Help plz: sick & on benefit, 2nd home rental income alowance used to assess IS level

BANNEDfromTV

dmg24 wrote: »

Do you post on this board to help, or just to get the OP into trouble? :rolleyes:

A sudden reduction in rental income will raise questions with the JCP, and setting a rent below market levels would be seen as deprivation of capital (with the difference between the level charged and the market level being treated as notional income).

It wouldn't at all, where do you get this rubbish?
All the OP is doing is ensuring there is no income from the rental, nothing illegal in that. She's not suddenly giving away savings to a third party, she's already stated anything above the rent is used for the house anyway but since nothing is constantly taken out for this then its classed as income. There is no law (even deprivation of capital) to say she cannot lower the rental level of her property.

I suggest the OP contacts the CAB to discuss if she has any reservations as clearly all you like to do is dictate or use scare tactics.

I think we're in agreement that ideally the best course of action for the OP would be to sell the house but since it is in negative equity that is (a) not possible and (b) financially worse for the OP.

AlmostThere_2

woody01 wrote: »

Just sell it!
Why should the state assist in helping you when you own two properties.

Oldernotwiser said in post 7 that

"Your mortgage provider won't let you sell a property in negative equity unless you can make up the shortfall from other funds, I'm afraid."

so that doesn't look to be an option for the OP

von

Income (i.e. rent) from capital (i.e. your second property) is treated as capital unless the capital (i.e. your property) is disregarded under certian circumstances. Have a read of para 29735 et seq for the treatment of a rental income from a second property for JSA purposes:http://www.dwp.gov.uk/docs/ch29-23284.pdf