Bridgefast Property Services

The challenges of caring for elderly family members for relocating employees

16th May 2011

Rob DolbearDirector

Setting the scene

• Moving home is stressful under any circumstances

• Add to that one or all of the following:– old age– ill health– unfamiliarity with the process– a move into care

• ......and you can see the challenges

• Each year over 250,000 elderly people move into care• 70,000 of those need to sell their home

Setting the scene

• At this stage most sons or daughters get heavily involved

• But what if they:– are in the process of relocating with their job– have already relocated remotely in the UK– have already relocated abroad

• The difficulties and stresses are enormous

The employer’s perspective

• An ‘expat’ with a feeling of guilt

• An ‘expat’ with increased stress levels

• Lost productivity / efficiency through:– absence / travel– distraction

• Home and host HR departments get drawn in

• How can the ‘expat’ be given peace of mind?

Issues that need addressing

• Choosing the right solution / environment

• Options for funding

• Selling the family home

• The move itself

Choosing the right solution / environment

• Immediate need or time for planning?• Domiciliary care• Retirement village• Residential care home• Nursing home (dementia care?)• Just meet current needs or rest of life?• Visits / taster days• Current cost / escalation clauses

Funding Options

• Selecting the right IFA (minimum CF8 qualification)• Society of Later Life Advisers (SOLLA)• Later Life Adviser Accreditation (LLLA)

• Sources of funding– State benefits and entitlements– Self funding

• Access to liquid funds?

Selling the family home

• Selecting the right agent• Managing the agent• Asking price / achievable sale price• Appointing and managing a solicitor• Negotiating on offers• Vacant property insurance• Arranging remedial / repair work / gardening• Drain down / lock change• Personal possessions / removals / auction appraisals /

house clearance• Utility companies

Possible solutions

• Employee Assistance package (UK and expat employees)• Helpline support for expert advice; and• The resources to take responsibility

– sourcing the right care– funding the care– managing the sale of the property– the move

• Discounted fees• Jointly branded literature

Possible solutions

• Bridgefast Property Services• Subsidiary of HCR Group• The ability to provide a ‘one-stop shop’ solution• Service summary

– Advice on care options– Care/Nursing home search– Accompanied visits– Managed property sale service– Financial Adviser partners for financing options– Advance funding facility if required– Move assistance

• Deal with the homeowner or POA

Case Study 1• Mrs T on extended stay in hospital, Mr T living at home. Both

looking to move into care• Home visit to London apartment to talk through our service.• Accompanied visit to bank to collect safety deposit box• Two market appraisals arranged which predicted probable

sales prices of £690,000 and £600,000 - £650,000 • Two auction appraisals for items of value, including ~150

bottles of wine!• At this stage Mr T happy to move to care home; organised

removal quotations / arrangements.• Arranged for clothes and possessions going to care home to

be cleaned• Arranged collection of items for auction, house clearance for

remaining items and cleaning of property prior to marketing

Case Study 1 (continued)

• Property marketed at £695,000. Offer of £695,000 received and accepted by client. Final sale price of £670,000 agreed following mortgage survey down valuation

• Mr T’s own solicitor appointed to do conveyancing• Liaised with property management company to pay

outstanding service charge and ground rent to enable sale to progress

• Arranged final meter readings, closure of utility accounts, and final bill despatch

• Completion achieved 4 months from marketing• “James provided a superb service. I was most impressed.

There were a great many issues and you certainly earned your fees. I know of no-one else who could have provided that level of service throughout. Marvellous”

Case Study 2

• Mr B had moved in to a local Barchester care home in Basingstoke

• One son and two daughters-in-law visited our offices to talk through our service (7th February).

• Intensive day – care home visits, IFA meeting, then property sale discussion

• Two market appraisals of Mr B’s retirement apartment arranged - predicted probable sales prices of £85,000 and £90,000

• We instructed and initially paid for the Energy Performance Certificate

Case Study 2 (continued)

• Property marketed in mid March at £95,950 in line with our marketing recommendations

• At the beginning of March a care fees annuity quotation was received and Mr B wanted to proceed with advanced funding to meet the premium

• RICS valuation carried out, and our solicitors appointed to undertake the legal work to provide funding, and in relation to the sale of the property

• Maximum permissible funds were advanced on 18th March. • Under offer on 15th April for £93,000

Case Study 3

• Son/POA in Australia• Managed sale of Mother’s property in UK• Standard services – sale legals, vacant property insurance,

removals, garden maintenance, EPC, house clearance, cleaning

• On market 26th May 2010 £110k, accepted offer 29th July £107k, completed 30th Sep 2010

• “A very big thank you for all the help that Bridgefast has provided. I really appreciate your help and responsiveness with me being so far away. I would be more than happy acting as a reference for Bridgefast’s services especially for families separated by huge distances where a loved one has to go to a care home in the UK and their family is overseas”

What does it cost? (Standard fees)

Helpline service – bespoke, depending on numbers/requirements

Managed Sale Service:• Arrangement Fee £299 (incl.VAT)• Management Fee 2.25% (+VAT) of sale price achieved

– Out of which, we pay Estate Agents Fee and standard Solicitor’s Sale Fees

• Additional services @ supplier cost (e.g. House Clearance, Removals, Auction appraisals, Gardening, Vacant Property Insurance)

What does it cost?

Funding :• As above plus:

– Funding arrangement fee (which can be added to the loan):

• Lump sum - 1% (no VAT) of sum advanced, subject to a minimum of £875

• Monthly payments - £795 (no VAT);• RICS valuation fee at cost (can be added to loan)• Interest at 5% per annum (calculated daily and added to

the loan)

Conclusion

• With an ageing population and dispersal of the nuclear family many more employees will at some stage have elderly relative issues to deal with

• Employers can demonstrate their care and understanding by providing access to the right help and assistance

• A low cost way of reducing the risk of assignment failure

For more information

• Come and see me afterwards

• Visit the HCR stand (R13)

• Visit our website www.bridgefast.co.uk

Any questions?