Universal credit entitlement is part own another property

living25

I part own a property with siblings that was left to us when a parent passed away, I do not live in the property as it already has a tenant,

I rent a property for myself but have been told I cant claim UC because of shared ownership on another property

my share of the income from the shared ownership property covers my current rent 
I only receive PIP and no other income and have no savings 

any help or advice would be much appreciated

Newcad

What is the value of your share of the other property? Not the rental income that you receive from it but the property value.

Eg. If it's worth £100k and you have 3 siblings then that's £25k each.

If your share of the value is above £16k then that would disqualify you from claiming UC.

Arguments could be made about the valuation but ....

peteuk

You part own a house you do not live in, so this will be classed as capital. If that capital is over £16K then you’re not entitled to UC.

The calculation for this is the value of the house today minus 10% (for selling fees, solicitors etc.) then minus the mortgage (if any) 

I assume that as the property was passed on to you then there is no mortgage, so therefore the capital is the market value of the house minus the 10% and then split between the amount of owners.

living25

Thank you so much for clarifying this x

living25

I cant force the sale and have no other income so to say its a struggle is an understatement
many thanks for your help 

itsthelittlethings

living25 said:

I cant force the sale and have no other income so to say its a struggle is an understatement
many thanks for your help 

With the nicest possible intent, why can you not force the sale?

itsthelittlethings

Surely your siblings do not want to see you struggle like this? I don’t know where you stand legally with forcing a sale but can you not explain to them that you desperately need to access your share of the money?

TELLIT01

If the other siblings want to keep the property, are they in a position to buy you out?  At least then you would have money to live on, although probably still no entitlement to UC.

living25

Unfortunately I cant but I am glad I have a better understanding 
many thanks 

MyRealNameToo

living25 said:

I cant force the sale and have no other income so to say its a struggle is an understatement
many thanks for your help 

Why not sell your share to your siblings?

Northern_Wanderer

Could you move into this property? Maybe someone else could clarify if you were able to pay rent to your siblings for this "jointly owned property" might you then be able to claim UC housing element for any rent you pay on this home? I know there are rules about "contrived" tenancies for family members but.....

Out of interest, is the current tenant related to your family in any way and have any limited capability for work? Sometimes there can be a disregard on a property.