Fair deal scheme - mother's house has had an offer from potential purchaser.

psawyer76

Registered User
Messages
8
Hi all,
I’d appreciate some advice if you can.

My mum has been in a nursing home for 5 years and is paying the fees from the nursing home loan using her house .She has a small amount of savings under the 36k threshold and so 80% of her pension is going towards her fees. Her house is empty and is starting to fall into disrepair. The family are looking after it as best we can but none of us live locally or are able to put much money into it. It wouldn't be worth a huge amount of money.

Someone has approached us about possibly buying the house. Let's just say hypothetically that happened, would I be right in saying that if we do that, her income is reassessed and that this would be a foolish thing to do?
Thanks for any help or advice.
 

Thirsty

Frequent Poster
Messages
2,442
If you sell, then yes, the proceeds will be included in the means assessment; whereas from the Fair Deal loan scheme you have now reached the max that can be deducted if the house is sold after her death (current rate 3 years @ 7.5% per year).

If you don't want to sell, would you consider renting it? You could include an agreement that the property will be maintained (grass/hedges etc.,).
 

AlbacoreA

Frequent Poster
Messages
3,413
Yes they will take 80% of rental income.

IMO, there just no point in selling it, or renting it, if you are in the fair deal scheme.

Well not unless you just want rid of it, because its worth nothing and too much hassle.
 

Saavy99

Frequent Poster
Messages
523
Her house is empty and is starting to fall into disrepair. The family are looking after it as best we can but none of us live locally or are able to put much money into it. It wouldn't be worth a huge amount of money.

Someone has approached us about possibly buying the house.
In the current environment SELL.
Consider yourself lucky someone has approached you with view to purchasing.
 

elacsaplau

Frequent Poster
Messages
858
Isn't this an example of the lack of joined-up thinking of the Irish state?

We have a housing crisis yet the policy here is to effectively incentivise people to leave houses empty rather than have these houses used sensibly?
 

demoivre

Frequent Poster
Messages
2,653
In the current environment SELL.
Consider yourself lucky someone has approached you with view to purchasing.
Only take this advice OP if you want 7.5% of the net proceeds, per annum, to be used to fund your mother's nursing home fees.
 

Saavy99

Frequent Poster
Messages
523
The house has been left vacant for 5 years, probably already has maintenance issues and will likely become derelict as the more years pass by.
 

psawyer76

Registered User
Messages
8
Thanks for all the suggestions. Yes, it’s crazy that a house has to lie empty for an undefined amount of time. I spoke to a helpful lady in hse and she said selling wouldn’t be the best option. Lots to think about.
 

AlbacoreA

Frequent Poster
Messages
3,413
Well there is a point in letting it if it maintains the value by preventing it from falling into disrepair.
It would be cheaper to just to maintain it. Renting causes more wear and tear that then has to paid for with 20% of the income.
That's assuming no issues.

I've looked after a few empty houses, and they didn't suddenly start falling apart because no one was in it.
 

twofor1

Frequent Poster
Messages
1,375
We recently sold a house belonging to a deceased relative who was a long term nursing home resident under Fair Deal. In this case it cost €4k annually to keep the house maintained and empty, had the house been sold before death, the amount assessed on the house sale proceeds would have been over €40k annually.

Even for a house that was not worth much initially and is now falling into disrepair, it is hard to see it making financial sense to sell while in a nursing home under Fair Deal. But like everything else, crunch the numbers.

On the thousands of empty houses, belonging to Fair Deal nursing home residents, There was talk of incentives to make some of these homes available, that was 2 years ago, heard nothing since.

https://www.independent.ie/business/farming/agri-business/finance/fair-deal-residents-to-be-given-bonus-for-renting-homes-under-plan-to-ease-housing-crisis-37303728.html?gclid=CjwKCAjwsan5BRAOEiwALzomX7Jt54U02-k41Rj7bUbZAfxqfnO2c6Cf5QOULy8XEWCSPBQCdzKh2RoCRgUQAvD_BwE
 
Top