Property value on UC claim

[Slinkyminky22]

When completing a universal credit claim, how do I work out the value on the "owning property or land other than your own home" box?

So say the property is worth £20,000
Balance on the mortgage is £10,000

Do I put £20,000 in the box, despite the fact I don't/can't earn that amount from the property. Or do I put £10k or another amount?

Thanks for any wisdom.

Is it other than your main home? Like a second home?
The value is its value

I think it means the property value, as in market value

Anything over 16k will surely stop you claiming UC?

They will expect you to sell the asset.

As others have said, it's asking for the value, not the equity. So in your example you'd put 20 (not 10)

Yes a second home.

I've just noticed it says net value.

If I put in 20k it would push me over the savings limit, that's why I questioned it because in that case surely anyone who owned a second property, even with no income from it, wouldn't be able to claim UC?

I'm no use with finances and find UC so complicated.

Are you serious that you think people who own more than one property should be able to claim Universal Credit? Jeez, the world has gone mad...

I think that is kind of obvious you can’t claim UC if you own a second home.

They expect you to sell any assets over 16k apart from your home.

Loads of people claim benefits and have property abroad, which is also not allowed. These are usually seasoned benefit cheats who don’t care about future prospects other than scamming though.

It's the equity that is important. So if you own a second home and equity is more than 16k you won't get UC unless property being sold , then it can be disregarded for a period of time. however if it's asking for value then that is what you put.

Luckily the world isn't as black and white as that, and if you have a low household income you are entitled to UC.

Thank you for the useful replies.

do you rent the property out ?

Yes it is rented out.

It's not obvious at all. There is literally a box on the form dedicated to those who do own a second property and claim UC.

I think they will expect you to sell it rather than claim UC , or could you put the rent up to bring in more income ?

Does this help? ukcareguide.co.uk/can-i-get-universal-credit-if-i-own-a-property/

I think it’s the value minus any outstanding mortgage ? So if it’s over 16k it will put op over the savings limit

If you are unsure then put the market value of the property and put a note in your journal. UC should then ask you for more information, they will usually send you a form to complete. You can own a second property and still be eligible for UC if for example you are renting the property out to a close relative who has limited capability for work or has reached pension age. The value may also be disregarded temporarily if you are attempting to sell it. If you are moving via Managed Migration capital of over £16,000 is disregarded for a year.

Sorry but it is likely you won't be entitled to UC. The house is likely to be worth over £16k. At least you are honest though. Saw a Facebook post where it was obvious they hadn't declared three properties they owned.

I am guessing you were on Tax credits....

You aren't that low income if you are getting rental income as well as benefits/wages. Kind of glad this tax credits is being ended.

Report them.

I suspect somebody from that group did.

Net value means the market value with any costs ‘netted off’. So, the net value to you is the market value minus mortgage.

So in your example, £10k.

Wow, stunned that someone would expect UC when they had a second home!! What a world….