House handed back - Deprivation of Capital!!!

tcr_3

andyandflo wrote: »

The property was purchased by us in January 2003. The bank were slow in getting the mortgage monies out. I actually borrowed £103K to buy the house from a friend.
Two weeks later or so, the bank gave me £103K which discharged the debt used to buy the house and the bank took a charge over the property.
The money from the bank was never used to settle a 'personal' debt, it was used to pay off an existing loan/mortgage over the property.
Was that a mistake?

No Andy, that in itself wasn't a mistake.

You borrowed from your friend & bought the house (and that isn't a mortgage, it's a loan from one person to another, you know that well yourself so stop insulting our intelligence).

2 wks later your mortgage comes through and you pay your mate off. Although it isn't really a common or garden mortgage, is it ? Because you'd owned the house outright for those 2 wks, so it's really an equity release loan rather than a plain ordinary mortgage.

No matter what you call that loan, DWP can only help on loans used "to acquire an interest in the home". And your mortgage wasn't used to "acquire an interest in your home" .... because you owned it outright. Can you not understand that ?

Was your decision to organise the house purchase that way a mistake ? It might not have been a mistake based on your earnings, employability, health etc ... but in terms of getting help from the State yeah it was a mistake. A major mistake. Because that's been the rules since SMI help kicked in proper from the tail end of the 1980's onwards. You, Mr Accountant, devoted none of your time to even wondering what might happen if things went bad, if you were off sick, lost your job or whatever.

That's your fault, not the DWP's. It's yours. It's a terrible shame for you, that's not in doubt. And I am sympathetic because I know you loved your house. But that's the rules, unfortunately ... it's been pointed out to you time and time again.

As to depriving yourself of capital, I'm normally quite easy going on the whole thing. Because the test is to "deprive yourself of capital with the intention of getting benefit, or a higher rate of benefit, than you'd otherwise be entitled to".

And most people don't even think about the benefit side of things as they go out and buy their new telly or pay for a fancy holiday. So DWP have great difficulty proving deprivation in such cases.

You ? You're so full of it ... you've made getting benefit ... Pension Credit, Housing Benefit, ESA/JSA or whatever ... your NUMBER ONE priority when disposing of the mortgage equity, you're just that witless. You've even boasted what a great idea it is to just hand in the keys and get everything paid for you.

And when folk have said ... whoah, that's not right ... you've kept on insisting you're in the right and that others haven't a clue what they're talking about. Even now there's no contrition, no acceptance that you might perhaps have been wrong. And that's why people are so hostile, people who maybe work in benefit delivery, citizens advice, welfare rights ... people you diss and who spend so much of their spare time here on MSE helping guys out like you ... and who get nothing back apart from your total contempt.

Well, I'm sorry mate but you're in a right mess now and I don't detect my sympathy from folks to help you out, sorry.

DX2

I bet even the CAG experts can't get you out of this mess

andyandflo

AnxiousMum wrote: »

True, but most don't just then give away their assets at the drop of a hat like you did, and then expect the state to pay your costs of living for you!

So um, where's the house? I'm thinking a house valued at £170-180K for £103K might possibly be a good investment, and we all know the bank will take what they can get in a quick sale.......

For your interest this is a similar type of house to what mine was. It is on the same small estate but mine had a larger rear garden, conservatory backing onto open park land at the rear.
When I get the auction details I will forward them on if you are interested:

http://www.rightmove.co.uk/property-for-sale/property-16476840.html

Vader123

Hang on a minute here.

You said you were building two bungalows, one for you and one for your daughter.

How does this fit in to the picture?

Vader

rosysparkle

Marketed at £185k, and apparently yours was better. You think the DWP will agree that your house was only worth £103k? No chance.

andyandflo

That's it I've had enough of this agro. I do not know why I have upset so many people - but heyho it's life,

Everything I have asked about has been turned into a personal assault
Yes I have problems, lots of them. Can't get benefits that others would with the same circumstances get. Lose my home, ill health.

Damn I don't need this anymore.

Whatever happens happens - I honestly don't care.

If need be I'll go bankrupt

I don't want anymore of your 'advice' I have a life to live

DX2

Do you think it has anything to do with the amount of lies that you tell. You have been busted so many times on other threads and on this one aswell.

GlasweJen

Going bankrupt wont help in your situation, if the DWP/LA have reason to think you're going bankrupt to avoid repaying the pension credits/local housing allowance that you owe they'll just prosecute you for fraud instead. Threatening to go bankrupt will just put you in a bigger mess than you are in now.

rosysparkle

andyandflo wrote: »

That's it I've had enough of this agro. I do not know why I have upset so many people - but heyho it's life,

Everything I have asked about has been turned into a personal assault

You get what you give. You attack others, it's human nature that people react.

Yes I have problems, lots of them. Can't get benefits that others would with the same circumstances get. Lose my home, ill health.

Big whoop. We all have problems of one sort or another, what makes you more deserving than anyone else? I am on DLA and I'm only hanging onto a part time job because my employer is understanding, and because they value me as an employee. Every month is a struggle to pay my mortgage and bills but you don't hear me whining, I get on with it and make the best of the hand life's dealt me.

Damn I don't need this anymore.

Whatever happens happens - I honestly don't care.

If need be I'll go bankrupt

I don't want anymore of your 'advice' I have a life to live

Your choice. You've given poor advice, you've posted some wildly conflicting stories, you've dismissed all the help that people have tried to give. You are still rejecting the advice, and in the end you will be the poorer for it.

healy

andyandflo wrote: »

That's it I've had enough of this agro. I do not know why I have upset so many people - but heyho it's life,

Everything I have asked about has been turned into a personal assault
Yes I have problems, lots of them. Can't get benefits that others would with the same circumstances get. Lose my home, ill health.

Damn I don't need this anymore.

Whatever happens happens - I honestly don't care.

If need be I'll go bankrupt

I don't want anymore of your 'advice' I have a life to live

You have been given lots of good advice as well as perfectly understandable opinions but you do not want to listen. Some of the people who have given advice are clearly experts but it makes no difference to you.

I think you are right to decide to give it a rest because people are always going to be honest in their opinions and they clearly will not agree with your views.

P.S. Remember - DO NOT DRINK AND DRIVE.