Please note: this article was not written by a financial or legal specialist, and does not cover every circumstance. Please consult a specialist before making any financial or legal decisions.
If you face the prospect of selling your home to pay for accommodation, you could first explore renting out your home, even temporarily.
Benefits of renting out your property to pay for a care home
There are multiple potential benefits to renting out your home to pay for care:
- If market conditions mean that by selling today you might not get the property’s full value, then you can keep the property and consider selling at a later date
- The value of the property may go up over time
- The cost of the rental income may cover all of the care home costs. If it doesn’t, you can top up the cost of the fees using savings, pensions or other means of topping up.
- You can keep the property in your estate
- Bills such as council tax and utility bills will be paid by the people renting the property
Possible downsides of renting out your property to pay for a care home
Questions about funding care?
Care Sourcer’s friendly care experts are on hand to provide guidance on typical care costs, help you explore your funding and benefit options, or even negotiate care fees on your behalf. Call us on freephone:
- There may be periods of ‘down time between tenants when the property isn’t providing you with any income
- Using a letting agent to manage the property will incur extra costs
- Costs like repairs and redecorating can crop up unexpectedly
- The income you receive from the rent might push you over the limit for local authority help, meaning you need to contribute more towards care costs
- You may need to change your mortgage to a buy-to-let mortgage which can have higher interest rates
It is recommended to consult a care fees adviser before making any large decisions about your property
First steps towards renting out your property
There are a number of people who you should consult with before making a decision about renting out your property to pay for care:
- Your mortgage lender as there may be implications for the type of mortgage you have – for example, your lender may ask you to change to a buy-to-let mortgage
- Your insurance company as you need to check what will change if you decide to let the property. It’s important that your property stays covered for events such as fire, damage or burglaries
- A qualified letting agent, if you plan to use one. They can help to advise you on how to market the property and can tell you how they would manage the property in your absence.
Questions about funding care?
Care Sourcer’s friendly care experts are on hand to provide guidance on typical care costs, help you explore your funding and benefit options, or even negotiate care fees on your behalf.
Call us on freephone: 0800 098 8299 (Mon-Fri, 9am-5pm)
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