Look at ESA Regs, schedule 9, para 2, and CIS/8475/95. paras 16 to 18. The property should be disregarded for 26 weeks or longer: it's what's reasonable in the circumstances. See if you can get confirmation that she's on the waiting list to have the premises or herself assessed for needs- Social Services? (Big waiting lists, I know). Go for reconsideration rather than appeal at this stage. They should cave.
Here's a couple of useful links:
http://www.opsi.gov.uk/si/si2008/uksi_20080794_en_25#sch9
http://www.rightsnet.org.uk/pdfs/cmmr_upload/cis/cis847595.doc Okay, so it's IS, but exactly the same principles apply to ESA.
Cut and paste the regs right back at 'em.
This is from the DMG: 52551 The value of any premises which the claimant has acquired with the intention of living in as their home within 26 weeks of the date of acquisition should be disregarded. Where the claimant intends to live in the premises but it will be later than 26 weeks from acquisition, then a longer period can be considered where it is reasonable to enable the claimant to obtain possession and begin occupation1. 1 ESA Regs, Sch 9, para 2
You might wish to quote that back at 'em too.
Good luck.
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