Can You Get Legal Aid If You Own a House?

Can You Get Legal Aid If You Own a House?

Legal aid exists to help people who cannot afford legal representation access justice. It is often a lifeline in serious legal matters, particularly those involving family law, housing, domestic abuse, immigration or criminal defence. However, eligibility for legal aid is based on strict financial criteria, which include an assessment of your income, savings and the value of your assets. This leads many to wonder whether homeownership automatically disqualifies you from receiving legal aid.

The answer is not straightforward. Owning a house does not automatically prevent you from getting legal aid, but the value of your property will be taken into account during the means assessment. Depending on how much equity you have in your home, you may still qualify, you may be required to contribute towards your legal costs, or you may be refused altogether. Understanding how the system works is essential if you are facing a legal issue and need to explore your options.

This article explains how legal aid is assessed in the UK, what impact owning a property has on your eligibility and what alternatives might be available if you are turned down.

How Legal Aid Eligibility Is Assessed

Legal aid is administered by the Legal Aid Agency in England and Wales. When you apply, they carry out a means test to assess whether you qualify. This involves reviewing your gross income, disposable income and disposable capital. The thresholds vary depending on the type of case and whether it is deemed civil or criminal, but all applicants are assessed against the same basic principles.

The capital test is where homeownership becomes relevant. Capital includes savings, investments, valuable possessions and the equity in your property. If your total capital exceeds the allowable limit, you may not be eligible for legal aid even if you have a low income.

For civil legal aid, the upper capital limit is currently set at eight thousand pounds. If your disposable capital is below this figure, you may qualify without needing to pay anything. If your capital is between eight thousand and one hundred thousand pounds, you may still receive help, but you might be asked to make a contribution. Above one hundred thousand pounds, you are unlikely to be eligible for legal aid unless there are exceptional circumstances.

How Equity in Your Property Is Calculated

Equity is the difference between the current market value of your home and any outstanding mortgage or secured loans against it. For legal aid purposes, a portion of the equity may be disregarded, especially if the property is your primary residence. Typically, the Legal Aid Agency disregards the first one hundred thousand pounds of equity in the home you live in, although this figure can vary depending on the nature of the case and whether there are dependants living in the property.

The remainder of your equity is then added to your total capital for the purpose of the means test. If the value exceeds the capital threshold, your application may be declined or you may be asked to pay a contribution from your assets.

If you own a second property, such as a buy to let or holiday home, the full equity in that property is usually counted without any disregard. This can have a significant impact on your eligibility.

What If You Have Low Income but Own a Home?

It is entirely possible to be asset rich but income poor. This is particularly common among older homeowners or those who have inherited property but have little cash available. Unfortunately, the legal aid system does not always accommodate this situation well. If your equity exceeds the capital limit, you may be considered able to fund your own legal costs even if your income is modest.

In some cases, applicants are offered legal aid on a deferred basis. This means you receive assistance during the case, but the Legal Aid Agency places a statutory charge on your property. This is known as the legal aid charge. It works like a secured debt and must be repaid when the property is sold or transferred. Interest accrues from the date the case concludes until repayment is made.

Deferred legal aid can be helpful in urgent or serious cases, particularly those involving domestic abuse or child protection, where legal representation is essential but the applicant cannot raise funds immediately.

When Might You Still Qualify?

You are more likely to qualify for legal aid if the case is serious and falls within the scope of legal aid funding, such as protection from abuse, child custody, homelessness or mental health proceedings. The Legal Aid Agency applies additional discretion in some circumstances, especially where a refusal would deny someone access to justice.

If you are applying for legal aid in a case involving domestic abuse or forced marriage, for example, the equity in your home may be assessed more leniently, particularly if you are at risk of harm or do not have control over the property.

It is also worth noting that the equity disregard for your primary home is not always capped at one hundred thousand pounds. Depending on the case, further allowances may be made for partners, children or people with disabilities who live in the home.

Providing Evidence and Being Honest

When you apply for legal aid, you must provide full details of your income, savings and property ownership. This includes recent mortgage statements, valuation reports and evidence of any other loans secured against the home. If you attempt to hide assets or misrepresent your situation, your application may be rejected and further action may be taken.

Solicitors who work on legal aid cases will guide you through the evidence required and help you present your case fairly. If you are unsure whether you qualify, it is still worth speaking to a legal aid solicitor, as they can carry out a means assessment and advise you based on your individual circumstances.

Alternatives If You Are Not Eligible

If you are turned down for legal aid because of property ownership, there may still be other options available. Some solicitors offer fixed fee arrangements, payment plans or no win no fee agreements depending on the nature of the case. Legal expenses insurance, which is sometimes included in home or car insurance policies, may cover certain types of legal work.

You may also be able to obtain pro bono support through legal charities, advice centres or university law clinics. While these services are limited and not available for every case, they can be invaluable if you are facing legal problems and cannot afford private representation.

For more complex or urgent matters, it may be worth considering secured lending or equity release, though these should never be entered into lightly. Independent financial advice should always be sought before using your home as a means of raising funds for legal costs.

Final Thoughts

Owning a house does not automatically prevent you from getting legal aid, but it can affect your eligibility depending on the value of your equity and the nature of your legal issue. The legal aid means test is detailed and often strict, but it does allow for certain disregards and special circumstances. If you need legal help and are unsure whether you qualify, the best step is to speak to a solicitor who handles legal aid work. They can assess your position accurately and help you explore the best course of action.