entitled to pension credits?

DAKOTA45

I think I now understand the part about the jointly owned property being considered as capital…
Before PC can be granted, they have to assess the amount of capital a person has. I would imagine if a property was owned outright, then they would possibly expect you to sell it if you no longer live in it.
However, in this case there is a very large mortgage and very little equity and to sell it to obtain a half share of any equity would also make the wife homeless.
I imagine they will want to send somebody to value the property, etc., before they grant PC… ?

Dakota45

p00hsticks

DAKOTA45 wrote: »

I imagine they will want to send somebody to value the property, etc., before they grant PC… ?

Dakota45

I'm not sure that they'll go that far - but they will ask questions regarding the estimated property value and mortgage, and also possibly whether the wife is paying any rent to the husband to remain in the property - after all the house could be considered not just as capital but also as a possible source of income.

xylophone

The husband could make an appointment with a Benefits Specialist at CAB and discuss his situation.

xylophone

Incidentally, as the husband is now in his 65th year, he must shortly be due his state pension.

Has he obtained a new state pension statement?

https://www.gov.uk/check-state-pension

DAKOTA45

p00hsticks wrote: »

I'm not sure that they'll go that far - but they will ask questions regarding the estimated property value and mortgage, and also possibly whether the wife is paying any rent to the husband to remain in the property - after all the house could be considered not just as capital but also as a possible source of income.

No… she doesn't pay him… but only part of the mortgage interest is being paid by the DWP, so she has to pay the remainder of about £100 per month…. He pays nothing towards the mortgage interest.

They had a full structural survey carried out about 3 years ago which included a valuation which showed there was no equity in the property (unless repairs were to be carried out).

Dakota45

DAKOTA45

xylophone wrote: »

Incidentally, as the husband is now in his 65th year, he must shortly be due his state pension.

Has he obtained a new state pension statement?

https://www.gov.uk/check-state-pension

I believe he will receive his state pension in April… so the PC is just a stop gap.

Incidentally, would he be able to accept any freelance work which might became available whilst in receipt of PC, as long as he informs them?

Dakota45

DAKOTA45

xylophone wrote: »

The husband could make an appointment with a Benefits Specialist at CAB and discuss his situation.

Apparently, he is speaking to someone next week. Dakota45

xylophone

Incidentally, would he be able to accept any freelance work which might became available whilst in receipt of PC, as long as he informs them?

https://www.gov.uk/pension-credit/what-youll-get

"If your circumstances change
Phone the helpline if your circumstances change as this can affect how much you get. For example, if your income or capital goes up or down."

Alice_Holt

From:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/535076/pension-credit-detailed-guide-pc10s.pdf

"Houses and land

If your customer or their partner own a property but do not live in it

State Pension Credit Regulations Sch V, Para 4 apply

The value of the property can be ignored if it is occupied by:

• their or their partner’s close relative, such as a child or partner’s sister, if that
person has reached the Pension Credit qualifying age or is sick or disabled; or
• a partner or former partner from whom they are not estranged or divorced (for
example, if your customer is in a care home and their husband, wife or civil
partner is living in the property).

My intrepretation of this would be that he may be able to claim PC without the capital in the house being counted - but I am relying on the phrase "former partner".
The example given is not useful in the circumstances the OP has outlined.
But I can't find any relevant case law to support my intrepretation of these PC regulations, and I think these legal decisions would dictate how the regulations are to be applied.

WillowCat

You mention that three years ago there was no equity in the property.

You will need an up to date valuation, but if the value of the property, less 10% (notional costs of sale) less the mortgage and then divided by 2 is less than £10,000 (when added to any other savings) then you're OK anyway.

If the resulting sum is more than £10,000 then PC may still be awarded but reduced as mentioned in an earlier post.