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?

Derek

A quick answer to the second part of your second question. Check when the second house was purchased. Dispositions of property after 1996 are subject, under the Land Registration Rules, to a declaration on the Land Registration forms by the joint legal owners as to whether they intend to take the equitable title as joint tenants or tenants in common.

If they take as joint tenants then they are each entitled to 50% of the proceeds of sale irrespective of the actual contributions of each.

If there is no documentary evidence of intention to take as joint tenants and no intention can be inferred from their conduct then each will be entitled to the percentage proportion of the proceeds of sale of their actual cash contributions.

Regards
Paul

Paul

Many thanks for that - very helpful.