Hi, my mum has been in a care home since January of this year. She is a self-funder but has a house. Can my brothers and I rent out her house to pay for some of her care fees?
thanks
thanks
Raising funds to supplement paren't care home fees
- Thread starter coolermare
- Start date
I was going to do this with my mum's house and no one raised any objection as I put it to them I would be turning a drain on her money into an asset, however, to do the landlord thing properly, insurance, gas safety certificates, vetting tenants and everything else it just became easer to sell it.
The problem is unless the house is something or somewhere special the rent won't cover the care costs in the home, eventually her funds will run out, what happens then if the house is leased out for 12 more months who will cover the costs?
K
The problem is unless the house is something or somewhere special the rent won't cover the care costs in the home, eventually her funds will run out, what happens then if the house is leased out for 12 more months who will cover the costs?
K
Do you have POA? If so, it would probably be a lot more profitable and less stressful just to sell the house outright as most rents won't cover the fees anyway but I do understand that if you don't have POA, renting might seem the only solution. I don't know the legal position - for example, how could you do a tenancy agreement if you don't own the property or have POA etc. and I would imagine that being a landlord does come with a lot of responsibilities, like special insurance etc.
If you do decide renting is the way for you, then I am sure no one would object if you kept strict records of all finances to show the rent paid her care fees etc, just in case she ceases to be self funding at any point.
If you do decide renting is the way for you, then I am sure no one would object if you kept strict records of all finances to show the rent paid her care fees etc, just in case she ceases to be self funding at any point.
Hi,
Yes there can be problems to overcome if you decide to rent.
But don't forget not only will you be receiving a monthly income the way the property market is you are also likely to achieve a capital increase if you don't sell.
If you sell the house you will still have to find an investment vehicle for the cash.
Rember that if your relative falls ill or becomes disabled you will be entitled as a statutory right to claim free care from the the NHS through the CHC scheme.
If awarded ALL care costs will be met by the NHS.
Mick
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