Can I add someone on to land registry?

pinklipy

Thanks holly, and sorry if I am making this difficult. I know its all a big drama and it's only because when universal credit comes in the will take equity into account where as at present tax credits do not. Anyway I wouldn't have the 100k as itd pay off the mortgage on the property so technically would make zero from the sale. Or I could sell now and put the equity into my family home but I don't think I can as i have an interest only mortgage?
Sorry for all the questions!

Thanks

pinklipy

And I wouldn't be able to secure my share post sale, I would just have to trust that when the time came she would give me my share I suppose.

holly_hobby

pinklipy wrote: »

Anyway I wouldn't have the 100k as itd pay off the mortgage on the property so technically would make zero from the sale.

You're not thinking what you are saying ...

sister obtains 100k mortgage (don't forget valuation, lender and legal fees)

sister buys property from you - her conveyencer deposits 100k into your bank

the property is now solely in your sisters name

BUT - you then take the 100k and repay her mortgage for her, so that you can effectively dispose of the capital, and keep on receiving MT benefits I assume.

So she now has 100% sole ownership of the property and no mortgage, you are nowwhere in the deeds, and will be 100k down to boot !!

Great Plan !

pinklipy wrote: »

Or I could sell now and put the equity into my family home but I don't think I can as i have an interest only mortgage?

You could pay a lump sum off your mortgage, subject to redemption penalties ... but didn't you say DWP take account of free equity in a property owned by you ?

You must be getting some pretty decent benefits to be going to so much trouble ... is it really worth all this cloak and dagger stuff ??

Holly

pinklipy

God I really do sound silly! In sorry, you must be getting frustrated. She pays the mortgage at present with her half from the rent, so she'd buy it from me I'd pay off the mortgage and she'd still have a 100k mortgage and I would still have my share of equity in the property. As it is worth more than 100k but it would take a few years to reach 200k for my share to be equal as she took more than her half, does that make sense?
They don't take into account equity in your home that you live in, but I didn't realise I could pay off a lump sum on an interest only mortgage. I'm a single mum to 2 young children so although I don't get loads in benefits the wtc & ctc i do get top up my wage and keep us afloat.

Thanks for all your input.

System

If you attempt to pay off a lump sum of your mortgage then that will also be seen as deprivation of assets for benefits purposes. You will be no better off as it will be classed as notional capital.

pinklipy

Well the changes will take up to 4 years to happen and won't start untill late 2013 so if I was to do it this year it wouldn't count as I may not even of known the change was happening so I doubt it'd be classed as deprivation of assets. Or I'd have to hope not......

laurel7172

I'm really confused.

You say your sister has had her money out of it, and you have the debt?

So....let's imagine you inherited a house worth £100k. You took on debt of £50k, and paid the money to your sister.

So then, the whole house WOULD be yours. She has had £50k cash, you have a £100k house less £50k debt, i.e. £50k.

She isn't morally or legally entitled to anything in that scenario. Whatever the numbers, if you got the mortgage and she got the cash, she's certainly not entitled to half.

How much was the house worth, how much is the mortgage, and how much money has she had?

pinklipy

Yes you are right lol! But I also wouldn't just sell without her "blessing" as even though she has had her money out of it she still owns half just not on paper. I suppose I basically took a mortgage out for her. But if we were to keep the property for say another 20 years then she would prob end up with equity back in it. It's worth around 160k and the mortgage is 100k so she's got more than half. I had just hoped to hold on to it untill my share was big enough to pay off my house mortgage.

pinklipy

Like I say I was young at the time and didn't think it was a big deal, now years later I'm realising the I drew the short straw so to speak.

System

pinklipy wrote: »

Well the changes will take up to 4 years to happen and won't start untill late 2013 so if I was to do it this year it wouldn't count as I may not even of known the change was happening so I doubt it'd be classed as deprivation of assets. Or I'd have to hope not......

But it will affect current benefits now

I think you burnt your bridges as soon as you got the mortgage and full ownership of the house. Anything that you do now which realises capital, even in the short term, will affect your current benefit entitlement.