1. Dave W

    Dave W Registered User

    Jul 3, 2005
    268
    Bucks
    My mother is now in a residential home, after a long period in hospital (as readers of another thread will be aware). As (if it'll co-operate with the idea), her cat will be rehoused tomorrow, her home will now be empty. At present, being self-financing, my mother's existing accounts can pay the home fees for about three years without selling the property. (I have no experience in buying or selling property, but do have an EPA authorising me to do so if necessary.)

    While I'm inclined (path of least resistance) to leave the house empty for the time-being, renting it out is an option, and a friend of my mother's has expressed an interest. (Rental income would probably mean that her capital would be static rather than decreasing.) Do others have experience or advice they could share on this - I don't want to go into something that creates more problems that it solves - I feel like I've been through more than enough already :)
     
  2. Brucie

    Brucie Registered User

    Jan 31, 2004
    12,413
    near London
    From my brief investigations in this area, after maintenance costs had been paid, the rest of the rent would need to go into your Mum's bank account, along with any other funds she has.

    Guess you probably realised that already.
     
  3. Dave W

    Dave W Registered User

    Jul 3, 2005
    268
    Bucks
    Decisions, decisions

    Hi Bruce, and thanks for the message. Yes, I was aware that any income it generates would be hers rather than mine, but thanks for underlining my understanding. I'm not looking to benefit financially from doing it (although it would be a nicer world if I were as financially covered as she would otherwise be), so that's not really a concern - any income would stop her capital depleting.

    I've just had lunch with an old friend (whose own mother developed VaD in her 50s after a couple of strokes), and talked about options. She pointed out that selling the house would give me a sense of closure, in that the 'issue' is then resolved. My mum isn't ever going to well enough to return home, so why keep it on? And I can see a lot of sense in the argument. Given her physical health (pretty good), chances are she will live for some time, and I might as well tackle the issue now rather than live with it.

    Does anyone know where I stand legally? I have EPA (not registered as yet) which doesn't rule out handling property, but have never bought or sold a house: I'm clueless as to where to begin, even if it were my own property. What special factors do I need to take into account given that I'll be acting on her behalf?
     
  4. Kathleen

    Kathleen Registered User

    Mar 12, 2005
    639
    West Sussex
    Hello Dave

    We rent out my Mum's home to one of her grandchildren at the moment, but it is not enough to keep the house safe for much longer, her savings are being eaten up by the £400 shortfall per month, but we will soon have to sell unfortunately.

    We would have liked to hang on to it to honour her and my late dad's wish that the home they worked so hard to buy would be sold on their deaths and the proceeds left to the family, but it is not to be. The inheritance is not the issue so much as the unfairness of it all, but as things stand all the proceeds will go to pay for her care.

    Still, if Dad had foreseen the situation we are in today, he would have put Mum's needs at the top of the list, as he did for their 54 years of marriage, or seen to it that they died together, something he always insisted would happen.

    I don't think selling the family home will bring closure so much as tear us up emotionally, it is a symbol of who they were and holds so many memories for all the family, except Mum of course, who luckily is oblivious to all the upset around Dad's death and her illness.

    Perhaps your Mum's bank has a financial adviser to guide you through the options for renting or selling your Mum's home.

    Kathleen
     
  5. Lynne

    Lynne Registered User

    Jun 3, 2005
    3,433
    Suffolk,England
    I think now would be a good time to get it registered.
    Does anyone else here know if one needs a letter from the doctor to support the procedure?
     
  6. noelphobic

    noelphobic Registered User

    Feb 24, 2006
    3,452
    Liverpool
    I would think one thing that might be worth taking into account is how much income would be generated by renting the house as opposed to the interest that would be generated by selling it and investing the proceeds. It's not the only factor by any means but it is one worth considering. Also, how reliable is the potential tenant? Will they look after the house and pay the rent on time? Also, what will happen to them if you do decide to sell the house one day? I assume you have no intention or wish to ever live in it yourself?

    I seem to have given you more questions here rather than answering you but hope this is of some help anyway!
     
  7. Amy

    Amy Registered User

    Jan 4, 2006
    3,453
    We have in the past let a house both privately, and through an agent. I would always do the latter; that way you do not have to become involved with making sure rent is on time, the letting agency will ensure that you have the right type of insurance cover and that the right annual checks are carried ou. Letting privately we found a right pain, especially when tenants did not pay on time. Friends were the worst, because they would ask for "just another week."
    I can also see the appeal of selling; a new phase of your mum's life has started, she has moved home, and the old one needs selling, for that's what you do when you move house.
    Take time to consider your options. Many estate agents also let properties so that might be one place to start; talk to someone and see if there is much demand for properties to let in your mum's area and what income you could anticipate.
    Take care.
    Amy
     
  8. Michael E

    Michael E Registered User

    Apr 14, 2005
    619
    Male
    Ronda Spain
    All the replies to this sort of question are opinion so here is mine - Hang onto the property for as long as you can - it will always go up in value where as any form of savings that is fairly risk free will diminish in value.

    Rent the property out on Short-hold Tenancy Agreements. That way you can always regain possession - via the court if necessary.

    Do not rent to a 'friend' unless they have signed a STA and are paying you by bankers standing order. The moment they fall behind with payments or do not pay give them notice to quit. (good reason not to let to friends)

    Do not use an Estate agent - they charge outrageous amounts of money to do something you can do very easily yourself - if you PM me I will send you all the forms you need and tell you how to find tenants etc. The problem with agents is that whilst there is no problem they will be wonderful and charge you large amounts of money - the moment there is a real problem (non payment of rent) they will charge you to do the simple things then wash their hands of you.

    My income now comes entirely from rental property - quite modest flats in London. I have been doing this for about 15 years and have sailed around the world in a small boat and managed the properties myself all the time - so it is not a very demanding business. Your mums capital will increase in value (property market) and you will get a return on capital that is far higher than anything else (that's legal!)

    When you get to the point that the income and funds do not pay the bills then sell but remember once the capital runs out - that's it - although at that time the state will take over ....

    Do ask if I can help you I will with pleasure..
    Michael
     
  9. Brucie

    Brucie Registered User

    Jan 31, 2004
    12,413
    near London
    I didn't need one to register Jan's EPA.
     
  10. Lila13

    Lila13 Registered User

    Feb 24, 2006
    1,342
    My brother's original plan was to convert my mother's house into flats and let them out, but the solicitor who was doing the POA said it would take too much capital to get the property into lettable condition, and it would be better to sell, and possibly buy lettable property elsewhere.
     
  11. Brucie

    Brucie Registered User

    Jan 31, 2004
    12,413
    near London
    I have been looking into selling our house and moving somewhere more manageable. One option is letting the current house.

    Advice I have received is that the property needs to be in a much better level of maintenance, updating, etc to let it than it does to sell it.

    Bottom line is that it will cost me less to sell it.
     
  12. Dave W

    Dave W Registered User

    Jul 3, 2005
    268
    Bucks
    Very ture

    Yep, that's a conclusion I've been coming too as well. I don't have the capital to outlay, so the cheapest thing to do is to sell. I have to say that, for me, the 'that finishes the issue' angle is another important factor: letting does leave with on-going responsibilities and duties. I'd assume many carers feel like they already have enough of those without volunteering for another.
     
  13. Brucie

    Brucie Registered User

    Jan 31, 2004
    12,413
    near London
    Yep, closure is a major factor here!
     
  14. Lila13

    Lila13 Registered User

    Feb 24, 2006
    1,342
    Closure

    I shall be so relieved if the day ever comes when I can see my mother without going back to her present house.
     

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