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To Sell or Rent (dementia in the mix)
Miss_Merlot
Posts: 100 Forumite
So, as you might have read on previous threads, the current plan is to rent my MIL's (who has dementia) house out for her for the time she's in assisted living (just moved her in last month), with any future shortfall in care home fees should she need one in the future (hopefully!) being met via deferred payment from SS.
Her pension is £2k per month after tax and rental income about £1,000 after agency fees. Only just enough to cover "standard" care fees for the moment at least, but not enough for more advanced levels of care if ever needed.
On selling the house now or in future, our solicitor has confirmed my husband (as a 50% trustee following his father's death in 2006) would be entitled to half of the proceeds.
I personally am in favour of selling now (work has been completed and are going to see it today) as:
1. OH is entitled to his half whatever. The other half should go towards MIL while she's alive for her future care. Ethical.
2. Whatever MIL doesn't end up having to spend on care, OH will still get when she dies. Same applies whether she pays it upfront with her half of the proceeds of the house sale, or the house is sold later down the line with a deferred payment charge on it.
3. Saves a battle with SS to get them to agree to deferred payment later down the line. Or they might choose to attempt a forced house sale at that time anyway = more hassle (especially if the house is tenanted out at the time).
4. If OH dies before his mum, solicitor has confirmed the trust moves on to someone else (a niece who doesn't even ring on MIL's birthday). So I would be left as the primary carer and get nothing. I would still act as primary carer to the best of my ability, but would still undeniably be a bit of a kick in the teeth for me if some distant relative got half a house in death for doing precisely b***** all for MIL during her life, while I've been on hand caring for years, and making sacrifies most twenty-somethings never have to even think about...
5. £150k would be handy right to have right now - OH could pay off his debts, buy a new car (needed), pay me back, go on a much needed holiday and still put substantial "rainy day" money aside. Even pay off some of our own mortgage in the future...
6. Renting is a hassle. So is selling - but at least you tend to get there in the end, then you're done with it! Personally I would prefer to get rid altogether and just move on... Also we know a willing buyer.
7. The house contains too much emotional baggage - even to really want to act as landlady from a distance for. Closure.
OH has declared himself willing to "talk about it tonight".
What else can I say to persuade him to sell now...?
Ultimately it's his decision, but can at least present him with some facts in the process....
Her pension is £2k per month after tax and rental income about £1,000 after agency fees. Only just enough to cover "standard" care fees for the moment at least, but not enough for more advanced levels of care if ever needed.
On selling the house now or in future, our solicitor has confirmed my husband (as a 50% trustee following his father's death in 2006) would be entitled to half of the proceeds.
I personally am in favour of selling now (work has been completed and are going to see it today) as:
1. OH is entitled to his half whatever. The other half should go towards MIL while she's alive for her future care. Ethical.
2. Whatever MIL doesn't end up having to spend on care, OH will still get when she dies. Same applies whether she pays it upfront with her half of the proceeds of the house sale, or the house is sold later down the line with a deferred payment charge on it.
3. Saves a battle with SS to get them to agree to deferred payment later down the line. Or they might choose to attempt a forced house sale at that time anyway = more hassle (especially if the house is tenanted out at the time).
4. If OH dies before his mum, solicitor has confirmed the trust moves on to someone else (a niece who doesn't even ring on MIL's birthday). So I would be left as the primary carer and get nothing. I would still act as primary carer to the best of my ability, but would still undeniably be a bit of a kick in the teeth for me if some distant relative got half a house in death for doing precisely b***** all for MIL during her life, while I've been on hand caring for years, and making sacrifies most twenty-somethings never have to even think about...
5. £150k would be handy right to have right now - OH could pay off his debts, buy a new car (needed), pay me back, go on a much needed holiday and still put substantial "rainy day" money aside. Even pay off some of our own mortgage in the future...
6. Renting is a hassle. So is selling - but at least you tend to get there in the end, then you're done with it! Personally I would prefer to get rid altogether and just move on... Also we know a willing buyer.
7. The house contains too much emotional baggage - even to really want to act as landlady from a distance for. Closure.
OH has declared himself willing to "talk about it tonight".
What else can I say to persuade him to sell now...?
Ultimately it's his decision, but can at least present him with some facts in the process....
0
Comments
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You might wnat to stress some of the potential pitfalls of renting (nightmare tenants, nightmare letting agents, nightmare HMRC) as well as the multitude of regulations:
* insurance
* gas
* electricity
* legionnaires disease
* mortgage approval
* maintenance
* etc etc
Emotional attachment to property /contents is bad news too as tenants will not respect in the sae way....
* Deposits: payment, protection and return
* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?
* Rent increases: when & how can rent be increased?
* Repossession: what if a LL's mortgage lender repossesses the property?
* New landlords: advice, information & links
* Letting agents: how should a landlord select or sack?0 -
I was in a similar position a couple of years ago and decided I had no desire to be a landlord, so sold my mother's house. One of my better decisions.
And there was no absentee niece hovering around to potentially inherit. That would finalise the decision for me.
Take care and good luck!0 -
Would the deferred payment be subject to interest ? eg Amount owed for care £10000, but amount taken £10000 plus interest, possibly at a silly rate (ie above any rate investment would earn)0
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