Capital from 2nd property

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  • #31646
    wotherspoon
    Participant

    I have a lady who was previously left a house in a will. She did not want the property and has been for several years trying to get rid of it.The lawyers she used have since been struck off and she has made a complaint to the Law Society regarding their handling of her request. The new lawyers are unable to handle the re-conveyancing of the property until a decision is made by the Law Society so technically this lady still owns the property. She never declared this to either Housing Benefits nor DWP. She entitlement to IS ceased as she was awarded IB. It then came to light she had a second property. She appealed against the decision not to award IS. She has been to a Tribunal hearing and according to the lawyer it was decided that she should be awarded IS for a 3 month period while the law society made a decision on her complaint about the former lawyer. However it appears that IB is still in payment.
    According to the LA1 the property is worth about 60k but it is derilict inside. Do I request a valuer goes out to value the property and include it as capital, or do I wait for the out come of the law society. What happens if she was’t trying to get rid of the property for HB purposes that she just didn’t want the property.

    #88494
    peterdelamothe
    Keymaster

    For the period that your claimant was on IS, you can ignore the capital. For the rest of the time, you do need to get a valuation and this should take into account the state of the dwelling. Whether you can disregard it will depend on if it is up for sale and from when (other disregards might apply) ; you need to read through Schedule 6 – capital that is disregarded.

    Whether she “wanted” the property is irrelevant; it does not help her position that she did not declare it.

    #88495
    Anonymous
    Guest

    Although she only needs to be taking “reasonable steps to dispose of the proeprty” for it to be disregarded, so it could be that leaving the conveyancing in the hands of a qualified solicitor and the fact that no sale can go through pending the law society investigation are reasonable steps.

    #88496
    Kevin D
    Participant

    I don’t see how a dispute with “lawyer 1” can possibly prevent the sale of the property. Am I missing something here?

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