rent or sell? refurb or not? help please

dorset_nurse

Care home bills privately are likely to start from about 550 per week and go upwards...
In my opinion there is no point in refurbing and letting out the house as the income will not cover the fees and your uncle will still need to sell his house to pay for his care at some point. You would probably make more money on the interest of the 200k than letting it out in the small window he has before his savings at the moment run out.

ognum

dorset_nurse wrote: »

Care home bills privately are likely to start from about 550 per week and go upwards...
In my opinion there is no point in refurbing and letting out the house as the income will not cover the fees and your uncle will still need to sell his house to pay for his care at some point. You would probably make more money on the interest of the 200k than letting it out in the small window he has before his savings at the moment run out.

I agree, think I was just trying to get OP to work that out! Please ensure your uncle is claiming all the allowances he is allowed in order to stretch his finances.

all_work_no_play_no_money

uncle has £100,000k+ in bank and bungalow and army pension £200 a week. he still needs another £12k a year on top of his interest and pension. i think can get £8-9k a year rent for only a one off £15k outlay. we are in charge of his money (court order etc) the money spent on refurb will up house value by £30k so EA has said. will get EA to manage the property too

hazyjo

By the time you've put in a new kitchen, bathroom, carpets, decoration, electrics, checked roof, etc, uncovered whatever problems might be hidden, etc (and presumably paid for labour!), you could be spending £30k+ easily. I don't see the point. Was the £20k you estimated on plucked out of thin air? Until you have some sort of survey done on it, you'll not know what might need doing.

And there's definitely no guarantee you'll get that £30k back. I bought a house in 2006, spent £15k or so, and sold in 2011 for the exact price I paid in 2006. Nothing's guaranteed in this market. If it takes you several months to do, the market could well have dropped further, possibly eliminating half, or all of the £30k you've spent.

Jx

brit1234

If you can get rent it might be better. If he didn't own it 100% I would say sell but as he has no mortgage I would rent it with minimal upgrade to make it look smart. All rent to go to his care home costs.

all_work_no_play_no_money

friend of mine runs his own building company and has checked it all over and is only cosmetic things need doing. house is very sound!!
£3k - kitchen + fitting (quoted), £1.5k - new bathroom toilet suite + tiles + new ceiling & plaster + new electric shower, all labour (qouted), needs new fuse box and socket fronts, wiring fine (awaiting quotes) £1.25k new carpet throughout + fitting (quoted) wall paper stripped and walls painted (awaiting quotes or may do ourselves depending on time) garden needs a tidy up but nothing major
this will add £30k+ to house value and rent will pay for work in 2 years
i think this is best way to maximise his assets