UC want all my money back…

[MapleHazelLatte]

I applied for UC when I separated from DC’s father 3 years ago. I have since been living with my parents and he stayed in the house we bought together. I’ve been asking him to take my name of the mortgage to give me my share but he just has been dragging his heels about it. I applied for UC when we split up.

i then got a notification to say I was having a review phone call. Apparently someone had accused me of still being with DC’s father. I had to send all my bank statements for the last 3 years and fill out forms regarding the house. Originally I vaguely remember they did say they would disregard the house for 6 months then I heard no more.

a couple of months later I was told I had been overpaid but it was only slightly and a manageable amount to pay back.

I’ve not got another letter saying I shouldn’t have got UC since 2022 and they want ALL the money back other than the first 6 months. It’s “disallowed” I’ve worked this out to be around £30k. I have no idea what I’m going to do. Anyone else been in this situation ??

Of course it’s equity, how can you not have realised that?

As posters have said are you sure elements of UC would have been okay but perhaps the housing element no? So instead of 30k owing you actually owe a lower figure.

How are you going to afford to live now they’ve removed UC? Yes the debt is a bad thing but you need to figure out what you are going to do in the immediate term to keep them fed and cared for. I assume you aren’t paying rent to your parents? I’m guessing you are still paying on the mortgage so you need to stop doing that which might just trigger your ex to sell it.

I think you should ask UC to review their decision and speak to another organisation, like Citizens Advice or a benefits charity for guidance. I don't understand why they would see what was the marital home as equity when you don't live there and get no money from it and you have kept them up to date througout. I own a flat with a mortgage and was still able to claim UC. Have you since been able to purchase another propety (I'm assuming not, and you're still living with your parents)?

This link doesn't give UC advice, but does give basic information about options if you're both names on the Deeds

https://www.citizensadvice.org.uk/family/if-you-were-living-together/what-happens-to-your-home-when-you-separate/

I think other posters have covered this but it needs to be shown that you’re trying so evidence of house being valued and advertised with estate agent. Then if he won’t play ball evidence that you are making steps on right direction. Even an appointment with cab and written letters to ex asking for a sale.

It needs to be communicated so you explain what you are doing on the journal and ask for extensions. The ostrich approach doesn’t cover it.

Worst case scenario they make you bankrupt, which will involve selling the jointly owned house, whether your ex likes it or not, so that your equity will pay towards debt. It may be your ex will be asked to pay your equity, if not Courts will apply for house to be sold and it will be eventually and if you are 50/50 on deeds, 50% of equity should be yours.

OP, as pps have said, the value of a property you own/ part-own can be ignored by UC for 6m as standard, in your circumstances. But the value can be ignored for longer than 6m, if it is reasonable to do so.

Have you got proof that you've asked ex to sell/ take steps to sell/ buy you out etc? Eg text messages or emails? Valuation documents? The more proof you have, the better.

You've been advised to get help with this from Citizens Advice (or another advice agency -eg a Law Centre) - and I would strongly urge you to do this.

Again, as other posters have advised- an adviser may be able to first get the 6m capital disregard extended for a further period. Then, if there is still a UC overpayment, they can work out if it is correct. You may have much less capital from the value of the house than UC are assuming. The house is co -owned, and if you have a mortgage, your share of capital is what is left after both of these things are taken into account and a deduction for the costs associated with selling are also deducted .

If your ex gives you your share and it is £16k or less, you will still be eligible to claim UC (how much you receive will depend on the UC calculation).

Have you read the full thread? She doesn't live in the house (and has not done for 3 years), so it is seen as equity. If you live in a a house with a mortgage, it's your residence so not seen as equity.

Every claim has a review . There is a huge focus on working out overpayments and claiming it back . The investigation is very thorough and they do a lot of background checks . The letter will tell you about an appeal although it's highly unlikely you will get anywhere because it is dealt with the same team .

It sounds like the OP doesn't understand her legal rights and probably doesn't have enough cash to pay a lawyer.

She talks about "being on the mortgage", but doesn't mention the deeds, she hasn't confirmed whether they own as joint tenants or tenants in common, and she seems to have accepted the idea that her ex should get to keep the house and that her entitlement to it is limited to her financial contributions anyway.

In that context, can she really be blamed for not managing to force a sale of the house? It doesn't sound like she has the first clue how to go about that.

The situation has now come to a head because the government is saying that she must repay an amount of Universal Credit that exceeds the amount her ex partner says she is entitled to from the house. Clearly this would be an incredibly unfair outcome and she needs to find a way to fight it.

And as difficult as it will most likely be to force a sale of the house, she's more likely to be able to force her ex to sell a house she owns part of than she is to convince the government to waive a large debt.

The first step is to find out how the house is owned (joint tenants, tenants in common in equal shares, or tenants in common in unequal shares), roughly how much the house is worth, and how much equity is in it.

This means she needs:

• the legal documents from when they bought the house and ideally copies of any legal advice they were given by their conveyancing solicitor at the time;
• at least one current valuation by an estate agent; and
• confirmation of how much is left on the mortgage.

As an owner of the property she is entitled to get all of this information and ex is not entitled to withhold it from her.

Once she has that information she can write back regarding the UC claim and say:

• I have looked into how the property is owned and estimate that I am entitled to X amount of equity in it (better to err on the side of lowballing this estimate).
• I have not lived in the property since X date because my ex partner refuses to leave, and I also cannot afford to rent privately which is why I am living with my parents.
• My understanding based on the advice you gave me on X date is that my equity in the house would not affect my entitlement to claim UC. I now understand this advice was incorrect but I have no practical means of repaying the last three years of UC payments, which I used for the purpose for which they were intended (to live on).
• I am going to put the wheels in motion to force a sale of the house but I understand that this could take time, given that the co-owner is completely uncooperative. Until the house is sold and I can get my equity out, I have no means to repay this debt.
• Please advise on the options available to me.

Another thing she could do, which is admittedly an extreme option and does not apply if her ex is in any way abusive, is to simply move back into the house and piss him off so much that he agrees to sell it within a fortnight. Say, "The government are forcing me to repay three years of UC because they say I own this house, and that means I have no choice but to move back into it."

If, on the other hand, her ex is abusive, she should add the following point to her letter:

• I cannot move back into the house and it is difficult for me to even get near it for the purposes of valuations and estate agent viewings, because I was a victim of domestic abuse by my former partner who still lives in the house.

I understand that allowing people who own properties they do not live in to claim universal credit is a loophole that unscrupulous people would exploit. But at the same time, I think that taking into account someone's joint ownership of a house they cannot live in and cannot get their money out of is also a loophole in the system that leaves people like the OP (mostly women, I reckon) extremely vulnerable.

It will indeed but what is the alternative?

Your overpayment letter should lay out your right to appeal, as well as how much has been overpaid and the methods of recovery; which usually offers a repayment plan.
Your first step is to appeal with the evidence you declared your name been on the mortgage all throughout, so the error is theirs, if they've continued payments. Is this in your journal? Follow the appeal process first, then make arrangements to pay, if unsuccessful.

https://www.google.com/search?q=universal+credit+official.error&oq=universal+credit+official.error&gslcrp=EgZjaHJvbWUyBggAEEUYOTIICAEQABgWGB4yDQgCEAAYhgMYgAQYigUyDQgDEAAYhgMYgAQYigUyDQgEEAAYhgMYgAQYigUyDQgFEAAYhgMYgAQYigUyCggGEAAYogQYiQUyCggHEAAYgAQYogQyBwgIECEYjwIyBwgJECEYjwLSAQkxMDE1NmowajeoAhSwAgHxBX3Qg7THIbOF&client=ms-android-samsung-ss&sourceid=chrome-mobile&ie=UTF-8

https://www.gov.uk/government/publications/benefit-overpayment-recovery-staff-guide/benefit-overpayment-recovery-guide

https://www.gov.uk/benefit-overpayments/how-to-make-a-repayment

Ask for a loan or maybe your parents can help and you can pay them back. A court needs to instruct your ex to sell up. I would start today. Get the house valued and then once it’s sold you can negotiate with UC re the true amount owed. You should be working full time. Your child has free nursery hours.

Is 16k half of the equity or just what your ex says you're entitled to? Make sure it actually is half not just what he thinks you paid in. Assuming no money was ringfenced from deposits.

An Occupation Order is very difficult to obtain, I've self repped in court twice as a victim of evidenced domestic abuse; I did obtain a Non Mol and Occ Order which removed my Ex from the property but it wasn't easy and there is a threshold. Unless the OP has recent and consistent evidence of domestic abuse, this will fail.

She actually doesn't need any Order to move back in, she can do this today if she chooses but likely the Ex may have changed the locks

You’ll need to look into taking him to court to get a court ordered sale. Once you have that, he can drag his heels but risks contempt of court for non compliance. If he doesn’t leave once the property is sold, you’ll have to return to court to get bailiffs to force eviction. None of this will be fast though.

You can ask for an extension, which will likely be granted if you can demonstrate that you are trying to get the house sold. The OP's problem is that she has done nothing about this for 3 years.

This will be seen as deliberately concealing money and also spending excessively to enable you to claim UC and if discovered will get your claim closed .

That's why, assuming no abuse, moving back into the house and disrupting his life might be the quickest way to get a result.

OP, who advised you to move out of the property? Normally the main care giver stays resident with the kids.

It sounds like she didn't realise she could or that she needed to.

She's just accepted everything she's been told by people who don't have her best interests at heart, and now she's stuck and needs a way out.

Oh and just to nit pick it's not your money @MapleHazelLatte,it's the tax payers .

Very helpful.

Regarding the fact that the OP told UC about her property - that point makes no difference to whether she has been overpaid UC.

UC overpayments are always potentially recoverable (they can be waived but it's not common)- it doesn't matter if a mistake in assessing entitlement was made by UC (rather than by for eg the OP withholding information about her circumstances).

Would they perhaps agree to putting a charge over the property? Given the vast amount you owe them? LAs often do this in respect of care home fees, so that when the property is eventually sold, they get their money.

He might be inclined to sell the property then….

If she can't pay a lawyer, she can self rep but will need guidance to do this.

It's stressful and time consuming and you need to have some very basic understanding of law and court processes, ie which forms...she would probably be entitled to Help with Fees but this just covers court application costs, not legal help of advice.