This would be capital that would have to be taken account of under reg 21, (HB60+ regs), if the claimant is to be treated as possessing it. Under reg 25(1) HB 60+ regs, it also says that nothing counts as income unless the law says it does.
The law says that property is taken into account unless it falls into a disregarded category.
You are quite correct in the application of the 26 week rule in this case. This is extended for 26 weeks from the date of the property being put on the market for sale. (HB 60+regs sched 5ZA para 6). This can be extended if it is reasonable to do so.
However, if the lady in question has a reversionary interest in the property, it is disregarded. (HB 60+regs sched 5ZA para 5).
If there is any outstanding mortgage on the property this is disregarded. (HB 60+ regs 40(a)).
So I would argue that unless the lady has taken steps to establish her right to half the property in law with a view to selling this, you are correct in treating this as capital in any HB / CTB assessment.
If I was advising her as to her rights, I would advise her to persue this latter course of action, as this would establish either her right to the property or the fact that she was denied access to her capital, in which case you could argue that she had tried to secure her rights the property in order to effect a sale, but was unable to access this due to any order imposed by the relevent courts. 😕
You may be able to guess that I have just been doing some training for some of our staff on second properties and how to value! :23:
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