Pensioner has PC stopped due to property hand over

countrybelle

Hi All,

Bit of a complicated one. My Mum and Dad had a house in Southern Ireland. My mother lives here as of about three years ago, my father stayed in Eire (they divorced) He was trying to sell the house. He got cancer, they reunited and remarried before his death, him coming to eek out his time here in the UK. (Dad is British) Dad passed away, Mum had declared a half share in the property on her pension credit forms etc and we set about trying to sell the property.

We had no luck at all, it was a nightmare, the Irish economy fell on it's backside, the house devalued by half and was beginning to cost Mum money. Money she did not have at all, hence being on pension credit. She lives in a council bungalow, having stayed with us for a year and my children had to share a room to accommodate her. Since Dad passed the DWP have hassled her about the house regularly, she had done everything she could and in the end could no longer afford to keep paying for the up keep of the property. We helped where we could, then the roof fell in! That was the final straw for her, she couldn't pay for the repairs and ends up passing the property to me to maintain.

So we did that I paid for the continued works in the hope that one day it will sell.

Then she goes to the bank, the DWP have removed her pension credit element without warning, when she called they claim that she had been written to, no letter received, they were stopping this credit due to her handing over the house. She's not avoiding care costs, not doing anything dodgy, she had no money to look after the house!

Seems barking to me, any ideas? I will help her appeal, but I've not heard of this before.

Your help is appreciated,
Rene

Whiteknight

Firstly for Pension Credit they should have been assessed as a couple when they remarried, lets assume this happened - the Pension Service would have then taken account of any income/property that her husband had.

You mention that she was in the UK claiming Pension Credit and had declared the half share in the property in S. Ireland. At that time the Pension Service should have asked additional questions had your mother complete additional forms regarding the property, depending on the circumstances they could have disregarded the value of the property. Once they got back together, and you don't make it clear how long after they got back together he passed away the claim would be treated differently and so would the property.

You state that the DWP have been hassling your mother about the property, normally all they need to know is what steps she has taken to sell the property - she lets them know and provides evidence.

If she does not provide evidence or the Pension Service decide that she has not taken reasonable steps to sell then they would consider the value of the property as capital and depending on the value that could take her out of entitlement for Pension Credit.

What makes this more complex is the fact that she has given you the property - that would be looked at as if she had sold the house and handed over the money to you.

Who owns the other share of the house in Southern Ireland,

countrybelle

Hmm,
To my knowledge, she was assessed as an individual for PC, then Dad came back, a claim for DLA is in the mix due to his terminal cancer, they re marry. Dad dies 6 months after they re marry. He leaves his half of the house to her. This is March 2010. Market collapses, as does the house! She has always declared the house as a potential asset, but as time goes on, she can't afford to maintain it as she is surviving on 130 pw

Oldernotwiser

reneobscene wrote: »

Hmm,
To my knowledge, she was assessed as an individual for PC, then Dad came back, a claim for DLA is in the mix due to his terminal cancer, they re marry. Dad dies 6 months after they re marry. He leaves his half of the house to her. This is March 2010. Market collapses, as does the house! She has always declared the house as a potential asset, but as time goes on, she can't afford to maintain it as she is surviving on 130 pw

Who inherited the other half of the house?

Caz3121

and what was the equity on the house even in current state?

countrybelle

Mum owned half and Dad's half came to her, so she owned all of it. Depending on the value of the € it was on the market for €100k However, it was devalued from €190k The house is in a terrible state.

countrybelle

Also, there is no mortgage, which is why she handed it to me. I paid for all of the expenses for settling Dad's affairs, clearing the house, repairs and so on. She felt it was the only way to clear everything up.

Oldernotwiser

There's still going to be substantial equity in the property which she's just given to you. This will affect her claim for HB/CTB and she will be assessed as if she still had the money.

Bogof_Babe

I'd say the best bet would be to sell the house at auction with no reserve.

Oldernotwiser

Bogof_Babe wrote: »

I'd say the best bet would be to sell the house at auction with no reserve.

I agree - and then give the money back to the mother because she's going to be assessed as if she still had it anyway.

chrissiesurfergirl123

Do you mean the house has been officially transferred into your name and ownership documents are now in your name? Or do you mean that you have agreed to pay for the upkeep/repairs on her behalf until it is sold by her and she will repay you from the proceeds? Is the house currently up for sale?
All these factors will affect the decision on PC. Sounds like they have decided that your mother has deprived herself of a capital asset in order to continue to claim income based benefits and are therefore treating the value of the property as notional capital ie as if she still has it. Ask for a full written explanation of the decision so you know what you are appealing against