Income based JSA and savings in 2nd property

[Lisestar]

Hi

 

Having moved back to the UK after living in Spain for 7 years myself & my partner applied for income-based JSA as we were told we would not be entitled to contribution based JSA as we hadn't made any contributions for the last 2 years.

 

Our claim was refused on the basis we have savings over the £16,000 limit. I have a flat in my sole name which is rented out. It made a loss during the last tax year so there was no rental income. There is about £30,000 worth of equity in the flat and having phoned to obtain further info as to why the claim was refused, I was informed it was on the basis of the equity in the property.

 

The flat is currently rented however the tenant is due to move out next month & we are going to move back in. My query is - if we reside in the flat as our principal home, is the equity still taken into account and we would still get nothing? And if it is disregarded can we make an appeal now or would we have to submit a fresh claim after we have moved back in?

 

Many thanks

 

Lisestar

[flumps1976]

How many proprties do you own with or without a mortgage?

[Lisestar]

Sorry, I didn't make that very clear, I only own one property, the flat in question. We are currently staying with my parents. The flat I own is subect to an interest only mortgage. The mortgage itself is approximately £60,000 and the flat is worth approx £90,000.

[flumps1976]

Yes they are treating it as £30k equity which is obviously over the allowed £16k threashold.

Once you move back in to the flat this equity will no longer be treated as equity and you will need to make a new claim when you move in to the flat and may qualify for some help towards the mortgage but that will be dependant on your circumstances at the time.

You can appeal the decision but it is highly unlikely that te decision will change.

[id6052]

the value of the property that you live in is disregarded, so assuming you have no other income, you should be able to make a claim for income based JSA and also help with your Council Tax (before April you would get 100% help through Council Tax Benefit - after Aporil, each Council will provide its own local Council Tax support scheme, the amount of help offered will vary from Council to Council, some still offer 100%, others significantly less)