Q My aunt (89 years young) is currently in a care home but is desperate to get back to her own home as she’s not happy in a residential home environment.
She cannot look after herself and her home will need much work to refurbish to allow her to live there (all the plumbing, kitchens and bathrooms need replacing). She cannot afford to do this but has a friend who is willing to buy below market value, move in with his young family and allow my aunt to live on the ground floor, rent free. He and his wife would provide the care for her.
I am her attorney and it worries me that this could fall foul on many grounds. My primary concern is her long-term well being and I want her to be happy. She believes this is a good option for her. She also has her mental faculties so can make her own decisions.
What should be the legal steps taken to protect her long term interests and ensure she can continue living there as long as she wants, rent free (assuming health permits)
MB
A I think you are right to be concerned that such an arrangement could go horribly wrong. The only surefire way to ensure that your aunt can carry on living in her house rent-free for as long as she wants is for her to retain ownership of the property. So maybe the answer is to turn the arrangement on its head. Instead of selling her house to her friend for a bargain price and losing control of her destiny, she could invite her friend and his family to live rent-free in the part of the property she doesn’t inhabit in exchange for their providing her care.
If the plumbing, kitchen and bathrooms genuinely need replacing – which I somehow doubt unless they really are non-functioning and that was what made her move to the care home – she could finance any necessary work by releasing equity from her property. Unlike selling to a friend, equity release gives you the right to live in your property until your death or a permanent move into residential care. If, on reflection, your aunt decides that being cared for by her friend and his wife might not be ideal – especially if her health deteriorates – she could use equity release to pay for professional carers to look after her in her own home. She would also have the cash that she would not need to spend on care-home fees.
