Funding a disabled placement

piglet22

My mum has MS and currently lives in a 2 up 2 down about 40 miles from us. Her health has deteriorated and she is likely to become wheelchair bound in the near future. The house was owned by my mum until 2011 where upon she transferred it to me. At the time it was apparent that her spending was out of control (signs of compulsive purchases and hoarding) and she was getting ripped off by door to door sales merchants who sold her an over the top kitchen, soffits and a front door before I got power of attorney and the transfer. We mortgaged the house in order to pay off the debts.

At the time it was a 60% mortgage but now more likely 45%.
My mum is approaching 60 and we feel that the accommodation offered by social services is more for the elderly. Indeed she is currently in respite with people some 30 years older than her. With this in mind we went to see a Leonard Cheshire home for the disabled. They were extremely helpful and my mum loved the place and they have a vacancy.

Here lies the problem. The social worker has sent a really pessimistic e-mail advising that it is unlikely that Leonard Cheshire will accept local authority rates, that they are much dearer than older people services and because of the house it is likely she would need to be self-funding. I understand the council can still have a claim on the house but it is in a real state because of my mum's hoarding. I have no idea how much it would cost to get it into a saleable condition and to sell as is may take some time. The social worker has made it clear that should we sell the house to fund, once the money runs out it is likely my mum will have to move because of the funding.

My concerns are

a) We would rather not sell the house at this stage. If we could let it out and contribute the proceeds, this would be a much better option but I fear that the rental income is going to be miniscule.

b) know the council CAN put claim to it but is it definite they will?

c) What happens in the interim, say we agree to sell the house to fund? I am aware of the 12 week disregard but that isn't very long to sell a house. Is it the case that they will put a charge on it until sold and we pay back out of the proceeds.

If anyone can help, it would be greatly appreciated.

tomtontom

Why would you rather not sell the house? You'll find most houses will sell at the right price - surely better for mum to have the funds and the best care available?

pmlindyloo

Whether you sell or rent you will still have to sort the house out.

You need to do some sums.

How much are the fees for the Leonard Cheshire accommodation?

How much are you likely to receive in rent for the house?

Remember that your mum will continue to get any benefits that she is receiving to go towards paying the fees. Do a benefit check to make sure that she is receiving all the benefits she is entitled to.

Is she receiving ESA? Which group? Has she/you notified them that her condition has deteriorated? Does she receive DLA? Again, have they been notified of the change in her condition.

Depending on the fees it might be possible to pay from the rent and her income.

As regards selling the house then yes, they will allow longer than 12 weeks in certain circumstances and you pay back out of the proceeds of the house.

Plus, when/if the money runs out then they may ask for her to be moved to a cheaper place but because of her age, you can make a good case for her to be with people of her own age at the present time.

piglet22

Thank you. Sorry I should have been clearer. We are happy to sell the house but would prefer not to as it is. The problem is that we do not have the resources to get it up to scratch either time wise or financially. We have a disabled child and work full time. We might be able to turn it around in 12 weeks to rent but not sell and complete iyswim.

My concern will selling as is mainly is because it would take my mum above the £23k threshold but not by a considerable amount, maybe £40k in total after fees and that isn't going to last long. I don't want to see her go through major upheaval again.

She already receives the additional allowance ESA. She is due a small pension soon. Already on high rate DLA. She has a reasonable income and could contribute from this but as yet we don't know the cost of Leonard Cheshire homes other than it is high.