Terms & Conditions

[Martin Giles]

Have received a claim from a man who, having been made redundant has taken out a second mortgage on his existing property and is using the money to build another one, presumably once built he will sell it. The money is released to him in amounts of £30k – £40k at a time and he then uses this not only to meet the building costs but also to meet all his living expenses.

I am not sure as the correct way forward with regard to assessing the claim and would be grateful for comments. IS he over the £16k capital limit each time the monies are released to him, until spent,with regard to the property being built does it not itself become a capital asset over £16k ??

[Anonymous]

Presumably, once built he will sell it…

Is he doing this a self-employed property developer? capital assets disregarded? (always and forever)

Or is this a second home/personal asset? even as just a plot could fall to be taken into account as capital.

Who decides when/how he gets more “redundancy” money? is it up to him or not?

[Mikeb2]

Very cheeky

[jason squire]

As the mysterious masked assessor says, that plot of land and whatever bricks are left on it must be worth at least £16k now…

[peterdelamothe]

If the claimant takes money out of their house …or pension….or anything else that is disregarded then it is going to be treated as their capital. Investment in a second property will not normally matter….it is possible they could have become self employed etc somewhere down the line but I doubt that will be an issue now.

In a full service UC area then terminate the claim and thats that. New claim would be for UC

[Author]

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