Deprivation of capital when selling property in universal credit application
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underthesea
Posts: 97 Forumite
just needed some advice 
My partner and I are splitting up. I paid a large majority into our property in deposit and other costs. Both of our names are on the mortgage. My partner is willingly going to withdraw from the mortgage so my name will be on it solely and it will be a stretch to pay. As a consequence, she will have nothing but the reasons it's done is for our child to retain a familiar place and for myself who put the majority into the property not to lose it which is fair.
My partner will apply for universal credit but the fear is not getting it because they may deem this as purposeful 'Deprivation of capital'
Has anyone faced this situation or could provide some advice?
What can be said to the decision-maker to help?
Summary; splitup, partner with no savings will be homeless and scared UC won't be given.
We need to live separately for the health of our child and for the environment not to become toxic. We can't live together, we need to split. I wouldn't want my partner not having a place to live. I want to be good and I care enough to want to help.
My partner has no savings.
Don't know what to do. Thanks for any helpful advice!
My partner and I are splitting up. I paid a large majority into our property in deposit and other costs. Both of our names are on the mortgage. My partner is willingly going to withdraw from the mortgage so my name will be on it solely and it will be a stretch to pay. As a consequence, she will have nothing but the reasons it's done is for our child to retain a familiar place and for myself who put the majority into the property not to lose it which is fair.
My partner will apply for universal credit but the fear is not getting it because they may deem this as purposeful 'Deprivation of capital'
Has anyone faced this situation or could provide some advice?
What can be said to the decision-maker to help?
Summary; splitup, partner with no savings will be homeless and scared UC won't be given.
We need to live separately for the health of our child and for the environment not to become toxic. We can't live together, we need to split. I wouldn't want my partner not having a place to live. I want to be good and I care enough to want to help.
My partner has no savings.
Don't know what to do. Thanks for any helpful advice!
0
Comments
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\Can't help with your main question. However.underthesea wrote: »My partner is willingly going to withdraw from the mortgage so my name will be on it solely and it will be a stretch to pay.
This is not possible. No bank will remove someone from a mortgage. EVER.
You can re-mortgage yourself with consent if you can pass affordability for getting a sole mortgage.
It however, sound as though this will not be possible.
Better sorting that point first I think.0 -
\Can't help with your main question. However.
This is not possible. No bank will remove someone from a mortgage. EVER.
You can re-mortgage yourself with consent if you can pass affordability for getting a sole mortgage.
It however, sound as though this will not be possible.
Better sorting that point first I think.
This is what is happening. I'm getting a family member to come in with me to afford this. Just now worried for my ex-partner 0 -
do you own the property as joint tenants or tenants in common....(what % split?)
How much is her share of the equity?0 -
Capital assets disregarded in full
(W1.180) xix
the home formerly occupied by the claimant which is still occupied by the former partner, following estrangement or divorce, who is a lone parent. The home should be disregarded for as long as it is so occupied
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/365782/hbgm-bw1-assessment-of-capital.pdf
Deprivation of capital therefore does not apply0 -
Thanks for this.
There is no equity as throughout the years, I have paid for the majority of living. This has been agreed with my partner. My partner will have no savings and I don't want anyone to be on the streets.0 -
Capital assets disregarded in full
(W1.180) xix
the home formerly occupied by the claimant which is still occupied by the former partner, following estrangement or divorce, who is a lone parent. The home should be disregarded for as long as it is so occupied
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/365782/hbgm-bw1-assessment-of-capital.pdf
Deprivation of capital therefore does not apply
I believe this is about a claimant claiming Housing Benefit, not Universal Credit.
Plus, the OP does not say that the child will be living with him and therefore he would not be classed as a lone parent.
I believe this is solely about the partner having a beneficial interest in the property (if she is not on the deeds, either as joint tenant or tenants in common) which she is not pursuing.
I suspect that the OP is going to need legal advice to sort out whether the partner has any beneficial interest in the property.
Although the OP says that the child will have a familiar place that they know I am assuming that the OP means when the child visits.
OP, you need to confirm whether the deeds of the house is in your sole name/joint names/tenants in common.
Plus, whether the child is going to live with you.0 -
The partner cannot just say that they have agreed not to pursue any beneficial interest in the property. (I am presuming that you had no written agreement when you bought the property about what would happen if you ended your relationship?)
This is what deprivation of capital would hinge on. If she was legally found to have a beneficial interest in the property and 'gifted it' to you then this would be deprivation of capital.
You say that there is no equity in the property. Do you really mean this or no equity for your ex partner?
Equity would be the difference between what you could sell the property for minus the outstanding mortgage loan (minus 10% for costs of selling)0 -
If it helps my partner, the child will be with my partner as we aim to be flexible and open with how time is shared with us. We will be on good terms.
No equity for my ex as the amount that was put in minimal vs mine so this is going to be fine and it will also mean my partner is under the 16k needed to claim UC
We were tenants in common.
My partner will not be on the deeds when the claim for UC will be made.0 -
underthesea wrote: »If it helps my partner, the child will be with my partner as we aim to be flexible and open with how time is shared with us. We will be on good terms.
No equity for my ex as the amount that was put in minimal vs mine so this is going to be fine and it will also mean my partner is under the 16k needed to claim UC
We were tenants in common.
My partner will not be on the deeds when the claim for UC will be made.
I don't think it's as straightforward as that. Regardless of who paid what the ownership is defined in law. If you are tenants in common you can have different percentages but I think there needs to be a document defining this. However this is not by area of knowledge.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Regardless of this, we've agreed due to what we've put into the place the amicable split and signing over to myself. We do have docs saying we have unequal shares respectively. To get to the question;
Will this impact UC?0
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