For various reasons my income based on pensions may not reach £18600 when we reapply next year for the second visa after 30 months living in the UK. I will be 70 then and my wife will be nearly 60.

My wife has a pension in Thailand of approximately £200 a month from a teaching authority in Prachua which I di not include in the first settlement visa.

Can this pension count towards our joint income to satisfy the £18600 requirement. The pension stays in Thailand and helps pay for my wife's family needs..I can get a letter from the Teaching authority to show monthly payments and payments into her bank book..I cannot find an answer to this on Gov Uk website..

If this pension does not count I believe I can rent out my house which I own outright and rent a cheaper property .I believe this rental income of approx £500 a month can help us to by pass the £18600 hurdle regardless of what I pay out to rent another property..Can anyone confirm this please?

Your wife's pension can be used, if the requirements are met. Firstly, to confirm that, Appendix FM 1.7: Financial Requirement says ( my emphasis) :

The gross annual income from any State (UK Basic State Pension and Additional or Second State Pension, HM Forces Pension or foreign) or private pension received by the applicant’s partner or the applicant can be counted towards the financial requirement.

The requirements are :

To evidence a pension, all the following evidence must be provided:

(i) Official documentation from:

(1) The Department for Work and Pensions (in respect of the Basic State Pension and the Additional or Second State Pension) or other government department or agency, including the Veterans Agency;

(2) An overseas pension authority; or

(3) A pension company, confirming pension entitlement and amount.

(ii) At least one personal bank statement in the 12-month period prior to the date of application showing payment of the pension into the person's account.

You could rent your house out to meet the threshold requirement, but you would need to provide evidence of 12 month's rental income, 12 month's bank statements, etc.

Thanks for that Tony M..