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The Royal British Legion (RBL) plans to open a new care home in Wales after selling a property in Powys housing elderly former services personnel.

Care Inn Limited, which operates 11 homes in south Wales and Swindon, officially takes control of Crosfield House, in Rhayader, in a few weeks.

The home's future had been in the balance since 2008, when it emerged that it was facing a £500,000 deficit.

The legion said it can now try "in earnest" to find a site for a new home.

Crosfield House, the only RBL home in Wales, is home to about 50 elderly ex-servicemen and others, and employs up to 90 staff.

It was announced in June that it had been bought by a private company, but the deal had not been finalised.

The future of Crosfield House had been in the balance since 2008, when it emerged that it was facing a deficit of £500,000.

In a statement, the RBL said: "The Royal British Legion has exchanged contracts with regards to the sale of Crosfield House. On completion the home will be part of the Care Inn Group who currently operate 11 care homes.

"The home is being sold as a going concern, which was our primary aim.

"On completion of the sale Crosfield House Ltd, a division of Care Inn, will be responsible for providing care and collecting fees."

The statement added: "The Royal British Legion set itself the goal of selling the home as a going concern, a difficult objective for many reasons.

"That has been achieved. Now we can begin in earnest the important task of identifying a suitable location for a new care home in Wales."

Care Inn has been asked to comment.