Selling parents house to pay for care

AdrianC

Rambosmum wrote: »

Does your fathers LA allow for a charge to be placed on the property until after death?

Very unlikely, given that he lived there alone and is clearly not returning.

Out,_Vile_Jelly

Sell the house and focus your energy on spending as much time as possible with your dad.

The house has kept your dad warm and dry for years, now it's paying for him to end his days in comfort and security. It's just a tool to be utilised.

Wurly

Firstly many thanks for taking time to reply.
You have certainly put me off renting out the house. I don't think it meet todays standards and I certainly don't want the hassle of bad tenants. I threw that idea here because we have already discussed the possibility but were not fully aware of the major problems.
Dad is 97 and doing pretty good but mobility is the issue. We are happy with the home and he's being looked after well. He could live for another 6 years or more (and probably out live me).
One thing I want say is about accusation of 'protecting our investment'. When my father bought his house (ex council house with full discount),he used a large part of his pension to do so and one of those reasons was to 'hand it down' to me and my brother. He could have had holidays instead. In some ways I wished my parents had.
I tried to discuss the possibilities of signing the house over but...lets just say, it wasn't!! My father also paid around £20K towards the care of my mother before she passed away 10years ago.
So please don't let this thread turn into one of judgement...we are were we are.
Me and my brother both have PoA. Savings are around £27K with about £10K used towards Dads care in the last few years.
He now gets full Attendance Allowance (while he is self funded) and private pension and State pension.
Approx Figures: Care Home £41000 pa, state pension £7540, private pension £7716, AA is £4628. There is about £20K pa shortfall
The care home is applying for nursery care allowance, Social Services have called me about a date for an assessment. I presume this is for Continuing Health Care ?
Like I said, we have a bit of time, but not much. Renting I believe is a nonstarter, so selling is the only option, hence why we have almost emptied the house already.
I hope I've added enough relevant info.
I'm taking note of all replies. Thanks again

AdrianC

Wurly wrote: »

One thing I want say is about accusation of 'protecting our investment'. When my father bought his house (ex council house with full discount),he used a large part of his pension to do so and one of those reasons was to 'hand it down' to me and my brother. He could have had holidays instead. In some ways I wished my parents had.
I tried to discuss the possibilities of signing the house over but...lets just say, it wasn't!! My father also paid around £20K towards the care of my mother before she passed away 10years ago.
So please don't let this thread turn into one of judgement...we are were we are.

Great. So we're all on the same page - your father's assets are there to provide for his care.

Me and my brother both have PoA.

That's good. And it's all lodged with the various financial institutions, and they're happy talking to you?

Savings are around £27K

Approx Figures: Care Home £41000 pa, state pension £7540, private pension £7716, AA is £4628. There is about £20K pa shortfall

So you've got nearer to nine months before the other savings run out, and the money from the house is NEEDED.

Like I said, we have a bit of time, but not much. Renting I believe is a nonstarter, so selling is the only option, hence why we have almost emptied the house already.

Get any minor tickles done now to get it on the market asap, ready for people to start looking seriously in spring. Price it realistically, and you should easily get a sale completed by the time it's needed. Don't spend too much on getting it glossy - it's almost certainly not worth the time and effort, and is very unlikely to add more than it'll cost anyway. Let the "potential" blind the viewers who believe daytime TV...

Owain_Moneysaver

Spruce it up and sell it. It's amazing how even dated properties can look better (or at least, bigger) with magnolia walls and plain carpet. Don't redo kitchens and bathrooms, but make sure they're scrupulously clean and freshly painted.

If you can't do it yourself, pay someone to cut the grass and wash the windows occasionally while the house is empty. Probably about now is a good time to put some bedding plants in, or tubs, if the outside front needs freshening up.

You can hold out for 6 months on the market, and then 3 months for exchange and completion, before things get urgent, so no need to accept a rock bottom price.

Do not get a tenant - they could move in, stop paying rent, and it could take you that nine months to get them evicted through the courts and bailiffs, and in that time the property could be trashed (floors and radiators ripped out, etc).

Emotionally it's a lot easier getting the house cleared and sold now than it is dealing with it all in probate.

lisyloo

The care home is applying for nursery care allowance, Social Services have called me about a date for an assessment. I presume this is for Continuing Health Care ?

No they are not the same.
Continuing health care - If your fathers needs are primarily medical then he is entitled to free NHS care (pretty much as if he were in hospital). This is a right, but its very difficult to get as there is no money to pay for it, so even if it was the case that his primary needs were medical you'd have to fight tooth and nail to get his rights as there is a monetary motive not to pay this.

You mention mobility issues, so in the more likely case that his primary needs are personal (help with getting around, washing, dressing etc.) then he wouldn't qualify for CHC. However if he is in a nursing home rather than a residential home then there is an NHS contribution which is about £120 per week and it covers the "nursing" element of his care. If he's in a nursing home then there will be qualified nursing staff there so as well as the higher needs it's more expensive than residential care. I expect that the assement you've mentioned is to asses whether he qualifies for the nursing care allowance.

xylophone

Are you sure YOUR FATHER wants to be a landlord? Not you, him. It's his house, after all. His legal responsibility

This is indeed the case- when I asked the OP whether he wished to be a landlord it was because if he went down the path of renting out the property, he would be saddled with the work, worry and responsibility.

With regard to the sale of the property, my relative had Enduring PoA and and was using it at the time of the sale of the house.

However, his donor had full capacity and had recovered from a broken right wrist at the date of exchange/ completion and was able to sign all the necessary papers (which curiously enough the conveyancing solicitor (also the family solicitor who had drawn up the EPoA years before) did request!

Mojisola

Wurly wrote: »

I had a pretty good handle on finances so his savings were not being drained too quickly, but now the care bill is frightening.

I reckon' there is enough money to last about 6 months and then house will have to be sold.

So with that amount of time, i'm hoping to get a plan together so we aren't forced into selling it quickly and can hold out for a good selling price.

There doesn't need to be any pressure to sell quickly.

Talk to the council about a deferred payment scheme now. The council will pay up to their set level with the difference coming from your father's funds.

The council will be paid back when the house is sold.

Don't let the council tell you that you have a sign a third-party top-up contract - your father is self-funding and can pay the difference out of his capital.

xylophone

The care home is applying for nursery care allowance, Social Services have called me about a date for an assessment. I presume this is for Continuing Health Care ?

https://www.ageuk.org.uk/information-advice/health-wellbeing/health-services/nhs-continuing-healthcare/

https://www.nhs.uk/chq/Pages/what-is-nhs-funded-nursing-care.aspx

Rambosmum

AdrianC wrote: »

Very unlikely, given that he lived there alone and is clearly not returning.

The local authority I work for (in adult Social Care) does, hence why I ask.