Hi, I need some advice regarding overseas property, my sister is separated from her husband who still lives in their house in Australia with their eldest daughter, she is back in the UK with her youngest daughter, working part time (her daughter is unwell and has special needs) she is renting a flat for them both. The DWP have sanctioned her and after initially granting support using the reason that the house in Australia is above the £16,000 savings threshold. Is this correct?
If your sister has ownership in the house even in part then it is treated as capital for the purposes of UC, only the property that you are living in will be disregarded.
Your sister should look at the equity of the house? Is there a mortgage still outstanding? what percentage of ownership does she have? Is the equity realisable?
She really needs to get face to face advice from a trained Welfare Adviser. See