Universal Credit, Separation and Capital

HillStreetBlues

Muttleythefrog said:

Yeah you're not kidding.. the admin alone has been tough..lol.

Parental gift it would be (specifically to buy home to live in).... and if wife was involved I would say she'd be buying me out of my half share and remain in our current property owning it alone

Would it not be a case of effectively me selling my share of our home, receiving also a gift to make up shortfall then buying ASAP a new property to live in which would be capital discounted? Are you thinking I would need to set their contributions in effect as loans to be repaid (to avoid deprivation of capital) or am I misunderstanding? 

It depends on how it's structured. I'm looking at it money wise, If someone gave you £100k it then that becomes yours. As it now yours if you gave £45K away then it might be DoC. But if it was £65k gift & £45k loan, then the £45k is a repayment when it's paid.

Yamor

Muttleythefrog said:

Yamor said:

There is always a possibility that your share could be valued at lower than £16k. Plenty of case law on the issue...

Oh.... what factors can bring it down aside from things like mortgage owed? We own the leasehold property outright... realistically its market value is what we paid.. so £130k. Are you thinking of legal agreements for separation or divorce that distribute different share as part of the overall agreement?

When you have a joint owner who is unwilling to sell, then this can reduce the market value, sometimes even to zero. You should be able to find a lot of information by googling, but here is one relevant link:

https://www.rightsnet.org.uk/forums/viewthread/14832

Muttleythefrog

Yamor said:

Muttleythefrog said:

Yamor said:

There is always a possibility that your share could be valued at lower than £16k. Plenty of case law on the issue...

Oh.... what factors can bring it down aside from things like mortgage owed? We own the leasehold property outright... realistically its market value is what we paid.. so £130k. Are you thinking of legal agreements for separation or divorce that distribute different share as part of the overall agreement?

When you have a joint owner who is unwilling to sell, then this can reduce the market value, sometimes even to zero. You should be able to find a lot of information by googling, but here is one relevant link:

https://www.rightsnet.org.uk/forums/viewthread/14832

Ah thankyou... yes was struggling to find... interesting.

peteuk

Dont forget that the capital is calculated (value-mortgage)-10% of value=capital. 

And is only classed as capital when it becomes a second property eg you move out.  And then your given a period of time in which its disregarded.

If your brought out and given 50%, then that monies/capital also gets 6 months disregard if your using it to buy somewhere.  This can also be extended if you can prove your buying eg have a property but not yet at the exchange/completion point.

Muttleythefrog

peteuk said:

Dont forget that the capital is calculated (value-mortgage)-10% of value=capital. 

And is only classed as capital when it becomes a second property eg you move out.  And then your given a period of time in which its disregarded.

If your brought out and given 50%, then that monies/capital also gets 6 months disregard if your using it to buy somewhere.  This can also be extended if you can prove your buying eg have a property but not yet at the exchange/completion point.

Thanks... yeah this may be the way to go. When she's able to buy me out do that and my parents can top up that with a gift specifically for purchase... a few months should be enough time to purchase with something lined up.