CSA variations & mortgage payments

elliebellie

Hi!
Apologies if this has been answered before, but I am getting myself all confused??!?

Looking for some advice and clarity for a friend who has found herself in the minefield that is separation, children and CSA.

She (PWC) and the 2 children live in the house which they shared until he moved out. He (NRP) is the only name on the mortgage and deeds and he pays the mortgage every month. She has no claim on the property at all, as they were co-habiting and not married.

He has not paid any child maintenance since he left the property, she has paid all bills, childcare etc since he left.

According to a call received today from the CSA, he can claim a “variation” against the child maintenance as he is paying the mortgage, however when I looked at the CSA website it states that

“If you are a non-resident parent, we might look at the amount of child maintenance again if you have special expenses of more than £10 a week, or £15 if your income is £200 or more, for:
Making payments on a mortgage, loan or insurance policy to pay off a mortgage or loan on the home that you and the parent with care used to share. The parent with care and the children must still live in the house and you must have no legal interest in it”

The key information in this is the last line “you must have no legal interest in it”.

Does this mean he shouldn’t be able to claim a variation given that he is owner of the property and therefore by default most definitely has a legal interest in the property?

Any help gratefully received
Elliebellie

missbunbury

He may be able to have it classed as prior debt, it'll depend on whether he can say the house was bought for the benefit of the family. If this is the case, they will reduce his assessable weekly income by however much he pays per week for the mortgage, less £15pw. So as an example, if he earns £1500pcm net, pays £500pcm for the mortgage, his maintenance without the mortgage taken into consideration is £69 (20% of £346) but they will then take £100pw off for the mortgage (which is £115pw) giving a new assessable income of £246 and a new maintenance calculation of £49. All these figures are obviously made up for simplicity, but I think you can see that he will still be paying a fair whack so she won't lose out nearly as much as she might be thinking.

Caz3121

If he was paying the maintenance would she be able to cover the mortgage payments?
Would she be better off if they moved elsewhere, got the maintenance and paid her own living costs

Marisco

Is he be willing to pay the mortgage and the CSA? As Caz says she might be better moving into her own place, as he could get fed up paying a lot of money out per month, and decide to sell the house!

kelloggs36

Can he afford to pay both? She is getting free housing afterall!!!!!!

However, in answer to your question, no he won't get the variation as he has a legal interest in the property.

Fission

elliebellie wrote:

The key information in this is the last line “you must have no legal interest in it”.

Does this mean he shouldn’t be able to claim a variation given that he is owner of the property and therefore by default most definitely has a legal interest in the property?

That is almost exactly what it means. He can make the claim, but if the agency is told about him being the owner (or an owner), they cannot make an award.

F

PreludeForTimeFeelers

I'm pretty sure that he would still be able to get a variation, but not on mortgage grounds, instead it would be classed as 'prior debt'.

kelloggs36

No it wouldn't - the prior debt rules are also very strict and they would look at who owns the property.

PreludeForTimeFeelers

kelloggs36 wrote: »

No it wouldn't - the prior debt rules are also very strict and they would look at who owns the property.

It may have been the case with departures, but I'm sure that a variation for prior debt would be granted in this example. The NRP is paying the full mortgage, and (although he retains a legal interest) it is the PWC and QC/QCs who benefit directly from it.

elliebellie

PreludeForTimeFeelers wrote: »

I'm pretty sure that he would still be able to get a variation, but not on mortgage grounds, instead it would be classed as 'prior debt'.

That was my gut feeling, but I can't find anything on the rules about variations, apart from the one paragraph on the CSA website.

Do you know where I can find any detailed information about the prior debt variations rules please?

Cheers

kelloggs36

I can't see it myself - otherwise they wouldn't bother with the other clause!