UC capital disregard - secretary of state appeals etc

sloth1986

Any advice appreciated please!

We currently receive UC and have no savings. My wife is on lcwra, and I get carers element while also working very limited part time on a self employed basis.

I inherited a 25% share in a property a little while ago and intend to sell my share, which I have agreed to sell privately (e.g. without going through an estate agent) at market value to the mother of the other shareholders, who do not wish to sell.
The sale is dependent on her first selling her current home, which is on the open market, though with little interest so far. If her property does not sell within the 6 months disregard period, which is fast approaching, what would be my next steps to potentially apply to secretary of state for an extension?

Due to the circumstances I don't believe my share would sell on the open market if advertised through an estate agent, so my only other option would be forcing a sale through TOLATA, which is expensive, long winded, not guaranteed, and would cause immense tensions/difficulties between family members. So, waiting for her property to sell seems like the logical choice. But would the decision maker/SoS agree?!

What 'reasonable steps to dispose of' this assett should I be taking? Should I also approach an estate agent to advertise my share as for sale?

I genuinely do want to sell the share, it'd be a very nice chunk, over the 16k, and could be used to pay off debts, invest in business etc. I see it as an opportunity to hopefully stay off UC and become financially self sufficient long term.

Any advice, especially from anyone who has been through similar, would be great.
Thank you...

born_again

Speak to UC & see if they will extend the disregard.

Can the other 3 who got a share not buy you out? Which would be by far the quickest option.

itsthelittlethings

I would imagine they will bite your hand off to extend it although not for a ridiculous amount of time. In the end you may have to force a sale.

itsthelittlethings

I'd be tempted to see if they'd accept it being sold below market value. Bear in mind that if your business takes off too much it may be hard to keep caring for your wife.

itsthelittlethings

I don't think any estate agent will give you the time of day.

TimeLord1

https://assets.publishing.service.gov.uk/media/691c86325a253e2c40d706e5/adm-ch-h2_capital-disregards.pdf?hl=en-GB

You just have to prove that you're taking the necessary steps to sell the 25% message UC as advised by Born again

You request an extension to the property disregard under ADM H2113

Grumpy_chap

Is there any extent to which the value of the 25% share of the property on the open market would be notional (and not above the UC capital thresholds) unless there is a connected purchaser to whom the other three part-owners are amenable?

I am unsure how that would be demonstrated to a DM or the likely success of that approach.

NedS

https://forums.moneysavingexpert.com/discussion/comment/81884823#Comment_81884823

In the first instance, the DM must consider if the OP is taking all reasonable steps to sell, and if they are satisfied then they can extend the disregard.

If they are not satisfied the OP is taking all reasonable steps, then DWP must value their share of the property, and deduct any outstanding debt secured against the property plus an amount for fees to arrive at a capital value.

The OP could argue that the capital value is zero as there is no market to sell their share of the property. There is some precedent for this - during covid DWP assigned zero value to second properties as they were unable to be sold during lockdown.

However, I would imagine in this case that it would be relatively straight forward for a DM to continue to disregard on the basis that the OP is taking all reasonable steps (assuming they can back up what they have said here with evidential proof such as independent valuations and solicitors letters accepting a formal offer, subject to the ongoing property chain.

sloth1986

Thank you all for your thoughts.

Unfortunately none of the other three can buy me out, so their mother wishing to buy me out is the best option I can see. They will not agree to sell (old family house, they want to let their mum live there until they inherit the remainder from her one day), which leaves me either open market (most likely impossible to find a buyer, given the other shareholders position) or forced sale (lengthy, costly, no guarantee a judge would find in my favour anyway).

Their mother has agreed to buy, it's simply a waiting game I suppose. Can I apply for the extension before the initial 6 months is up?

Yamor

Are you related to the mother, and is she already living there?

sloth1986

https://forums.moneysavingexpert.com/discussion/comment/81885064#Comment_81885064

She's my aunt, the other shareholders who do not wish to sell are my cousins. She is currently living a few doors away on the same street, working and living on another business & residential premises. It's a very small touristy village, but she wants to now sell the business (which has living accommodation) and retire to 'my' smaller property, which belonged to her mother.