Although officers in the army could sell their rank when they wished to retire from Military life, for the lower ranks it was not so easy as they usually enlisted for life. However for soldiers like John Hannan who had been wounded in battle, it was possible to be released from duties. John had served eleven years in the army before embarking for Australia. He received his 40 acre Veteran's grant and became one of probably several thousand soldiers who settled in Australia.

John Hannan had fought at Waterloo alongside William Hall who owned a 40 acre allotment situated nearby Hannan's property and  called in 1912, 'Hallsborough'. The Hannan grant was situated between Oakhampton Road and Campbell's Hill and extended from the Hill  to the Hunter River. The road later to be known as Hannan Road ran through the original grant  Situated near the long bridge in Maitland, the area became known as Veteran's Flat. Other veterans to receive grants included Robert Aickenhead, John Balcott, Richard Browning, John Chalonel, James Cornish, William Critchley, Joseph Daley, John Grills, William Prignall, Peter Reed, Stephen Robinson, John Thompson, William Hall, Thomas Godfrey, William Turley and George Turner.(2)

In late November 1843 a sale took place at his premises by the order of the Sheriff's Bailiff John Kingsmill. Two drays, a growing crop of wheat and household furniture were all to be sold and in the event of these chattels not satisfying the writ, the Right, Title and Interest in the premises and land would also be sold

By the end of 1843 Hannan House had become a temporary hospital for the district when the Benevolent Asylum situated in Caroline Chisholm's barracks became inadequate for the needs of the community.  The house was used in this capacity until the new Maitland Hospital was opened in 1849. The first ten patients were received from Hannan House into the new hospital on 8th November 1849.

In August 1844 John's eldest daughter Louisa Jane married John Waugh Drysdale.