Can we rent mums house to Grandson while mum is in a home

[lobby]

My Mother 80, is now in a care home. She has a house valued at about 200k. Mum also has financial assets of approximately £100k. The care home costs £965.00 a week or £50'180 a year.
We expect mums house to be sold eventually as she has Alzheimer's and she is physically fit. We have both Financial and Health POA in place but we are worried that her home has to be sold and can't be rented out legally.

As it happens my son 25, and his girlfriend (both very responsible) need to rent while they save for a deposit for their own home.

Can anybody please help us out with some information to clarify whether we really can or can't do this please?

 

[marionq]

Your sums don't seem right. £965 per week is almost £4000 a month which is well above your calculation of £11,580 a year.

Her liquid assets won't last long at that rate and so within a couple of years you would need to sell the house to release capital. Of course you could sell to your son at market price when that day comes.

Renting it in the meantime shouldn't be a problem.

 

[lobby]

Your sums don't seem right. £965 per week is almost £4000 a month which is well above your calculation of £11,580 a year.

Her liquid assets won't last long at that rate and so within a couple of years you would need to sell the house to release capital. Of course you could sell to your son at market price when that day comes.

Renting it in the meantime shouldn't be a problem.

Yes it's early, eyes still closed thank you

We are just concerned that the tax man is going to be troublesome if we rent out to family without actually knowing how long mum will live. My sisters who live in the USA say it's a no no. I have full POA but I'm really worried

 

[Bunpoots]

Its fine to rent out the house but there are a few things you need to think about.

Any rent collected will be liable to tax if your mum is a taxpayer.

Does you son plan to buy the house from your mum eventually? If he improves it it would have to be sold at market value so he could end up paying twice for his own improvements - unless your mum funds them of course.

I assume you won’t be involving an agent as it’s family but as POA holder you need to make sure that your mum is receiving market rate for the property so have a look on Rightmove or one of those sites to see what the local rent it for that sort of property in the area. If the house is dated it would be lower.

Most high street agents will do a free evaluation and tell you what the law is re renting. Officially you need an EPC and a landlords gas safety certificate if there is gas to the property.

Hope this helps. I’ve just put my dad’s bungalow on the rental market to help with carehome fees and don’t expect any problems other than the normal landlord niggles (I’m a landlord).

 

[lobby]

Its fine to rent out the house but there are a few things you need to think about.

Any rent collected will be liable to tax if your mum is a taxpayer.

Does you son plan to buy the house from your mum eventually? If he improves it it would have to be sold at market value so he could end up paying twice for his own improvements - unless your mum funds them of course.

I assume you won’t be involving an agent as it’s family but as POA holder you need to make sure that your mum is receiving market rate for the property so have a look on Rightmove or one of those sites to see what the local rent it for that sort of property in the area. If the house is dated it would be lower.

Most high street agents will do a free evaluation and tell you what the law is re renting. Officially you need an EPC and a landlords gas safety certificate if there is gas to the property.

Hope this helps. I’ve just put my dad’s bungalow on the rental market to help with carehome fees and don’t expect any problems other than the normal landlord niggles (I’m a landlord).

Thank you