Mother selling home and trying to get a ground level dwelling due to health needs....am worried

67chevyimpala

Hi,
No idea if this is the right section so please forgive me if not..I am concerned about the following....
My 75 year old mother is selling her home as its now no longer safe for her with her (many) health conditions some of which badly affect her mobility. (She does acfually qualify for supported/sheltered council housing but as you probably all know that's as rare as hens teeth!!)
She bought the house after the very sudden death of my dad some years ago. She got a DinS benefit and so was able to buy their rented house. Sadly her health started to deteriorate about 2 years after this.
She only has her state pension and 2 small work pensions of my dads to live on.  She has approx £11k pa coming in and her savings have almost  totally depleted.
Whilst I know she needs more suitable housing and she is not safe where she is atm I'm worried that she is potentially making a problem for her later years.  She has had an offer on the house which she has accepted  and she will have to go into rented accommodation until we can find her somewhere more suitable.
However,  by my reckoning She has basically spent £130k in 7 years. (Part of this was the house purchase and she has been on quite a few holidays too.)
My concern is that she is going to get a sizeable amount of money (£140k) and I am worried about her having nothing left in 10 years time.
She will need another bank account obviously to spread the money,  she isn't interested in investing, and tbh can be quite secretive about money even though she made me her POA .eg: she gave my brother £10k for a house deposit and didn't tell me.....it only came to light when she admitted how little savings she had left.
Obviously she can spend he money how she wishes and I've ever expected an inheritance:) but I can't help her if she isn't honest with me?
Does anyone have any advice on how I can help her make the most of her money? Or at least protect some of it? Obviously interest rates are pretty rubbish atm.
She is absolutely adamant she will not buy again. She refused all suggestions  of aids to help 
Allow her to stay where she is. She will not use a stick or scooter but she does have a blue badge now. 
Best case scenario is she is in rented accommodation for a few months and then gets a bungalow.....
I'm finding it very hard to know how to advise her and am finding her attitude quite difficult.
Costs up to now that I know of;
Solicitors and conveyancing : £1k
Removal costs : £500
No EA costs as she is selling to a LA
Will need a months rental as deposit: £700?
Does that sound right? If can't think of anything else but my brain has stopped working 🙃 
Thank you if you of you got this far!!!

luvchocolate

I suggest you look at housing association in your area for over 55s
I had to wait 2 years for a flat but didn't have "a need " so wasn't priority. Your Mum should be classed as priority. 
 

Socajam

I think when the property is sold, you should pay more attention to your mom's money (you cannot stop her giving your brother money), but I would not be surprised if he comes begging again.
Let your mom know that if she keeps giving your brother the money that is needed for her upkeep, you will not be using your own money to help her later on. 
Make sure your brother is aware of this.

elsien

It's not about "allowing" her to stay where she is - if she has her marbles then it is fully her decision however if she agreed for the house to go up for sale then she must recognise its unsuitability.I can understand why she may not want the hassle of buying again, with all the maintenance and everything that comes with it, particularly with the current house being unsuitable after a comparatively short period of time.
So what are her thoughts about where and what she wants to rent? Has she applied for sheltered housing, because where I am it can come up comparatively quickly - is she already on the list? Has she started looking at what rental options there are out there. Private landlords may well require financial references - she's expected to have the money from the house sale but she'll need to have something set up to move to before that goes through. Have you/she checked with the lettings agents what they may require - a friend who was waiting on the proceeds of a house sale as her main income was told she would need to give 6 months rent in advance. 

As an aside, if she has some care needs, can she apply for attendance allowance to top up her income. It's not means tested and she doesn't need to be formally receiving care to qualify, but to have the underlying needs.

gwynlas

Your mother is probably best off moving into a retirement community either renting or buying but this probably means being in a flat and having potentially high service charges to pay. However she would have similar people around her and someone on call if necessary. It is very unlikely that she will find somewhere immediately suitable on the open market.
There are housing associations who offer supported accommodation.
Perhaps she believes it is better to enjoy her money whilst she can and if it runs out  she will still have her pension.

xylophone

Have you actually checked to see what might be available? 
https://www.sanctuary-housing.co.uk/housing-for-older-people
https://www.guinnesspartnership.com/care-services/housing-for-older-people/

tacpot12

Your estimate of her costs to rent look about right, but don't forget to factor in water rates, energy and phone costs unless you are happy that her pension income will cover all these and leave enough for her to live on. 

You don't need her to be honest with you to help, but it's like a computer programme; "garbage in, garbage out" - your advice will be less useful if it is based on inaccurate information. 

If she wants to rent long term you need to talk to her about the effect of inflation. If she receives c£140K from the sale of the house, she really needs to invest the majority of this into assets that are going to at least keep pace with inflation. If she keeps the money as cash, and just uses it to pay her rent, it will all be gone in 14 years. If she invests it properly, it should last at least 20 years or more. This could mean that she needs professional advice. If she buys somewhere she will also have to pay the maintenance and insurance costs on the property. These costs will rise with inflation, but her pensions give her a degree of protection against inflation. 

theoretica

It might be worth seeing what sort of an annuity this money, or much of it would buy.  This would stop her running through it fast.  It might not suit her, but it might give you both peace of mind.

67chevyimpala

Hi,
Thank you all.
Sorry to clarify yes I got her added to the LA housing register and she is indeed prioritised as high due to her health needs.
However supported housing where we live very rarely comes up...maybe 1/2 per year?
She needs to stay local as I am her main "carer" and my sibling lives here too. 
Should have also mentioned she's applied for attendance allowance although I don't think she'll get it.
No private retirement villages etc here 

Silvertabby

You'll need to stress to her that once the money from the house sale has gone (either on holidays or into your brother's pocket) then all she will have to live on will be her £11K per annum pension.  With that level of income she is unlikely to qualify for any means tested benefits, including havingher rent paid for her. 

getmore4less

75 starting to get mobility issues get into the assisted housing and blow the lot on a good time while you can.
once housebound/local  £11k pensions  will go a long way.

Its not enough to cover better care home for long anyway.