Capital Former Home

Have a client who has suffered from severe mental health problems, she separated from her partner and currently lives in private rented accommodation with her son who is believed to be about 7 years old.  She is in receipt of incapacity benefit and DLA low care and low mobility.  Her ex partner lives on his own in the maternal home, is difficult to cooperate with to help his former partner.  She is aged about 44, he is under pension credit age and is not incapacitated.

The capital of the previous home was initially disregarded as her son lived there, now that the son has come to live with her, and a period of 26 weeks has elapsed, the local authority are taking the value of her presumed interest in the owned property and ceasing her entitlement to housing benefit and council tax benefit.

The value of the property was taken as market value, minus 10% and the remainder left divided by two leaving her an interest of £27,537.80.

Have not searched the land registry yet to see whether there are any other charges that apply to the property, or on how the ownership is set up.  We have also been told that the property is somewhat dilapidated.

The local authority have sent a letter stating that if our client was in receipt of income support, income related ESA or income based JSA then entitlement to full HB/CTB achieved.  But from this if the property the ex partner is living in is assessed similarly to as that by the local authority our client would not be entitled to income based / income related benefits anyway.

Would appreciate any feedback on what our client’s option’s may be to enable her to remain in her current rented property, together with consideration on the course of action necessary to achieve this e.g. appeal on grounds of valuation or son moving back with father.

GREG
A4U

Well, in the first instance, the true market value of her share needs to be established (if you have the current CPAG handbook see page 967 plus citations). With her ex partner in the house the market value may be significantly less than the DWP’s calculation.

The easiest way forward though would be for her to instruct a family solicitor with a view to reaching a settlement with her ex. She’ll then be taking reasonable steps to dispose of her share of the asset which will result in further 26 week (or longer) disregard.