I was wondering if You Guys could give me some pointers on this as im stuck.

Client lives in property A which is a joint motgaed property with her husband. Client seperates from the husband and is given council property B.

Clients husband gets into financial difficulty as has an accident at work and carne afford to pay mortgage. He rents it out to cover the mortgage payments but doesnt make any profit. Property in negative equity now with 130K motgage 12k secured and worth 100k.

Client claims HB CTB for property B which is paid for a period based on her being a student and partner on IB CTC CB.

HB recive info that cilent is working as she started part time work but didnt tell them. HB suspended investigation full disclosure about property A and debt problems negative eqity.

? does property A count as capital even though its in negetive equity?

does property A count as capital even though its in negetive equity?

No. Any value given to a share in a property must firstly have 10% deducted and then any "encumbrance" (including outstanding mortgage) must also be deducted.

So, if it is genuinely a case of negative equity, the value for benefit purposes will be nil.

Thanks Kevin, client will be relived as nosp proceedings.

phil

The technical answer is that it is property but has no value.

If she is separated from her husband, why is his incapacity benefit being taken into account?