housing benefit claim

lola38

My name is on a mortgage with my ex-partner. He is living in the house and I am living in rented accommodation with my 2 children. I have been told by the council that I cannot claim council tax and housing benefit until my ex either sells the house or my name is removed from the mortgage. As this could take months I will now have to move in with elderly parents. Can I claim benefits while I am unable to live in the house i am named on?

Benefits_Bod

lola38 wrote: »

My name is on a mortgage with my ex-partner. He is living in the house and I am living in rented accommodation with my 2 children. I have been told by the council that I cannot claim council tax and housing benefit until my ex either sells the house or my name is removed from the mortgage.

The council's advice is woefully incomplete. Firstly, anyone is legally entitled to make a CLAIM. Whether there is entitlement is a separate matter.

Secondly, the fact your name is on the deeds and/or mortgage isn't anything like the whole story. For example:

- If the property was to be sold, do you stand to share in the proceeds? (In other words, are you a beneficial owner?). If not, it is open to argument you have no capital value in the property - this will depend on all of the facts.

- If you do have a "beneficial interest" in the property, are steps being taken to sell it? If yes and such steps are reasonable, the value should be disregarded for at least 26 weeks - longer where reasonable.

- With a beneficial interest, the valuation isn't simply 50% of the market value. The valuation is the market value of your share. As the property is currently occupied, the value (of YOUR share) may well be lower, even much lower, than it otherwise would be.

- Once a valuation of your share has been established, 10% of that value must be disregarded. After that, any "encumbrance" (e.g. outstanding mortgage / loan secured on the property) must by deducted.

The above is just a part of what must be considered. My advice? Put a claim in, giving all the information about the property and who has an interest and who doesn't. That puts the council in the position of having to make a formal decision which, in turn, gives you the legal right to challenge it by way of appeal.

In my experience, council HB/CTB sections are notoriously poor when trying to assess valuations of property. So, even if you meet resistance, you have nothing to lose by moving it forward. After all, what's the worst that can happen? Council says no and, eventually, an appeal Tribunal agrees. Yes, it's time and effort. But, no financial outlay.

NB: If the council does say "no", contact a local welfare rights organisation (if you have one) or CAB - they may be able to assist on the correct approach to valuing the property.