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Top Pension Credit topic #438

Subject: "Income from property" First topic | Last topic
Judith and John
                              

Benefits Take-Up Worker, Oldham CAB
Member since
10th May 2005

Income from property
Fri 24-Jun-05 11:26 AM

Client's income is £68.29 SRP + £15 per week rent from a property which she owns. She has been turned down for Pension Credit because she has an assumed income from the rented property of £96 per week.

It appears that the tenant is a protected tenant, and that sale value of house might therefore be fairly low - and a rent increase difficult to achieve. The tenant has lived in the property all her life and is now over 80 and frail.

Client argues that income from property ought to be value of rent, not value of property - if not permanently, then at least until the property is sold - as this is her actual income.

The Pensions Service say that if the tenant was a close relative over 60, the value of the property would be disregarded. Client is not related to the tenant, but does feel a sense of responsibility towards her.

Client has requested a reconsideration.

Any suggestions on how further I can develop the argument (any case law or similar experiences?).

Thanks.

  

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Replies to this topic
RE: Income from property, Gareth Morgan, 24th Jun 2005, #1
RE: Income from property, Judith and John, 24th Jun 2005, #2
RE: Income from property, Judith and John, 24th Jun 2005, #3
      RE: Income from property, Gareth Morgan, 24th Jun 2005, #4
           RE: Income from property, Judith and John, 24th Jun 2005, #5

Gareth Morgan
                              

Managing Director, Ferret Information Systems, Cardiff
Member since
20th Feb 2004

RE: Income from property
Fri 24-Jun-05 01:26 PM

That's a valuation of £198,000 (assuming no other capital).

Is that about the figure for a normal property of that type without sitting tenant?

  

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Judith and John
                              

Benefits Take-Up Worker, Oldham CAB
Member since
10th May 2005

RE: Income from property
Fri 24-Jun-05 02:26 PM

Is it? £96/500 = £48,000 - ? Have I got that wrong?!

  

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Judith and John
                              

Benefits Take-Up Worker, Oldham CAB
Member since
10th May 2005

RE: Income from property
Fri 24-Jun-05 02:27 PM

Sorry - 96 x 500, not divided!

  

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Gareth Morgan
                              

Managing Director, Ferret Information Systems, Cardiff
Member since
20th Feb 2004

RE: Income from property
Fri 24-Jun-05 03:42 PM

Oops, I knew I should have used a computer.

£54,000 including the 6K disregard.

Does that make sense as a valuation?

  

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Judith and John
                              

Benefits Take-Up Worker, Oldham CAB
Member since
10th May 2005

RE: Income from property
Fri 24-Jun-05 04:19 PM

Yes - the client says so - if bearing in mind that the property is in a poor state of repair, but not considering that the property has a sitting tenant in it.

She thinks that if both factors are considered, then it might fetch £25,000 - I've no idea if that's realistic - ??!

  

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Top Pension Credit topic #438First topic | Last topic