I don't see how she can win the appeal against the decision on the Feb 17 claim; as a fact she was a long lease holder at that point.
For the most recent claim. she's no longer a long lease holder so that can't bar her. You're right that as a former long leaseholder she is barred unless she can prove she had to give it up. I doubt very much that there is any agreement between her and her son about him loaing her £30k to clear her DLA debt and it being secured against the lease. I'm not sure how she could meet the exception to 9(1)(ha).
I also think there is a deprivation argument to be made in the alternative. It seems she has given up the lease (worth £98k) to repay her son for paying off her debt (£30k), so losing out on the balance if she had sold the lease on the open market. If he has paid her for it then surely she will have excess capital?
