Client lived 18 years in house owned solely by partner - had 2 children. They bought another house in joint names, intending to sell the first one. Partner then decided to separate. He is living alone in the jointly owned house; client & children in the one solely owned by ex-partner. He is paying mortgage on both but cannot afford to continue this. Tenancy agreement set up on the solely owned house with client as tenant. She claimed HB. This disallowed under Reg. 9(1). Queries:- 1. Is there any way round this - i.e. any chance of success if decision appealed? 2. In any HB decision will client's interest in the jointly owned house always be treated as capital, or are there any exceptions? Also, if it is capital is it assumed she owns 50% of the equity and is it only this amount (less 50% of the 10% allowance for selling costs) that would be capital?
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