I have a client who bought a house in a run down area in 1995. He has never lived in the property and lived with his parents. The property was not fit to live in and needed urgent repairs. My client could not afford the mortgage and his father agreed to take over the property, paying the mortgage and carrying out the repairs on an understanding that the house would be considered as his and his father would be the sole benificiary of any gain from the property.
This wasn't done legally because of the cost.
My client moved out of his fathers home last year,2003, he has nothing to do with the house he owns as the father pays all the bills etc.
Housing benefit seemed to have accepted our explanation and took a signed statement from clients father as evidence. We quoted Commissioners Decision
JSA however are treating the house as his and as capital and have stopped his claim to JSA.
Any other regs that can be used in this situation. I would be most grateful
Trish Martin

Only capital of which the claimant is the beneficial owner is taken into account. The beneficial owner may or may not also be the legal owner. In your case I would be arguing that the father was the beneficial owner of the overwhelming share of the propery because he had paid the mortgage and paid for improvements, notwithstanding the fact that the client is the 100% legal owner. Moreover, if the father could not or would not buy out the client's smaller share, the value of the client's share should be assessed as nil because a willing buyer could not realistically be found for it on the open market.

See DMG 29070 et seq

Hi Brian
Thank you for giving me a teensy bit of hope! I was beginning to despair.My client 's father can't buy him out now as it will be treated as deprivation of capital, but i'm definately going to argue along the beneficial owner line.
Both Housing benefit and JSA are refusing to pay now.
Thanks again
Trish

Dont know which CD you quoted but you might have some mileage in CSB/200/1985 where the Commissioner gave some useful guidance re equity and beneficial ownership.

Thanks . I have had a look at that decision and I have got some mileage to go on there. Anything to throw at their legal department.
Trish

If you could send me a copy of that decision I would be most grateful. That's if you have it. trish.martin@williamsutton.org.uk
Trish

CSB/200/1985 is available here http://www.rightsnet.org.uk/pdfs/CSB_200_85.pdf