Can you help me?

[archer1204]

Recently we had to put my nan into a local resident home as she cannot manage on her own anymore even thou we got home help etc in its gone past that stage.So we are now looking at 20k a year in fees etc.She has got some savings so for the first 3 years we are ok.
My nan does have a nice bungalow if you were in our position would you look at selling it by auction etc or hold on to it for another year. Any useful advice would be greatly appreciated.

[Mr Veritas]

Personally,(from nearly 60 years of owning/selling) houses,I would hold onto it until you need to sell it.
Most buyers at Auction are after a bargain,and the reserve prices are usually MUCH lower than the market price.
I think the market WILL rise again,just when and how long that will be is another matter.If you hold onto it and sell it in the usual way at least you have some say how much it goes for,given that you can set the asking price and decide how much (if any) reduction you make.You can also refuse offers,which you cannot do at Auction.
If(as you say) you may have 3 years till you have to decide,I would wait and see.The market is in a bad way now,BUT I don't think there is going to be a BIG drop in prices.Even if there were,after 3 years things should start to look up again.

[LoftyLottie]

I am in the same position, and we are holding on to the house. Can you rent it out and make some income to go towards the care home fees. My son is actually renting his grandmother's home.

I certainly wouldn't sell it if the money wasn't needed yet.

[LoftyLottie]

Not a good idea to leave it empty anyway. Renting it out would save deterioration and keep the house safer from theft, etc, apart from raising some funds for your grandmother.

It would be good to speak to an experienced accountant. The first hour is usually free. There are tax implications.

[cassa333]

Why not rent her house out and pay the fees from the rent?

Even if this only pays half the fees it will mean her savings will go further...

[bednobs]

Unless you are named as power of attourney, on a document registered at the court of protection AND your nan hads lost mental capacity, you will not be able to do anything about selling/renting out her house anyway

[LoftyLottie]

But if your Nan has mental capacity and understands these things then she can do it with your help!!

However, it would be a good idea for someone to obtain Lasting Power of Attorney if this has not already been done.

I have an Enduring Power of Attorney and could deal would her affairs before registration, although I have now registered it because her mental capabilities are now failing.

The rules have now changed though.

[archer1204]

wow thnx for all the quick replies we do have an epa already set up.Not really considered renting the property out.Because we live about 200 miles away from the property havnt looked at normal estate agents thats why we were thinking of putting into auction.
Has anyone auctioned a property before what hapens if you want to set a reserve higher than the auctioneers want to set.
Also when you say tax implications can you expand a bit further this is all new to me.cheers again

[LoftyLottie]

Hi,

If your grandmother's house remains empty for three years after she left it, there are some tax implications regarding Capital Gains Tax. Ethel will probably know more.

[LoftyLottie]

I actually meant if your grandmother has not lived in the house for three years there are some capital gains tax implications. I did have them explained to me. However, this was over two years ago, and tax laws do change.

[Mr Veritas]

You CAN set any reserve you like at an Auction.
However,if it fails to sell (or even get near to selling) due to to your high reserve some Auctioneers will charge you a % of the reserve price for their time and efforts.
Not all Auctioneers do this,but it's wise to check their terms and conditions first.
BTW,you still need a HIP Pack even at auction.

[Rosetta]

If it were me, I would also rent it out. Some Estate Agents act as letting agents as well as selling properties. The market is depressed at the moment, But as Mr Veritas says, this wont last forever and you do have three years grace.

Make sure your Nan gets all the benefits she is entitled to, As she is self funding she should still get Attendance Allowance. If its not paid at the higher rate it would be worth your while putting in for it as she now needs 24hr care and her needs have increased.

If you want advice about benefits CAB are good, or you could get advice from your local Age Concern

Good luck whatever you decide