Capital own home possible rent impact on ESA (IR) PIP HB Ct

pmlindyloo

NYM wrote: »

I'm very confused here. My question is (btw.not specifically related to the OP'er, but may have some relevance)


How is it determined that a property is in negative equity ?
EA valuation/Mortgage Provider/Customer declaration ?

Decision Maker's Guide

Current market value
52615 Current market value means the price a willing buyer will pay a willing seller in that
market on the relevant date1
. The market is the market for what is for sale. So if a
house is for sale it is the property market. The relevant date is the date of claim or
date of revision/supersession.
1 R (SB) 6/84
52616 DMs work out the current market value
1. themselves or
2. from evidence given by the claimant or person whose capital it is or
3. from evidence from an expert valuer.

Seems very wishy washy!

rogerblack

pmlindyloo wrote: »

Seems very wishy washy!

There is more precise guidance.
But - if there is a mortgage on the property, it is impossible usually to sell it without repaying the lender.
This means that there is no legal way to walk away with the cash - and only cash you can legally gain access to is counted.

If you would end up with a debt after selling, including all costs that are unavoidable - then you are in negative equity.
If the capital left after all costs is under 6/16/20K then in various circumstances it may not affect benefits.

Housing_Benefit_Officer

pmlindyloo wrote: »

Decision Maker's Guide

Current market value
52615 Current market value means the price a willing buyer will pay a willing seller in that
market on the relevant date1
. The market is the market for what is for sale. So if a
house is for sale it is the property market. The relevant date is the date of claim or
date of revision/supersession.
1 R (SB) 6/84
52616 DMs work out the current market value
1. themselves or
2. from evidence given by the claimant or person whose capital it is or
3. from evidence from an expert valuer.

Seems very wishy washy!

We always send details to the Valuation Office Agency to their District Valuer Service

https://www.gov.uk/government/organisations/district-valuer-services-dvs

Once a year we re refer the details to take into account fluctuations in the market.

Housing_Benefit_Officer

bloolagoon wrote: »

I will reword so it's not about OP.

Are you saying that if an original mortgage is £50,000 but someone borrows £100,000 from equity to fund holidays, cars etc the govt would treat the mortgage as £100,000?

If it was before they claimed any means tested benefits then yes.

It would be looked at as deprivation of capital if they deliberately re mortgaged a property while trying to claim benefits to reduce the capital value then squandered any capital raised.

Janetta

Thank goodness for the benefit savvy Housing Benefit Officer & to those who responded with good advice. It's appreciated - it's now with the decision maker for their response to my request.

Janetta

Dear all,
So I got my response from the DWP decision maker - I can go ahead and rent - however
A complete review of my benefits every 3 months as I am on both Income related & contribution based E S A. They cant commit to full response until i actually start the rental.
Then Estate agent calls got an offer, for purchase - only to be told later by their best negotiator thats its £5000 less, i reiterate what I'm told the offer was - all of a sudden the buyer cant be found, he's at work, got to check with his wife etc etc
I wish some- one had told me how awful countrywide estate agents were. In the meantime i am in limbo as i accepted this offer.
Keep being told to wait - this has been going on since Monday 9 am -
Any advice ?
Exhausted with this ......
Thanks

NYM

Janetta wrote: »

Dear all,
So I got my response from the DWP decision maker - I can go ahead and rent - however
A complete review of my benefits every 3 months as I am on both Income related & contribution based E S A. They cant commit to full response until i actually start the rental.
Then Estate agent calls got an offer, for purchase - only to be told later by their best negotiator thats its £5000 less, i reiterate what I'm told the offer was - all of a sudden the buyer cant be found, he's at work, got to check with his wife etc etc
I wish some- one had told me how awful countrywide estate agents were. In the meantime i am in limbo as i accepted this offer.
Keep being told to wait - this has been going on since Monday 9 am -
Any advice ?
Exhausted with this ......
Thanks

My advice is to get rid of Countrywide ...