Sell grandmother's house now or put a charge on it to pay care home? Advice needed

patanne

Don't forget to apply for attendance allowance - you can't get this if you are LA funded. Our care home manager told us that the fact of them being in a care home made it easier to get the full rate.

Mojisola

riverboat83 wrote: »

It was the council social worker who suggested putting a charge on the house instead of selling .

Or put a charge on the house until it sells? If the council didn't do this, then someone else (like a relative) would have to pay the weekly care home bill.

patanne wrote: »

Don't forget to apply for attendance allowance

A person counts as self funding and entitled to AA even if there is a charge agreement with the council. Having what amounts to a loan from the council is not the same as being funded by the council, although we came across officials who didn't understand the difference.

martindow

I agree with the general sentiment that selling as soon as possible takes away the worry of looking after an empty house. Seeing a relative declining is awful enough without anything else.

From a purely financial point of view, is interest added to the unpaid nursing home fees?

Gigervamp

Mojisola, that colour font you've used is quite difficult to read.

OP, sell the house.

Mojisola

Gigervamp wrote: »

Mojisola, that colour font you've used is quite difficult to read.

Any better?

Gigervamp

Mojisola wrote: »

Any better?

Ah yes, much better!

patanne

We were told by a couple of social workers that Mum couldn't claim AA. The care home manager confirmed our research which said we could. I wonder how many people get told this & so just don't claim. With care of any kind being so expensive £80 per week can make a difference.

Keep_pedalling

I agree, with the others, get it sold ASAP, your mother will be under enough strain as it is without the added burden of maintaining the house.

Turning all her mother's assets into liquid ones will also make managing the finances easier especially once you Gran's savings are getting near the £23,250 limit where LA funding will kick in.

G_M

I recommend the sale option too.

Unless you are willing to take on the responsibility of letting the property to generate an income.

Is there a mortgage on the property? Have you got the time and nouse to become a landlord? would there be a contingency fund in case of problems?

See

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

teddysmum

martindow wrote: »

From a purely financial point of view, is interest added to the unpaid nursing home fees?

I was wondering about that. After all, a loan is being taken.


Another point: If the house is sold and there is a lump sum, it is easy to work out when the threshold for financial help is reached, but if the house is kept (with only an assumed value), together with fees owing and possible interest, calculations will be complicated.
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