Selling and moving to sheltered acc

Reeferjon

Sorry for the e-post.....I ended up on the wrong board.

My elderly in-laws own their own property; they need to be moved to sheltered accommodation, unfortunately the value of their property means that most of it will get used as rent etc in the sheltered accommodation system.
My question is how can they reduce the amount of cash/capitol they have after selling the property to a level that is acceptable and still make use of it themselves or within the immediate family.
Many thanks John.

EdInvestor

Why is that?Is the rental of the sheltered accommodation a lot higher than the income they would get if they rented out their home or invested the money to earn an income?

cattie

They could choose to buy a sheltered developement property rather than rent one from the local council or housing association?

Farway

Reeferjon wrote: »

Sorry for the e-post.....I ended up on the wrong board.

My elderly in-laws own their own property; they need to be moved to sheltered accommodation, unfortunately the value of their property means that most of it will get used as rent etc in the sheltered accommodation system.
My question is how can they reduce the amount of cash/capitol they have after selling the property to a level that is acceptable and still make use of it themselves or within the immediate family.
Many thanks John.

They should be very careful here, reducing your assests could be construed as deliberate deprivation of assets in order to gain benefits.
The council / DHSS may decide to assume those assets are still availbale & [even if they are not] and refuse to allow claims or reduce rents

It is not after all going to be money already under the mattress, there will be a large sum involved & a bank audit trail to follow for any one who wants to

seven-day-weekend

Are you saying that they will not qualify for Housing Benefit because of their capital?

Well if they have the capital they should pay, surely? They are allowed to keep £6000 and qualify for full HB, and up to £16000 and qualify for some.

As Edinvestor says, invest the capital and it may realise enough interest to pay the rent. Or rent their house out instead of selling it and use the rent from that to pay the rent on their sheltered place.

Or as cattie says, buy a place instead of rent one.

Hope it works out for them.

margaretclare

Reeferjon wrote: »

Sorry for the e-post.....I ended up on the wrong board.

My elderly in-laws own their own property; they need to be moved to sheltered accommodation, unfortunately the value of their property means that most of it will get used as rent etc in the sheltered accommodation system.
My question is how can they reduce the amount of cash/capitol they have after selling the property to a level that is acceptable and still make use of it themselves or within the immediate family.
Many thanks John.

There's much that's going on here which I don't understand. However, here goes.

It should be possible for your in-laws to sell their property and buy a sheltered accommodation apartment. My DH goes to some of these to help people with their computers, and he has recently learned that, where it used to be possible for people to sell a property of their own and then rent, it's no longer possible, at least not around here.

What is still possible, however, is that if the value of the existing property is less than the proposed sheltered accommodation purchase, a part-owned part-rented arrangement can be worked out.

I don't understand what you mean by 'make use of it themselves or within the immediate family'. If they're buying an apartment within a sheltered complex (which are very nice!) then they ARE making use of it themselves. I can't see what on earth it ever has to do with the 'immediate family'.

HTH

Margaret

Reeferjon

Thanks for your replys and HNY.

Things have moved on, my mother in-law is now wheelchair bound and as a couple they should be being moved into sheltered accomodation within the next 6-12 months.
The most immediate thing is a wheelchair accessable vehicle.
Now they have small savings only, not enogh to purchase a vehicle.

Q.
Would they be able to release equity from their home (say £12K) and use it to purhase a wheelchair accessable vehicle (they are not legable for mobility due to means and age) bearing in mind that within the near future they will be in self funded sheltered accomodation. What effect will the one have on the other.

My wife is also looking into buying an apartment within a sheltered complex localy to see what is available.

The mother in-law now requires 24/7 care so I don't think that the costs incured by this in sheltered accomodation would be covered by the interest returned from renting the property out or from investing the capital.

Many thanks.

EdInvestor

It would appear that what they need to do is sell their house and either

a)Buy an apartment in a sheltered complex and use the remainder to "buy in" care on a live out basis

b)Invest the money and use the returns to cover the rent of the sheltered accommodation and the cost of the bought in care.

But if your MiL requires 24/7 care, is it likely she will need to go for full time residential care soon?If so it might be best if they stayed put where they are, as the council will cover the cost of that residential care as long as FiL is living in the family home.

Biggles

Do they need a wheelchair-accessible vehicle? We were easily able to move my mother from the wheelchair to my car and back, and the wheelchair fitted neatly in the boot.

mummytofour

Can mother in law get DLA higer rate mobility? If so she would be able to get a moterbility car.

Biggles

mummytofour wrote: »

Can mother in law get DLA higer rate mobility? If so she would be able to get a moterbility car.

I don't understand John's statement that his Mum's not eligible for Motability 'due to age and means'.

Age and means don't come into Motability. If you get the higher-rate mobility component of the DLA, you can choose to give it up to pay for the lease of lease a car.