House handed back - Deprivation of Capital!!!

dmg24

You have an interest in the property until you receive the proceeds of sale.

andyandflo

dmg24 wrote: »

You have been warned several times that your plan could be seen as deprivation of capital, so you can't say this is news to you.

The difference between paying benefits to someone with a property is that the equity is not available to them, if you (or someone else) sell the property then the equity is now a liquid asset, it is available to you to spend.

As ever, when people tried to give you advice you thought that you knew better. Now you need to go and get proper advice before things are taken out of your hands completely, and actually take on board the information you are given.

Thank you for that.
I did take on board what you have said in the past. That was after
I had signed over the house to the bank. I couldn't go back in there and ask them to forget what I had done, scrap all of the paperwork etc. I would have looked a right divi!

I did however talk to them as suggested and they reassured me that they would look after everything for me and for me not to worry anymore.

It's no good saying what I should have done after I had already done it weeks before.

No I don't think I know better, I can only go by the bank that explained everything to me. What am I supposed to say to them - that they don't know what they are talking about?

OK, so beit, it doesn't seem to matter then if I get anything out of the sale or not as it will have to be used before I can claim Pension Credit again. If the bank take the lot then I haven't lost anything.

I can't do anything about what has happened - that is done, so I don't see the point in wasting money seeing somebody else. OK - I'll go back down to the bank again in the morning when I sign on. Just to make sure that they are happy that everything that can be done is being done.

healy

Bogof_Babe wrote: »

2004-2009, so five years mortgage @ £300 a month = £18,000.

That leaves £117,000 of your savings, which you appear to have spent at the rate of £23,000 a year?

That's quite good going for someone wanting to make his savings last.

The OP also said the other day that they had a job earning £20,000 a year up until the end of last year, though I do not know how long they were in this job for.

andyandflo

dmg24 wrote: »

You have an interest in the property until you receive the proceeds of sale.

No I don't I signed over the house to the bank for the value of the outstanding mortgage.

The bank said that if there is any money left over they will send it to me.

I have no more legal rights over the property - if I did then my keys would still work in the locks. They don't - the bank changed them.

GlasweJen

How much LHA have you claimed since you handed back your house OP? Would that be swallowed up by the amount that the house hopefully gets auctioned for?

Not sure about the new rules but under the old HB system you could get a claim sanctioned in your circumstances (i.e. had another property, claimed HB, got caught and paid back by selling other property).

dmg24

andyandflo wrote: »

No I don't I signed over the house to the bank for the value of the outstanding mortgage.

The bank said that if there is any money left over they will send it to me.

I have no more legal rights over the property - if I did then my keys would still work in the locks. They don't - the bank changed them.

You are doing it again - someone tells you something, you say they are wrong.

Until you have that money you have an interest in the property, just as the bank had an interest in the property when you owned it.

TOBRUK

GlasweJen wrote: »

How much LHA have you claimed since you handed back your house OP? Would that be swallowed up by the amount that the house hopefully gets auctioned for?

Not sure about the new rules but under the old HB system you could get a claim sanctioned in your circumstances (i.e. had another property, claimed HB, got caught and paid back by selling other property).

I was thinking along the same lines as you I think GlasweJen, if he has a claim (in any form) on the house - and he does if he is to get anything from the sale, HB may want the rent they have been paying so far back.

Andyandflo, are the HB office aware of your circumstances with regard the house???

andyandflo

Bogof_Babe wrote: »

2004-2009, so five years mortgage @ £300 a month = £18,000.

That leaves £117,000 of your savings, which you appear to have spent at the rate of £23,000 a year?

That's quite good going for someone wanting to make his savings last.

Is it?

It was never the intention to be ill, not did I know that things would take a dramatic downturn in my health in Oct 09 and again in the early part of this year!

andyandflo

healy wrote: »

The OP also said the other day that they had a job earning £20,000 a year up until the end of last year, though I do not know how long they were in this job for.

I did, but through not being able to work, I wasn't paid all of the time.

viktory

andyandflo wrote: »

Hi everyone,

Things cannot get any worse than they are right now.

After losing our home in early August and after telling Pension Credit about it (because of change of address), they have now written to me asking how much equity was in the property, who now owns the property and when was it actually given away.

What the ****!!!!!

I only get £5.25pw off them!

Apparently they are looking at it as 'Deprivation of Capital'.

Come on now, all of our savings have gone - with what we had to use to live on in between 2004 and 2009 because our capital precluded us from means tested benefits, the loss of our home (including furniture) for which we put down £60,000 deposit in 2003 and now they are trying to say that we have given away £80,000 being the equity in the home when we handed the keys in.

I am not so worried about losing the £5, but what this will cause in future years if we do need to claim more Pension Credit if I can't get JSA (Contribution based) anymore.

I know I have an argument that the equity does not exist until I actually receive it from the bank following the house auction. But when I do, will I have to use that up as well to live off before I could claim any future means tested benefits?

If that is the case all of the hard work I put in over the years and did the right thing to save for a home for the two of us, and have savings in the bank for a rainy day has gone. All we are left with are a few sticks of furniture in a crummy rented 1 bed flat in not a very nice area.

Where is the justice in all of this? I am no better off, than if I had sat on my a**e for years and claimed benefits or had spent the whole lot a long time ago on wine women and song!!!!!

Oh dear, what a shame :rotfl::rotfl::rotfl: