JSA-Property and Means Test

C

chughesie

Guest
My JSB is due to run out soon and I will be means tested for JSA. I am wondering as to how property is assessed.

I live at home (i'm 27) but have a property that is jointly owned with my brother that we let out. Annual rental income is around €8,500 with mortgage repayments around €7,000 pa.

The current market value of the house and the mortgage arrears are approximately the same (circa €250,000).


Any information on how this will be assessed would be gratefully received.

Thanks
 
Read the keypost guide, especially in relation to means-testing. 2nd properties afre assessed at market value less mortgage.
 
What happens in the following case:

Owner raises money to purchase the second property using equity built up in the primary residence. In calculating means for JSA, is the fact that that the mortgage is raised on the primary residence dismissed - meaning that the second property is assessed as pure capital (minus nil because there is no mortgage registered against it) AND the income from the same asset (rented out for say 8k pa) also used in the means calculation?
 
If the mortgage is on the primary (non-rented) residence, then it is not offset against the capital value of the rented property, so the full value of that property will be assessed as means.

The rental income is not assessed as means, only the capital value of the property itself.
 
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