Shared Ownership Split?

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  • #33971
    Anonymous
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    Here’s another scenario my fertile brain has come up with!

    Where a claimant is in a shared ownership scheme, and have a mortgage for – say – 50% of the property. Will LHA apply to the rental element of the property? And if so, will it apply on a percentage proportion?

    For example, we have claimants who have a mortgage for £100,000, whose rent (including all kinds of eligible services) amount to the same as the rent would be on the same kind of property. So a house bought for £140k is having £100k mortgage paid by IS and 100% rent at £90 odd quid a week.

    With LHA, would consideration be given to the proportion split between how much property is rented and how much is mortgaged? Or would these still be RO decisions?

    #94720
    Anonymous
    Guest

    These are mostly RSL aren’t they? If so, they won’t be LHA cases.

    But in private sector cases, I don’t see any distinction between shared ownership and any other kind of eligible rent. From 1/10/07, private sector shared ownership schemes are eligible for HB in the normal way and from April 08 subject to LHA in the normal way. In particular, I cannot see anything in Reg 13C(5) (cases not subject to LHA) or 13D(12) (definition of cap rent) that would prevent such cses from being assessed under the normal LHA rules.

    #94721
    Anonymous
    Guest

    Which means that, in normal cases where the rent is significantly lower than ‘normal’, they will all get the £15 cap.

    Hmmmm

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