Wonder if anyone can help me with this one.
Couple in receipt of PC (GC) including mortgage interest. They have transferred the mortgage (and deeds) in to their daughter's name. They still reside in the house and she lives elsewhere.
Are they still able to continue to receive interest payments if they no longer "own" the property even though it is their only residence? They are still receiving interest payments in their PC but I don't want them to be incurring any overpayment.
Any assistance would be gratefully received.

The transfer can only have been made with the consent of the mortgage lender who would have wished to be assured that the payments would continue before agreeing. What was agreed between them?

The regualtions say basically that you get housing costs if you are liable for them , or if the person who is liable for them is not paying them and it is the only way you can stay there (or another which does not apply). They are not liable for the mortgage under the first head as they are no longer parties (I assume - just what was the deal with the lender?). The second is meant to be for deserted wives/women with children, not people who have for no good reason given their house away.

The usual reason is to get rid of both the house and the mortgage.

What were they all thinking of? What a stupid thing to do and what will the mortgage lender say if they know the daughter is not paying the mortgage and why should we all pay it for her? It's her problem now. I feel sorry for your clients - I imagine their daughter walked all over them on this one - but I really don't like it a bit.

I have been led to believe that the mortgage company was aware of the situation and it was done with their consent. Apparently the transfer was carried out due to the couple having debts and being advised that this would prevent creditors putting charges against the property.
My concern is that they are incurring an overpayment of PC.

Are they in an AIP?
Have they told the DWP?

My concern is that it is a voidable transaction carried out with intention to defraud creditors and could be set aside if a creditor made them bankrupt.