Partner on spouse visa has mortgage abroad + i'm on UC/PIP, will it affect me?

addywadd

So my partner came here not too long ago, she has a property abroad which she's still paying the mortgage for (she bought it before she met me).

She's also not allowed to claim no benefits here which is fine.

She's also not working right now (looking for work), so i'm helping her with some payments which isn't much.

I'm wondering if her having mortgage payments monthly abroad will affect my UC (work capability) or PIP (i'm disabled) in any way?

Thank!

HillStreetBlues

PiP isn't income based so that will be fine, sorry can't offer advice on the UC claim.

marcia_

addywadd said:

So my partner came here not too long ago, she has a property abroad which she's still paying the mortgage for (she bought it before she met me).

She's also not allowed to claim no benefits here which is fine.

She's also not working right now (looking for work), so i'm helping her with some payments which isn't much.

I'm wondering if her having mortgage payments monthly abroad will affect my UC (work capability) or PIP (i'm disabled) in any way?

Thank!

  Generally someone can not claim UC if the claimant owns a property they do not live in. Although your partner cant get benefits they still take the partners income in to account assessing your benefits so probably look at the house too?!

Muttleythefrog

Your PIP will be unaffected... it's a benefit specifically for you and you can do what you like with the payments.

However.... for your Universal Credit claim she should be added as a claimant assuming you live together as couple (is this the case or do you live separately?). The method is she claims and is then linked to your claim. She will then be subject to a Habitual Residence Test which will look at her immigration status (they'll likely request details of her BRP) and then she will be turned down as she is subject to No Recourse to Public Funds... payment would then continue as a single person claim.

But..... and this is a HUGE BUT... there is an issue here... if she owns property then this should be declared to U/C as it is an asset you have as a couple (albeit in her name)... and normally capital over £16k would preclude payments for U/C. Although she would be denied payment of U/C (and other means tested/disability benefits) if you live together as a couple then her income, assets, savings will normally be considered.

I would see what other people advise (I'm recovering from an unexpected serious illness that does at times cause me confusion!) but my reading here is the mortgage payments are not an issue at all but you will likely lose U/C (and any other means tested benefits) due to having property you do not live in which I assume is valued over £16k.

addywadd

But..... and this is a HUGE BUT... there is an issue here... if she owns property then this should be declared to U/C as it is an asset you have as a couple (albeit in her name)... and normally capital over £16k would preclude payments for U/C. Although she would be denied payment of U/C (and other means tested/disability benefits) if you live together as a couple then her income, assets, savings will normally be considered.

I see, I never knew stuff, thank you for informing me! Gosh i'm rather worried now. I'm going to have to get on it this week and give them a ring. What am i looking to lose just my standard UC money or work capability or both even? since her property is over 16k value.

Muttleythefrog

addywadd said:

But..... and this is a HUGE BUT... there is an issue here... if she owns property then this should be declared to U/C as it is an asset you have as a couple (albeit in her name)... and normally capital over £16k would preclude payments for U/C. Although she would be denied payment of U/C (and other means tested/disability benefits) if you live together as a couple then her income, assets, savings will normally be considered.

I see, I never knew stuff, thank you for informing me! Gosh i'm rather worried now. I'm going to have to get on it this week and give them a ring. What am i looking to lose just my standard UC money or work capability or both even? since her property is over 16k value.

All means tested benefits... so all U/C... and anything like Council Tax Discount if you claim it. PIP is safe as not means tested.

It's unfortunate that advice wasn't given before she moved here as yes this could leave you with significantly less income but more expenses. On the other hand if she is looking for work and was to get work then the income from that work also would be considered for means tested benefit like U/C and so it is possible you'd lose such anyway (or at least face reductions in) once she is working.

Yes plenty to consider when foreign partner moving in... been there.. done it!

Once she is no longer subject to immigration control (such as with Indefinite Leave to Remain status which usually will take minimum 5 years lawful residence to apply for) then the NRPF condition will be removed and benefits entitlement would be 'normal'.

Grumpy_chap

addywadd said:

 her property is over 16k value.

Just for clarity, I understand it is the equity in the property that is important, not the value of the property.  I assume, though that the equity (property value less mortgage) is still over £16k so this is an irrelevant detail.

addywadd

Grumpy_chap said:

addywadd said:

 her property is over 16k value.

Just for clarity, I understand it is the equity in the property that is important, not the value of the property.  I assume, though that the equity (property value less mortgage) is still over £16k so this is an irrelevant detail.

Oh I see the market has already gone and it's lower than the mortgage. For example the market value is 80k and and remaining mortgage is 100k (remaining to be paid), according to my understanding of what you mentioned ,80k - 100k = - 20k does that mean we don't actually go over the 16k UC threshold?

Muttleythefrog

addywadd said:

Grumpy_chap said:

addywadd said:

 her property is over 16k value.

Just for clarity, I understand it is the equity in the property that is important, not the value of the property.  I assume, though that the equity (property value less mortgage) is still over £16k so this is an irrelevant detail.

Oh I see the market has already gone and it's lower than the mortgage. For example the market value is 80k and and remaining mortgage is 100k (remaining to be paid), according to my understanding of what you mentioned ,80k - 100k = - 20k does that mean we don't actually go over the 16k UC threshold?

She'll need to declare it (probably when applying for U/C it will ask about such) but my understanding is yes the capital may be considered as zero if you owe more in mortgage than the marketable value of the property. Sorry I had assumed the value within the property would be more than £16k given normally a deposit would be likely more. Sounds like a case of negative equity however.

Someone else may be able to find to Decision Maker guidance specific for capital calculation as I'm not getting lucky today... I'm finding everything except...but here is a decent reference that should be satisfactory for purposes. The link also covers the possibility of disregard while attempting to sell property (probably not relevant here as there may be no equity to disregard but if in future the property did hold significant equity and you were still on U/C and decided to dispose of the asset).

https://www.entitledto.co.uk/help/own-other-property

Is the property generating an income....e.g. being rented out?

huckster

When declared a form is provided for claimant to complete regarding second property.

UC decision maker would expect a valuation to be provided by real estate agent in the country where the property is situated to confirm current market value. 

If not provided then it would stop claim from proceeding until the decision maker is able to establish likely equity available.  When calculating they deduct 10% for sale costs.