Does house ownership affect JA

[Sam]

My friend asked me to post this on her behalf. She is applying for JA but has a mortgage on a house (which is negative equity). Will this 'asset' affect the likelihood of her claim being successful?

 

[Darthvadar]

No Sam, the house your friend lives in as her residence is not included as means.

Of course, if she's gaining an income from her home, for example letting out a room, that income is included.

This from the Citizen's Information Centre may help. http://www.citizensinformation.ie/e...ans_test_for_jobseekers_allowance.html#l4570f

Darth.

 

[Sam]

Thanks for the link.

She has the house letted out and is renting a room elsewhere.

Any outstanding mortgage registered against the property is deducted from the market value to find the capital value.

Since she is in negative equity can I take it from the above sentence that the capital value is effectively nil and thus this won't be counted against her?

 

[gipimann]

Yes, that is the case - the rent she receives for the house is not assessed as income, it's the property which is considered the asset (which in this case has a nil/negative value).