I hope someone can advise, I don't do so many pension credit claims, so this is a bit new to me.
My client is making a new claim for pension credit, following her husband's move into residential care.
However, she also has joint ownership of a cottage with her sister. This is rented out intermittently, but has been empty for the last 6 months or so. How will this be treated? Will they look at half the capital value or the income it generates - or both?
Can it be argued that they can't take the capital value into account as she is unable to sell it because her sister part owns it?

First, your client needs to see a solicitor, as the issues are complex. Questions that need answering are: who has a legal interest and who has a beneficial interest (and, in relation to the beneficial interest, in what proportion) in the property? What is the nature of the declaration (if there is one) on the land registry forms? What were the intentions of the parties at the time of the purchase of the property? A simple assumption of 50% interests is not a proper starting point. Is there a trust surrounding the property? No one can advise you accurately until these questions are answered and they are not always as straightforward as might first appear.

One thing is definite though; any rental income from the property is treated as capital and not income. And, if she has a beneficial interest, which she can realize (by asking a court to force a sale for example) then that is taken into account as capital but see the various provisions around disregards.

Thank you! Obviously more complicated than I had expected. I will pass on your comments to my client.