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zaksmum
Posts: 5,529 Forumite
Does anyone know, please, if SMI is payable when a property has been remortgaged?
Friend had to give up work due to severe ill health. Her house has been remortgaged, originally to improve the property with a new kitchen and bathroom extension and a fourth bedroom. Then for further improvements such as double glazing, new roof and central heating.
When she divorced a few years later, she remortgaged again to buy her ex husband out of the property where she now lives alone.
Each remortgage was not for the full value of the house but from an original purchase price of £18K in the 1982 she now owes about £35K.
She has applied, after 13 weeks on ESA, for SMI and the forms have just arrived. They ask what the remortgages were for and of course she will be totally honest with them. However she has not kept receipts from the 80s/90s when the work was done on the house.
Does she have any chance that SMI will be granted?
Friend had to give up work due to severe ill health. Her house has been remortgaged, originally to improve the property with a new kitchen and bathroom extension and a fourth bedroom. Then for further improvements such as double glazing, new roof and central heating.
When she divorced a few years later, she remortgaged again to buy her ex husband out of the property where she now lives alone.
Each remortgage was not for the full value of the house but from an original purchase price of £18K in the 1982 she now owes about £35K.
She has applied, after 13 weeks on ESA, for SMI and the forms have just arrived. They ask what the remortgages were for and of course she will be totally honest with them. However she has not kept receipts from the 80s/90s when the work was done on the house.
Does she have any chance that SMI will be granted?
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Comments
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Slim to none, even if she had the receipts.
She has remortgaged three times. They might allow one in extenuating circumstances, three she has no chance.0 -
marliepanda wrote: »Slim to none.
Can you say why that is, marliepanda please?0 -
Smi is to keep a roof over someone's head, not pay for home improvements or to pay off an ex partner. Like I said one for home improvements a long time ago may be considered, but three is not. She could have paid her mortgage off probably three times by now.0
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marliepanda wrote: »Smi is to keep a roof over someone's head, not pay for home improvements or to pay off an ex partner. Like I said one for home improvements a long time ago may be considered, but three is not. She could have paid her mortgage off probably three times by now.
Borrowing for essential improvements would be considered,and borrowing to buy out an ex partner could also be considered keeping a roof over ones head,this is an area that is never black and white and has several shades of grey,the best thing is to apply0 -
Only one of those seems to be 'essential improvements'
A fourth bedroom and new kitchen/bathroom is unlikely to be considered.0 -
Thanks woodbine and marliepanda. Regarding paying off the ex husband though...she did that to keep a roof over her head.
Otherwise the house would've had to be sold and she'd have been homeless.0 -
As woodbine has said, she has nothing to lose by applying. The worst she can get is a refusal. Each application is treated on its individual merits. Whilst I agree that the chances are not good, there is always a chance.0
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Thanks woodbine and marliepanda. Regarding paying off the ex husband though...she did that to keep a roof over her head.
Otherwise the house would've had to be sold and she'd have been homeless.
If the house has been sold she would have had her half of the money from the sale. She would then have been able to afford a deposit and first months rent on a house plus have some savings. So she wouldn't have been homeless.0 -
Is she on contribution based as she gave up work as you only get smi on income based as well.0
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This link might give you some info..SHELTER..SMI ...
Apparently she should be aware that any payments she might receive may be reduced if her home is considered to be more expensive or larger than her needs.0
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