Equity Release to pay for homecare- Any thoughts

joanne1971

Hi

The council in the area I live wont fund the overnight care my dad needs. They want him to go in a care home. I dont think he is at that stage.

He has no savings but I am thinking I can do equity release on his home to fund the care he needs at home.

I would never normally consider equity release - I ve always thought of them as a total rip off but I am thinking desperate times call for desperate measures.

I also sort of feel in a no win situation as if he leaves his home to go into residential care the house will be taken in payment anyway. So I am thinking equity release at least gives him the best care now even if we loose thousands.

I would be grateful for other peoples opinions on this situation - as this is a very emotional time for me and I am having to raise funds fairly quickly it is hard to ascertain if I've missed some obvious flaw with my plan.

Other information that may be relevant is that my mum is in a nursing home (funded by the LA - at the moment). They own the house jointly.

Please help if you have any ideas. I should point out protecting assets is not important here. I want to give my dad the best quality of life but I also dont want to do anything financially stupid.

I hope all that made sense.

Thanks

xylophone

Does he receive the higher rate of Attendance Allowance?

greenglide

Is the LA paying the fees for your mother because the property is excluded from an assessment because your father is living there? If so would not equity release not release funds that the LA would then want to contribute to your mother's care?

Presumably the house is in joint names?

margaretclare

The OP said that the house is owned jointly. So Mum's agreement and signature would also be required.

It's a myth that 'the house would be taken'.

BTW this could not be done quickly. It's like a remortgage, the property has to be valued, conveyancing, things that can't be done in a hurry.

Mojisola

Do you have power of attorney for them both?

John_1951

Mojisola wrote: »

Do you have power of attorney for them both?

I was looking at this. If you don't have power of attorney, it could get very complicated selling the house. But care costs can be extremely expensive, eating this up quick. Once there is less than, I believe 23K ish left, then the LA have to step in, but you will have no choice on which care home.

Linton

A question which I dont know the answer to....

If you go for equity release to pay for overnight care now, what happens in say 2 years time when Dad really does need to move to residential care. Can you simply sell the house and pay off the equity release mortgage with minimal hassle and no excess fees?

Mojisola

joanne1971 wrote: »

The council in the area I live wont fund the overnight care my dad needs. They want him to go in a care home. I dont think he is at that stage.

He has no savings but I am thinking I can do equity release on his home to fund the care he needs at home.


Other information that may be relevant is that my mum is in a nursing home (funded by the LA - at the moment). They own the house jointly.

Any money that is released from the house will be assessed as owned 50/50 by your Mum and Dad. That could affect whether the LA continue to fund her nursing home.

magpiecottage

You really need to speak to an adviser who is qualified and authorised to advise on investments and hold an additional long term care advice qualification so that they understand the relevant rules.

They also need to be qualified authorised to advise on mortgages and hold additional equity release qualification.

Such advisers do exist but are not that common. Ask to see their certificates confirming they are qualified.

sleepless_saver

joanne1971 wrote: »

Hi

The council in the area I live wont fund the overnight care my dad needs. They want him to go in a care home. I dont think he is at that stage.

Taking a step back from the equity release issue, has the local authority provided you with a copy of their assessment and the reasons why they have taken that decision? They should have done and you can challenge it using their complaints procedure - see Age UK factsheets FS41 and FS59. Might also be worth speaking to local councillor. (However, I doubt if any local authority will provide regular fulltime care overnight if that is what you are looking for.)

rheme

Have you looked into CHC Funding for your mum in the nursing home and seperately for your dad?

Don't know their state of health but CHC Funding is where the NHS pays for their care. It is not means tested and an assessment is required. If you go down this route please do your homework and do a dummy run yourself prior to the assessment. If they are awarded this then the house will be protected.

The assessment has to be carried out by a multi disciplined team and you are entitled to be present to represent your parents.

They can award full or part funding and this may be applicable in your parents case e.g. mum in full time nursing care and dad in a care home. Can't dad go in the same nursing home as mum? Will take pressure off the family when visiting and they can keep each other company.

Do not let social services do the assessment you want it done by a CHC Assessor.

Have been through this process myself for my mum and Social Services didn't tell me this funding existed and her GP denied all knowledge. Success does however depend on state of health.

If you do not have a POA for property and finance and your parents have capacity then put them in place (one each). Good idea to get one for welfare too so that the NHS have to keep you informed of their well being as they enter the later stages of their lives.

Just something to think about and it can all be done very quickly. If you fail at the first attempt then appeal.

Good luck.