Capital disregard in shared ownership property

Clt was on ESAir and HB/CTS, and PIP Enh. Had reached pension age and ESA ceased and HB/CTS suspended. 

Complication: she has 50% ownership in a shared ownership property which, because of severe disability and acute health issues, she’d had to vacate some 4 years ago and move urgently into a privately rented bungalow.  At the time, DWP were satisfied that, although she’d started steps to sell her share, she was just too poorly and hadn’t been able to get any further (furniture and chattels are still in the property). Covid complicated things further and she is still really ill with physical and mental health issues: is in bed most days.
When ESAir ended, she claimed PC, and the officer she spoke with was satisfied that he could still apply a disregard to the value in the property.  However, there were a couple of pension adjustments and her income has turned out just a few pounds above her appropriate amount.
She needs to present the same issues to the LA for a standard HB claim to be calculated.  The LA will have to make its own findings though.

I’ve tried looking to see what steps will be needed (and acceptable to the LA) to start a fresh approach into commencing sale proceedings, but it looks expensive - about £1k - and that’s without the costs of clearing and cleaning the property, which will be required by the HA.  She’s also behind with the rent charges on the unoccupied property.
I have to have this discussion with clt tomorrow, am really worried about her mental health and would be sooo grateful if any welfs have any suggestions on what minimum steps might be acceptable to allow the capital disregard.

Shared ownership or shared equity?

Thanks Gareth.  It’s 50% ownership (no mortgage), and clt pays rent to the Hsg Association on the other half.

That still doesn’t tell us whether it is shared ownership or shared equity - might result in very different valuations.

Shared ownership is an assured tenancy acquired for a premium, with the rent on a sliding scale inversely proportional to the premium.  You don’t “own” one bit and rent the other bit, you rent the whole place.  You can sell the tenancy, but usually to a restricted client group (typically 55+).  It may well be that reasonable steps to dispose would go on for some time: I know someone who inherited a shared ownership flat in a retirement complex when his father died and it took years to find a buyer.

Shared equity on the other hand is where you are entitled to receive a %age of the proceeds from the sale of a conventional freehold or long leasehold property.  On the whole a shared equity stake is easier to realise and easier to value.

I haven’t seen the paperwork Peter, but believe it to be the former.
Clt says she going to make some calls and I will catch up with again after the bank holiday.  (She was too poorly to speak to me for more than a couple of minutes this morning.)

Thank you so much for your interest.
Help and advice from Rightsnet colleagues is invaluable.

Elaine