Selling PWD's property which is rented out - advice needed

Carmenjane

Registered User
Mar 17, 2022
473
0
I have Power of Attorney for my partner who has dementia and has been resident in a Care Home for the past two years. He is self-funding and his money will run out towards the end of this year.

He owns a property which is let out to a couple who are personally known to him and have been there since he bought it in 2002. They both have disabilities and have been on the list for a council house for years. I don’t know anything about the extent of their disabilities or their financial situation except that he drives a taxi and she cannot manage the stairs and sleeps in the only living room.

The property is managed by my partner’s wife (they have been separated for 40 years but never divorced and she and I have a polite relationship). She takes the rent which he pays tax on. She is the sole beneficiary of his will, but there is likely to be very little left, if anything. I am financially independent.

His wife has made the tenants aware that I need to sell the property and understandably they are very worried and don’t want to move. I am reluctant to evict them, mostly because I feel morally obliged not to, but I am also aware that the costs involved will be considerable if they take the advice of the LA that leaving before they are forced out is seen to be making themselves intentionally homeless.

They were confident that a friend of theirs would purchase the property with them as sitting tenants but he can’t get finance. They are now saying they have other prospective buyers but I think they are probably grasping at straws.

If that doesn’t work out I am thinking of putting it up for sale with them as sitting tenants. I have been googling and see that I can expect to get up to 60% less. He will also have to pay capital gains tax as he's never lived there which is likely to be at least £25,000. I am worried about the LA making an accusation of deprivation of assets if I sell for much less than the market price.
 

nitram

Registered User
Apr 6, 2011
30,791
0
Bury
They both have disabilities and have been on the list for a council house for years.
Explain the circumstances to he LA and see if they can be pushed up the list, maybe enlist the help of councillor.

EDIT
Second thoughts.
Bend the rules a bit and ask for a disregard because a disabled person is resident.
 
Last edited:

Carmenjane

Registered User
Mar 17, 2022
473
0
Thanks for the link. There's a lot to think about. This section is interesting:

11.15 A ‘loan’–style deferred payments agreement The Government wants local authorities to offer deferred payments more widely than before. The statutory guidance states that ‘A deferral can last until death, however, many people choose to use a deferred payment agreement as a ‘bridging loan’ to give them time and flexibility to sell their home when they choose to do so. This is entirely up to the individual to decide.’
 

Kevinl

Registered User
Aug 24, 2013
7,284
0
Salford
Two kind of disregard (in England), mandatory as in they have to disregard and a discretionary disregard where the LA might choose to ignore at their own discretion, local authorities seem to very, mine is/was pretty...understanding.
K