I have recently met a client who owns her home jointly with her daughter.The house is an ex council property which was purchased using the mothers discount and the daughter pays the mortgage the mother makes no financial contribution to the mortgage.My client now feels she needs sheltered accomodation and has asked if she will be made to sell her half share in the home to pay her rent or will she be eligible for housing benefit,her daughter lives in the house with her 2 children

Hi Chris,
While there would be no requirement for the home to be sold, your client would not be able to get Housing Benefit on the grounds that she has capital over £16,000, unless she can get Guaranteed Pension Credit, but obviously this would be dependant on the amount of tariff income that would be taken into account as well as her other income.

Also, as her discount as the former tenant of the property may have been up to 60% of the value at the time of purchase, the LA may conclude that she owns 60% of the property, as effectively the daughter is only paying a mortgage based on 40% of the properties value on purchase. I can remember this being applied on one occasion when I worked in Housing Benefits in exactly the scenario you describe.

Hope this helps

Andy

The right to buy discount can create a beneficial interest in the home. Springette v Defoe 1992 (Court of Appeal).

Regards
Paul

But what is her interest in the house actually worth? Who is going to buy it when the daughter and her children live there and cannot be evicted? Is it not this market value that has to be considered rather than the notional value arrived at from the discount and a straight % split of vacant possession value? Or have I misunderstood?