Retirement, Elder Care and Property Management

John_Drake_2

I am 69, and like millions of other people, I might need elder care in future.  This can cost about £800 a week, and I need to plan for that.  Many people end up losing their homes.  I am planning to continue to live in my own home, even if I need 24 hour care.  
Also I have seen sad results from selling property, and would prefer to generate an income from property, and only to sell in dire emergency.  

After my friend suffered a stroke I have seen enough of care homes to know I could not live like that.  I have not been able to do much for the past two years, I have been grieving so much.  She has left me her bungalow, although in a very poor state of repair. 

Currently, if I suffer a stroke and am paralysed, the government and NHS describe most of the resulting care as a social need and would demand I sell my home to pay for care.  Not living in my own home, I would become a licensee. 

I have a better example of care from a quadraplegic neighbour.  He has direct funding own budget.  He lives in his own home, and directly employs his carer who, with the right equipment, can give him a good quality of life, with independent travel, for example.    

I would appreciate any practical experience that anybody can pass on to me that can help me plan.  
I live in a bungalow, which I will identify as number 10,  that has land charges held by a family trust, but no mortgage payments.  
I have inherited a similar bungalow, number 12, half a mile away, in a very poor state of repair.  

My plan is to let out a property, to acquire an income to help clear debts I ran up helping my friend, and to build up savings to help pay for any care I may need.  If I get unlucky, and need 24 hour care, the bungalow I am letting out would be, in emergency only, sold.  

I plan to refurbish the bungalow I am living in to rental standard, which refurbishment will cost about £24,000.  A friend has offered private finance to enable the refurbishment.  
I believe the way the rental market works these days, a property must be to a high standard to rent out.  Next door to number 10 is let out for £950 a calendar month.  
** I would appreciate any comments on how good a bungalow would have to be, in the Cambridge area, to let out.  
The bungalow I have inherited, number 12, would cost far more to refurbish, and I am planning to live in it below standard.  Some of the income from the better bungalow would be used for crucial building works such as roofing.  Council grants to bring a property up to standard have now ended, and even for a Local Authority loan, I believe I would be disbarred by owning two properties.  
I have done work at the property I have inherited, but currently it has become very difficult to walk.  

** An alternative is to sell number 10, and buy the bungalow number 11, next door to number 12 which I have inherited.  I would probably acquire a tenant with number 11. I would gain an immediate income stream, without waiting for refurbishment or finding a tenant.  My care plan and the owner of number 11's plans have coincided.  He has decided not to return from New Zealand.  To make buying number 11 possible, the family trust would have to agree to the sale of number 10, and transfer their land charges to number 11.  I would also have to transfer a land charge for debt I have acquired helping my friend.  
Even though number 11 bungalow has been extended, and is in a better condition than number 10, the one I live in, I have been offered a price for this alternative to make it possibly the best option. 
A drawback is that selling a property to refurbish will result in a price, lower than the cost of the work.  However, there might not be time to refurbish number 10 for sale.  I am thinking that refurbishment for sale can be more selective, and less intensive than refurbishment for rental.  

*** I would appreciate any comments about drawbacks, snags, penalties, tax, or any kind of hidden snag and comments on alternatives.  
As I already own two properties, I would have to pay 3% stamp duty if I bought number 11 before March 31st 2021, but the likely agreed price could still make this alternative worthwhile.  After March 31st, I feel I could be better off letting out number 10, and avoiding a transaction with 5% stamp duty.  
If an emergency happens, when I sell the property I am letting out, I am afraid I will be hit by capital gains tax, even though the money is to pay for my home care.  
I would appreciate any comments about the best strategy for me.  
There must be millions of people in Britain facing similar problems, so what information and experience have members got?  

greatcrested

Sell one of the properties and invest the money wisely for your future.

Post on the savngs and investment board here.

At your age, and with your level of concern about future health, becoming a landlord with all the risks that involves is not wise.

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

Post 9: Letting agents: how should a landlord select or sack?

dimbo61

Sell your home that you are currently living in and move into the run down bungalow.
Spend some of the money you get from the sale of your current home on the new property.
Consider old age ! Wet room with walk in shower and built in seat. Wide doors and low breakfast bar, kitchen units.
Ramps and clever low energy lighting.
Good insulation and new double glazing, new roof and level garden area.
Large flat driveway

Aranyani

Agree with both the above, becoming a landlord could be a huge source of stress and financial losses in the future.  You want certainty, not the ups and downs of renting out property. 

[Deleted User]

Trying to oversee refurbishing a property when you are having problems walking.., not a good idea. 

Funding it when you have debts and a trust you need to go to to ask for money.., not a good idea. 

Dealing with the legal and practical ramifications of a rental (and what happens if a tenant can't pay rent?????) - not a good idea to start this now with your lack of knowledge, lack of funding  and physical challenges. 

There are easier and more sure ways of gaining income.  

Sorry..., I agree with the above post.

tacpot12

Your best strategy is to sell the property you have inherited, use the money to renovate the property you live in currently, clear your debts and invest the remainder.