I need advice about selling with sitting tenants

[Cantdonumbers]

Sorry this is long so as to avoid drip feeding.

I have Power of Attorney for my partner who has dementia and has been resident in a Care Home for the past two years. He is self-funding and his money will run out towards the end of this year.

He owns a property which is let out to a couple who are personally known to him and have been there since he bought it in 2002. They both have disabilities and have been on the list for a council house for years. I don’t know anything about the extent of their disabilities or their financial situation except that he drives a taxi and she cannot manage the stairs and sleeps in the only living room.

The property is managed by my partner’s wife (they have been separated for 40 years but never divorced and she and I have a polite relationship). She takes the rent which he pays tax on. She is the sole beneficiary of his will, but there is likely to be very little left, if anything. I am financially independent.

His wife has made the tenants aware of the situation and understandably they are very worried and don’t want to move. I am reluctant to evict them, mostly because I feel morally obliged but I am also aware that the costs involved will be considerable if they take the advice of the LA that leaving before they are forced out is seen to be making themselves intentionally homeless.

They were confident that a friend of theirs would purchase the property with them as sitting tenants but he can’t get finance. They are now saying they have other prospective buyers. I have had valuations of around £230,000 and I would certainly be very negotiable but I think they are probably grasping at straws.

If that doesn’t work out I am thinking of putting it up for sale with them as sitting tenants. I have been googling and see that I can expect to get up to 60% less. As my partner’s attorney under the PoA I do have an obligation to act in his best interests. He will also have to pay capital gains tax which is likely to be at least £25,000. I just don’t know what to do.

There are companies on line offering to buy property in these circumstances. Has anyone any experience of doing this? I would welcome any advice.

I think your first step should be to speak to SS. I know your partner is self funding but there maybe a question of deprivation of assets if he runs out of funds.

Explain to SS that to maximise the property value you need to evict the tenants and re-housing them will most likely fall to SS. Alternatively you can sell with sitting tenants and reduce the price accordingly and you are worried about deprivation of assets.

SS then have to advise.

@Propertylover Thank you for your response. Unfortunately the house is in a different LA area from the care home where my partner lives. In any case social work departments dealing with elderly care are completely separate from housing departments, they don't work together. But you are right, I am concerned about possible accusations of deprivation of assets.

The care home can let you defer payment but they will have to have the title absolute on the property. This means that on the event of your partners death the property will be sold and they will be entitled to take the percentage of the proceeds which they are owed. This will have to be drawn up by a solicitor. At this stage, this is the only thing I can suggest.

@HipHop63 In that case, would the rent still be payable and to whom? To the care home, the LA or to my partner (I would switch it to him from his wife in that case)?