) in any other case, the amount equal to the additional amount of council tax benefit to which he
would have been entitled;
and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount
shall be determined by dividing the amount of the council tax benefit to which he would have been
so entitled by the number equal to the number of days in the part-week and multiplying the quotient
so obtained by 7;
(c) if the claimant would, but for regulation 51(1) of the Income Support Regulations, have been
entitled to income support in respect of the benefit week, within the meaning of regulation 2(1) of
those Regulations (interpretation), which includes the last day of the relevant week, the amount to
which he would have been entitled and, for the purposes of this sub-paragraph, if the amount is in
respect of a part-week, that amount shall be determined by dividing the amount of the income
support to which he would have been so entitled by the number equal to the number of days in the
part-week and multiplying the quotient so obtained by 7;
(d) if the claimant would, but for regulation 113 of the Jobseeker’s Allowance Regulations, have been
entitled to an income-based jobseeker’s allowance in respect of the benefit week, within the
meaning of regulation 1(3) of those Regulations (interpretation), which includes the last day of the
relevant week, the amount to which he would have been entitled and, for the purposes of this subparagraph,
if the amount is in respect of a part-week, that amount shall be determined by dividing
the amount of the income-based jobseeker’s allowance to which he would have been so entitled by
the number equal to the number of days in the part-week and multiplying the quotient so obtained
by 7.
(5) The amount determined under paragraph (4) shall be re-determined under that paragraph if the
claimant makes a further claim for housing benefit and the conditions in paragraph (6) are satisfied, and in
such a case—
(a) sub-paragraphs (a) to (d) of paragraph (4) shall apply as if for the words “relevant week” there were
substituted the words “relevant subsequent week”; and
(b) subject to paragraph (7), the amount as re-determined shall have effect from the first week
following the relevant subsequent week in question.
(6) The conditions are that—
(a) a further claim is made 26 or more weeks after—
(i) the date on which the claimant made a claim for housing benefit in respect of which he was
first treated as possessing the capital in question under regulation 49(1);
(ii) in a case where there has been at least one redetermination in accordance with paragraph (5),
the date on which he last made a claim for housing benefit which resulted in the weekly
amount being re-determined; or
(iii) the date on which he last ceased to be entitled to housing benefit,
whichever last occurred; and
(b) the claimant would have been entitled to housing benefit but for regulation 49(1).
(7) The amount as re-determined pursuant to paragraph (5) shall not have effect if it is less than the
amount which applied in that case immediately before the redetermination and in such a case the higher
amount shall continue to have effect.
(8) For the purposes of this regulation—
(a) “part-week” in paragraph (4)(b) means a period of less than a week for which council tax benefit is
allowed;
(b) “part-week” in paragraph (4)(c) and (d) means—
(i) a period of less than a week which is the whole period for which income support, or, as the
case may be, an income-based jobseeker’s allowance, is payable; and
(ii) any other period of less than a week for which it is payable;
55
(c) “relevant week” means the benefit week in which the capital in question of which the claimant has
deprived himself within the meaning of regulation 49(1)—
(i) was first taken into account for the purpose of determining his entitlement to housing benefit;
or
(ii) was taken into account on a subsequent occasion for the purpose of determining or redetermining
his entitlement to housing benefit on that subsequent occasion and that
determination or redetermination resulted in his beginning to receive, or ceasing to receive,
housing benefit;
and where more than one benefit week is identified by reference to heads (i) and (ii) of this subparagraph
the later or latest such benefit week;
(d) “relevant subsequent week” means the benefit week which includes the day on which the further
claim or, if more than one further claim has been made, the last such claim was made.
Capital jointly held
51. Except where a claimant possesses capital which is disregarded under regulation 49(5) (notional
capital) where a claimant and one or more persons are beneficially entitled in possession to any capital asset
they shall be treated as if each of them were entitled in possession to the whole beneficial interest therein in
an equal share and the foregoing provisions of this Section shall apply for the purposes of calculating the
amount of capital which the claimant is treated as possessing as if it were actual capital which the claimant
does possess.
Calculation of tariff income from capital
52.—(1) Except where the circumstances prescribed in paragraph (2) or (4) apply to the claimant, where
the claimant’s capital calculated in accordance with this Part exceeds £3,000 it shall be treated as equivalent
to a weekly tariff income of £1 for each complete £250 in excess of £3,000 but not exceeding £16,000.
(2) Where the claimant—
(a) is aged 60 or over or has a partner who is aged 60 or over;
(b) is not a person to whom the circumstances prescribed in paragraph (4) apply; and
(c) has capital which, calculated in accordance with this Part, exceeds £6,000,
that capital shall be treated as equivalent to a weekly income of £1 for each complete £250 in excess of
£6,000 but not exceeding £16,000.
(3) Where the circumstances prescribed in paragraph (4) apply to a claimant and that claimant’s capital
calculated in accordance with this Part exceeds £10,000, it shall be treated as equivalent to a weekly tariff
income of £1 for each complete £250 in excess of £10,000 but not exceeding £16,000.
(4) For the purposes of paragraph (3), the prescribed circumstances are that the claimant—
(a) occupies residential accommodation as his home; or
(b) is a person—
(i) to whom on 3rd October 2005 paragraph (2) of regulation 7 of the former regulations(a) as in
force on that date applied; or
(ii) to whom on 3rd October 2005, paragraph (5) or paragraph (7) of regulation 7 of those
Regulations as in force on that date applied and continues to apply;
(5) For the purposes of paragraph (4), the claimant shall be treated as—
(a) occupying residential accommodation as his home; or
(b) a person to whom regulation 9(1A) as inserted by paragraph 9(3)(a) of Schedule 3 to the
Consequential Provisions Regulations, applies; or
(a) S.I. 1987/1971.
56
(c) a person to whom regulation 9(6) as inserted by paragraph 9(5)(a) of Schedule 3 to the
Consequential Provisions Regulations, applies; or
(d) a person to whom regulation 9(6) as inserted by paragraph 9(7)(a) of Schedule 3 to the
Consequential Provisions Regulations, applies,
in any period during which he is treated as occupying the accommodation as his home pursuant to regulation
7(12), (13) or (17).
(6) Notwithstanding paragraphs (1), (2) and (3) where any part of the excess is not a complete £250 that
part shall be treated as equivalent to a weekly tariff income of £1.
(7) For the purposes of paragraphs (1), (2) and (3), capital includes any income treated as capital under
regulation 46 (income treated as capital).
(8) For the purposes of this regulation and subject to paragraph (9), “residential accommodation” means
accommodation which is provided by an establishment—
(a) under sections 21 to 24 of the National Assistance Act 1948(a) (provision of accommodation) or
under section 59 of the Social Work (Scotland) Act 1968(b) (provision of residential and other
establishments) where board is not available to the claimant and the home in which the
accommodation is provided is either owned or managed or owned and managed by a local
authority;
(b) which is managed or provided by a body incorporated by Royal Charter or constituted by Act of
Parliament (other than a social services authority) and provides both board and personal care for the
claimant; and in this sub-paragraph, “personal care” means care which includes assistance with
bodily functions where such assistance is required;
(c) which is an Abbeyfield Home,
and in this definition, “board” refers to the availability to the claimant in the home in which his
accommodation is provided of cooked or prepared food, where the food is made available to him in
consequence solely of his paying the charge for the accommodation or any other charge which he is required
to pay as a condition of occupying the accommodation, or both those charges and is made available for his
consumption without any further charge to him.
(9) Paragraph (8) shall not apply to residential accommodation of the type referred to in sub-paragraphs
(a) to (c) of paragraph (8) where such accommodation is residential accommodation for the purpose of
regulation 9 unless the claimant is a person to whom paragraphs 10, 11 or 12 of Schedule 3 to the Social
Security (Care Homes and Independent Hospitals) Regulations 2005 apply(c).
(a) 1948 c. 29; Section 21 was amended by the Social Work (Scotland) Act 1968 (c. 49), section 95(2) and Schedule 9; the Local Government
Act 1972 (c. 70), sections 195 and 272, Schedule 23, paragraph 2 and Schedule 30; the National Health Service Reorganisation Act 1973
(c. 32), section 58 and Schedule 5, paragraph 44; the Housing (Homeless Persons) Act 1977 (c. 48), section 20(4) and the Schedule; the
Children Act 1989 (c. 41), section 108(5) and Schedule 13, paragraph 11(1); the National Health Service and Community Care Act 1990
(c. 19), sections 42(1) and 66(1) and (2) and Schedule 9, paragraph 5(1) to (3) and Schedule 10 and the Community Care (Residential
Accommodation) Act 1998 (c. 19), section 1. section 22 was amended by section 39(1) of, and paragraph 6 of Schedule 6 to, the Ministry
of Social Security Act 1966 (c. 20), by section 35(2) of, and paragraph 3(b) of Schedule 7 to, the Supplementary Benefits Act 1976 (c.
71), by section 20 of, and paragraph 2 of Schedule 4 to, the Social Security Act 1980 (c. 30), and by section 86 of, and paragraph 32 of
Schedule 10 to, the Social Security Act 1986 (c. 50). Section 24 was amended by the National Assistance (Amendment) Act 1959 (c. 30),
section 1(1); the National Health Service (Scotland) Act 1972 (c. 58), Schedule 6 paragraph 82; the Local Government Act 1972 (c. 58),
Schedule 6 paragraph 82; the Local Government Act 1972 (c. 70), Schedule 23 paragraph 2; the National Health Service Reorganisation
Act 1972 (c. 32), Schedule 4 paragraph 45 and the Housing (Homeless Persons) Act 1977 (c. 48), Schedule.
(b) 1968 c. 49.
(c) S.I. 2005/2687.

[Amethyst]

Re: Housing Benefit and owned property equity

I think these are relevant bits


43. For the purposes of section 134(1) of the Act as it applies to housing benefit (no entitlement to benefit if capital exceeds prescribed amount), the prescribed amount is £16,000.

(9) Any arrears of working tax credit or child tax credit shall be treated as capital.
Calculation of capital in the United Kingdom

47. Capital which a claimant possesses in the United Kingdom shall be calculated—
(a) except in a case to which sub-paragraph (b) applies, at its current market or surrender value less—
(i) where there would be expenses attributable to sale, 10 per cent.; and
(ii) the amount of any encumbrance secured on it;


51. Except where a claimant possesses capital which is disregarded under regulation 49(5) (notional capital) where a claimant and one or more persons are beneficially entitled in possession to any capital asset they shall be treated as if each of them were entitled in possession to the whole beneficial interest therein in an equal share and the foregoing provisions of this Section shall apply for the purposes of calculating the mount of capital which the claimant is treated as possessing as if it were actual capital which the claimant does possess.


Calculation of tariff income from capital
52.—(1) Except where the circumstances prescribed in paragraph (2) or (4) apply to the claimant, where the claimant’s capital calculated in accordance with this Part exceeds £3,000 it shall be treated as equivalent to a weekly tariff income of £1 for each complete £250 in excess of £3,000 but not exceeding £16,000.





http://www.opsi.gov.uk/si/si2006/uksi_20060213_en.pdf

I can't find section 134(1) of the social security act - to which I think para 43 applies

[Amethyst]

Re: Housing Benefit and owned property equity

134 Arrangements for housing benefit

(1) Housing benefit provided by virtue of a scheme under section 123 of the Contributions and Benefits Act (in this Act referred to as “the housing benefit scheme”)—
(a) is to be in the form of a rate rebate funded and administered by the appropriate rating authority, if it is in respect of payments by way of rates;
(b) is to be in the form of a rent rebate or, in prescribed cases, of a rent allowance, funded and administered by the appropriate housing authority, if it is in respect of payments, other than payments by way of rates, to be made to a housing authority; and
(c) is in any other case to be in the form of a rent allowance funded and administered by the appropriate local authority.
(2) The rebates and allowances referred to in subsection (1) above may take any of the following forms, that is to say—
(a) a payment or payments by the authority to the person entitled to the benefit;
(b) a reduction in the amount of any payments which that person is liable to make to the authority by way of rent or rates; or
(c) such a payment or payments and such a reduction;
and in any enactment or instrument (whenever passed or made) “pay”, in relation to housing benefit, includes discharge in any of those forms.

[Amethyst]

Re: Housing Benefit and owned property equity

oh fecking hellllll someone decipher this lot for me I'm having a panic.

Okay the property joint owned (50/50) with ex is valued at £185,000.

The mortgage redemption statement which has been sent to the Housing Benefits office shows the outstanding as £109,500.

This leaves a total of £75500

I need to know how they deal with debts due out of that amount.

Formally there is a £6k second charge on property which takes it to £69500.

So I assume they take this divide by two to get my equity (disregarding the 30k of additional debt which is going to be paid out of house sale) - so my equity is £35000 to all intents and purposes.

If they do take the debt into account, which I cant find out if they do, then half is mine, so that takes my equity to £20,000. Which is £4k over the £16,000 limit.

The house won't be sold till approx October,(ex cant afford to buy me out and won't sell until then) I have council tax threatening court (cause council tax benefit is applied on same basis as housing benefit) and I owe Jan 1st to now in rent at £395 a month.


So I am having a major wobble.

Income support have disregarded the equity until september 2008. So thats okay for the moment.

[CYNthesys]

Re: Housing Benefit and owned property equity

Ame, sorry I dont know the answers on this, but I do know of someone who was in a similar position recently. She got in touch with CLS who in turn referred her to DAWN Advice. DAWN Advice are representing this person in tribunal proceedings

[Amethyst]

Re: Housing Benefit and owned property equity

DAWN (Advice) Ltd: about us

when the letter comes through confirming everything I'll get in touch thanks Cyn.

[CYNthesys]

Re: Housing Benefit and owned property equity

Sorry, should be Community Legal Advice, not CLS