am I eligible for Universal Credit if my property is in negative equity?

peteuk

duvet_day666 said:

Also, I wasn't very clear. The EA put it on at £210K but it was really optimistic. That was way above what it was really worth at that point. hardly anybody was selling cladded flats at that time, nobody knew what they were worth. 

Totally understand EA put my Dads at £290-300K sold at £190K - other EA put it at the £240-250K.  Price crept down and down over the period of time.  House similar in the area selling at £220K.  But with no buyer it’s worth nothing, it’s just bricks and mortar.

Even with the EA overpricing it, anything above £160k and you’re not in negative equity because the value of the property is above the settlement figure of the mortgage. Any capital above £16K means you cant claim UC.  

You've noted the mortgage of £156K (approx) so any valuation above £172K means your above £16K in capital. 

HillStreetBlues

peteuk said:

duvet_day666 said:

Also, I wasn't very clear. The EA put it on at £210K but it was really optimistic. That was way above what it was really worth at that point. hardly anybody was selling cladded flats at that time, nobody knew what they were worth. 

Totally understand EA put my Dads at £290-300K sold at £190K - other EA put it at the £240-250K.  Price crept down and down over the period of time.  House similar in the area selling at £220K.  But with no buyer it’s worth nothing, it’s just bricks and mortar.

Even with the EA overpricing it, anything above £160k and you’re not in negative equity because the value of the property is above the settlement figure of the mortgage. Any capital above £16K means you cant claim UC.  

You've noted the mortgage of £156K (approx) so any valuation above £172K means your above £16K in capital. 

Not forgetting cost of selling, I believe it's normally 10% of value but can be more. So a valuation of £172k would give a about £155k, so no capital if mortgage owed is £156k

Spoonie_Turtle

Regardless of value etc., right now if you are actively trying to sell the property it should be disregarded anyway. 

Whatever you get vs whatever you owe will then determine if you're eligible for UC once it's sold.

tomtom256

It could also be disregarded as capital, as you are taking steps to sell it.