Selling property as LPA

DollyPickle

I hold Financial and Property Lasting Power of Attorney for my Uncle (he has no children, and one estranged sister miles away in her 80's so I was the nearest in miles and relationship so took on the role, however off-topic!)

I have had to put the property on the market due to him having to go into care.

My common sense tells me that I cannot purchase the property myself as I am selling in on his behalf as LPA?

Is there an issue with a non-relative who lives at the same address as me purchasing? I think I may need to ask a solicitor, but you all have a wealth on knowledge on here!

Thanks in advance

AdrianC

DollyPickle wrote: »

My common sense tells me that I cannot purchase the property myself as I am selling in on his behalf as LPA?

So long as the sale is in his best interest - and there's a strong argument that for a quick, painless sale, a discount off a fair market value wouldn't be inappropriate - there's no problem whatsoever.

Depending on who will ultimately inherit any residue of his estate once his care costs are paid for, you might need to be prepared to justify it fully. If he runs out of money before he runs out of his need for care, then you might also need to justify it to the local authority if they come sniffing for deprivation of assets. But, as ever, "don't take the mickey"...

Mardle

Assuming that the LPA has been registered due to your Uncle being found to lack capacity to make the decisions himself your role is to make the decisions that are in his best interests. You have to be seen to have got the best possible price for his house so as long as you get a few valuations and pay a fair market price I think you should be able to buy it.

What you can't do is buy it for a low price. Is he paying for his care out of savings at the moment or are the LA paying?

DollyPickle

Yes sadly due to lack of capacity, this was way before care was even thought of (would've been harder to register now his has declined, so good job in hindsight) it's been emotionally very hard as well as this side of it. Sad to see the demise in a loved one

Will be self funding (through the council) so I assume it is the council that was a best price as possible so not seen to be depriving of assets, rather than the law? As I thought you could sell for any price you wish - totally within reason, I wouldn't expect to knock £100k off of the 'value'! More than enough will be generate to fund care.

He is paying an accrual - so the council are paying the top up after his contribution and placing a charge on the property

I'd like to do buy-to-rent. I assume any next of kin that would inherit (I don't believe there is a will, so I am not next in line to any 'left overs') would not need to know who bought the property (or even how much), just that it had been sold to cover care and XXX is left when sadly the time comes? Not that there would be anything to hide, just thinking things through. They have had no interest in him for years

Thank you for advice

AdrianC

DollyPickle wrote: »

so I assume it is the council that was a best price as possible so not seen to be depriving of assets, rather than the law?

Yes.

More than enough will be generate to fund care.

Even for, say, the next fifteen years, should he live that long?

If there's no or little risk of the funds being insufficient to cover his care costs, then the only other likely objections would come from any beneficiaries of his will.

DollyPickle

Actually you've just raised a question for a me. I will need to ask the Council, whether they will continue to support his place once the property is sold, or whether he will switch to completely self funded.
At present he is self funding, but through them (I think I put up above) so contributes weekly from pension, they they rest will accrue. I wonder if it will continue this way once has capital in bank account. Irrelevant in some ways as he will be covering all costs anyway.

He is 86, but I should have to consider living until a grand old age! Once the money has gone it's gone, I hate to be in the position where they say they won't pay for him to stay once assets have been diminished.
I'm all for paying something towards your care cost, can't expect the government to cover everyones care needs costs, but every single hard earned penny just seems wrong where as others who 'can't' don't. Rant over

Sorry for all the thoughts and questions, it's been a steep learning curve the last couple of years

Pixie5740

It's not just the council who will want the best price for the property but the law as well since you have to act in his best interests. As long as you get the best price for the property it won't matter whether you buy it or someone else does.

G_M

AdrianC wrote: »

So long as the sale is in his best interest - and there's a strong argument that for a quick, painless sale, a discount off a fair market value wouldn't be inappropriate - there's no problem whatsoever.

...

I disagree.
The arguement for a discount in return for a quick, painless sale may be valid, but is weak, not strong.

The primary responsibility is to the Uncle, and any benefit gained by the Attorney, or their immediate relatives, partner etc, would need to be clearly justified as also in the Uncle's best interests..

DollyPickle

Thank you all for comments, exactly why I asked opinions, I will seek proper legal advice. I want anything I do to be above board and legal so as not to abuse the trust that I hold being LPA and ensuring Uncle is properly looked after in everything.

Cheeky_Monkey

DollyPickle wrote: »

Thank you all for comments, exactly why I asked opinions, I will seek proper legal advice. I want anything I do to be above board and legal so as not to abuse the trust that I hold being LPA and ensuring Uncle is properly looked after in everything.

I would have thought the best way to do that would be for you to pay the market value but with a discount for the amount that would have been payable to an EA to sell it for you.

Mardle

As I understand it your Uncle will be totally self funding until his savings drop to around £23k then the LA will pay a proportion of the care home costs until his savings drop to around £14k when they will pay the full amount.

When he is totally self funded he should be able to claim Attendance Allowance which will make his money last a bit longer.