Many of the calls to our helpline are from individuals and couples, in their 60’s and 70’s, who plan to sell their properties and move to Spain.  Older people who live on quiet a modest income but whose property has increased in value over the last few decades are attracted to the idea of buying somewhere cheaper abroad and using the spare capital to fund a more comfortable lifestyle. Their major concern when they ring us for advice is that if they ever want to return to the UK they may not be able to so.

With luck they may have many good years in Spain, but at some stage they may want to return to the UK, either for health reasons or because one half of a couple is left on their own. The price of housing abroad can be considerably less than here and if they want to return they may not be able to buy a property in the UK with the proceeds of their Spanish home. On the rental side they are unlikely to be given any priority by a local authority or housing associations for accommodation once they have been out of the country. They would generally have to return, become “habitually resident” again, and rent privately or stay with family, if that is possible, to establish local residency in a particular council area. This can often be six months or a year. They would be then assessed along with applicants on the waiting list or choice based letting scheme.

There are several alternatives if they return with some capital but not enough to buy outright on the open market. They could consider a Life Interest Plan, where they buy only the right to occupy a property for the remainder of their life. This would be much less costly than outright purchase. Life interest plans are offered by Homewise Ltd but need careful consideration. Call EAC’s advice line 0207 820 1343 Mon-Fri 9-5  for our Life Interest Plans information sheet:

They could try renting retirement accommodation privately. There is one commercial UK wide provider of privately rented accommodation –Girlings, 0800 525 184 www.girlings.co.uk

Another alternative is to consider buying two properties with their initial capital- a retirement flat in this country, perhaps near to their family or close friends who could offer support in the future, as well as their home in Spain. They could then sub let the UK property to increase their income. They would need to check that their lease permits this. They would then have a base to return to should they ever need to come back to the UK, and the proceeds from their property in Spain could be used to increase their income at that stage.

Individuals can call our Advice Line 0207 820 1343 if would like a list of retirement leasehold property in a particular town or district in the UK, or download it from our website; www.housingcare.org