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Capital - unhabitable property

Greeny
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Salford Welfare Rights (Health)

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Joined: 3 April 2017

Hello. Just putting feelers out in advance of meeting a difficult client appointment next week. She is already in arrears for several months ‘bedroom tax’ and has possession hearing listed next month for arrears and NDD.. Her social worker has submitted DHP so that wasn’t the main issue I was asked to see her about.  I was expecting to appeal a fail to attend PIP medical as well as start a new claim to stop NDD however there has been a terrible twist which she isn’t actually aware of yet. She is carer for her son with downs syndrome, income CA and IS (currently suspended - although not seen the letter yet) and she has been getting HB and CTR. However, a property she bought and abandoned years ago has surfaced, the JC+ are asking more info and HB have found out about it.
I believe it is a shell - not seen it but notes indicate she has said it was involved in a fire and has been inhabitable.  There are no historic notes available to me about the property.
If the property really is inhabitable, is there any way you might suggest having this property disregarded as capital?
Any useful information gratefully received. As ever - thanks in advance.

Yasmin

C Browne
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Macmillan Cancer Support

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Dear Greeny,

I assume that you are concerned about the client’s previous entitlement to means-tested benefits e.g. IS, HB etc. Capital assets, such as ownership of a property, only impact upon means-tested benefits if they have a financial value. If the derelict property has a capital value of less than £6,000, then her ownership of it has no impact on her entitlement to means-tested benefits. Of course, cases are rarely that straight forward but I would suggest that, initially at least, you need to get your client to investigate whether the property in question has any financial value.

Regards

Chris

Greeny
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Salford Welfare Rights (Health)

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This is what I hope! however, even in the most deprived area of Greater Manchester I expect any property / land would be worth more than 6k. I will see what I can find out next week.. Thanks

ClairemHodgson
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Solicitor, SC Law, Harrow

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it will probably have value as a development opportunity upon which someone could construct a house.  that could be quite valuable indeed, depending on exactly where in manchester.  they woudln’t have to start again with planning permisson for a house on the plot, they’d probably (i’m no where near an expert on this stuff, just what i’ve gleaned from reading cases and suchlike) only need permission for the particular plans and building regs consent.  so cheaper for a developer than starting from scratch.  it will be a nightmare…....

C Browne
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Macmillan Cancer Support

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Hi Greeny,

What you have to remember is that a property is only worth what someone may be willing to pay for it. As a general principle, land has a value but if it is only one plot, then a house building company probably wouldn’t be interested in buying it. A private purchaser may find that the costs of dismantling a derelict property and then rebuilding a new home may not be worth it to them, with or without planning permission.

Definitely not my area of expertise either but maybe looking at land and home auction sites may be a starting point for your client.

Regards

Chris

Gareth Morgan
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CEO, Ferret, Cardiff

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Also, find out if there are any debts associated with the property.

Paul_Treloar_AgeUK
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Information and advice resources - Age UK

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This paper on property and social security from the Nawra meeting earlier on this year might be helpful?

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