Universal Credit & Income

HillStreetBlues

Nikster73 said:

So in theory you would be expected to have a valuation  carried out on the property before you claim UC??

If you have no intentions on selling the property, why is the capital taken into account? I'm assuming you would be expected to sell the property rather than make a claim for UC?

From 31st March there will be no tenants in the property, so this then changes everything.  There would be no rental income at all.

Because it stops people putting their money into property and then claiming UC
For example if I had £100k, I  could by a property to rent and then claim UC.

NedS

Nikster73 said:

So in theory you would be expected to have a valuation  carried out on the property before you claim UC??

If you have no intentions on selling the property, why is the capital taken into account? I'm assuming you would be expected to sell the property rather than make a claim for UC?

From 31st March there will be no tenants in the property, so this then changes everything.  There would be no rental income at all.

UC can assign a value based on the value of similar properties in your area. If you are actively trying to sell the property then clearly a valuation will exist.

If you have no intentions of selling the property, presumably you have some other way of supporting yourself? If not, then it is reasonable to think you might sell the property to support yourself rather than relying on tax payers funds via a means tested benefit. Put simply, if you have the means to support yourself then you would be expected to do so.

You would complete form A64a based on the circumstances at the time - in which case the property may well be empty at the time you complete the form. If there are any changes in circumstance subsequently, you must notify DWP of the changes.

tightauldgit

Nikster73 said:

So in theory you would be expected to have a valuation  carried out on the property before you claim UC??

If you have no intentions on selling the property, why is the capital taken into account? I'm assuming you would be expected to sell the property rather than make a claim for UC?

From 31st March there will be no tenants in the property, so this then changes everything.  There would be no rental income at all.

It's taken into account because you own it as an asset which has value. When the tenants move out it will change nothing because you will still own it. 

You don't need to value it but you should have an idea of what it's worth, no? 

Nikster73

There is a mortgage amount owed of around £120k.  I think the property would be valued around £140k.  
With all the complications around it.  I would rather not make a claim for UC

maisie_cat

poppy12345 said:

maisie_cat said:

I believe that a property you own but do not live in is treated as capital for UC purposes so possibly takes you above the £16k

It depends who's living in it. In some cases in can be disregarded.

Do you know what circumstances a property not lived in might be disregarded. I know somebody who owns a property her parents live in and claim housing benefit for but she cannot claim UC because she owns the property.

Alice_Holt

maisie_cat said:

poppy12345 said:

maisie_cat said:

I believe that a property you own but do not live in is treated as capital for UC purposes so possibly takes you above the £16k

It depends who's living in it. In some cases in can be disregarded.

Do you know what circumstances a property not lived in might be disregarded. I know somebody who owns a property her parents live in and claim housing benefit for but she cannot claim UC because she owns the property.

   Have a look at:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1136904/admh2.pdf


Your friend's parents need to be aware that a HB claim in those circumstances, could possibly be viewed as a contrived tenancy. Has the LA been supplied with full information of the close relationship between landlord and tenants?

NedS

Nikster73 said:

There is a mortgage amount owed of around £120k.  I think the property would be valued around £140k.  
With all the complications around it.  I would rather not make a claim for UC

So there is around £20,000 of capital value in the property.

HillStreetBlues

NedS said:

Nikster73 said:

There is a mortgage amount owed of around £120k.  I think the property would be valued around £140k.  
With all the complications around it.  I would rather not make a claim for UC

So there is around £20,000 of capital value in the property.

As there is a cost to selling the house would the surrender value of the property be £126k, so capital £6k?

Is that how surrender value works?

NedS

HillStreetBlues said:

NedS said:

Nikster73 said:

There is a mortgage amount owed of around £120k.  I think the property would be valued around £140k.  
With all the complications around it.  I would rather not make a claim for UC

So there is around £20,000 of capital value in the property.

As there is a cost to selling the house would the surrender value of the property be £126k, so capital £6k?

Is that how surrender value works?

I have no idea - a decision maker would determine the value and if any disregards were to apply once the claimant has completed form A64a

HillStreetBlues

Hopefully someone can confirm if something has a cost to sell, 10% of the price can be deduction as surrender value.

It would make sense as if you sold a house for £140,000 once all fees are paid you wouldn't end up with £140k