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How to maximise income from house

My mother has dementia and has just moved into a care home. The monthly fees are £4023. Her house is worth approx £400,000. What would people recommend to do with the house to maximise income from it? We can rent it out at about £1300 a month (minus management fees (10% + VAT) and tax) or sell it and invest the money. Mum
has enough other savings to cover her care home fees for 3 years and so we don’t need the capital from the house yet. Obviously the more income we can generate from the house, the better.

Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Consider selling it and using some of the capital to buy an Immediate Needs Annuity to cover part of the care home fees. The aim would be to ensure that the cost of the care home can be covered until death.
    Free the dunston one next time too.
  • IanSt
    IanSt Posts: 366 Forumite
    Definitely agree that you should look into the annuity. Depending on her age you could find that the peace of mind it brings means that it is a very good option for you.
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