Selling house to pay for care?

AdrianC

deannatrois wrote: »

You do realise that £590 per month care costs sounds very very low? Its not much more than renting a property, and yet will also need to allow for staffing costs, food, heating etc. I am afraid it will probably cost more.

I think they mean the £590/mo would be the rental income (before tax, expenses etc) - the care cost is indeed likely to be more than that per week.

Pixie5740

gettingtheresometime wrote: »

One other issue is that should you rent from her, when your gran eventually dies, the house will form part of her estate which could result in you becoming homeless.

AdrianC wrote: »

Why would that be?

Possibly because the OP wouldn't be the sole beneficiary of the grandmother's estate.

AdrianC

Even then, the house being part of her estate would not result in notice being given.

The beneficiaries (presumably the OP's parent and that parent's sibling, the deceased's children) being unable to agree between them to continue to let the property to the OP might, but that's a separate question.

Cakeguts

I think your grandmother may be hoping that she can go back and visit her old home from the care home but of course if someone else lives there even you it will no longer be her home.



In the long run there is really no difference between selling the house and someone else living there or you living there it still won't be your grandmother's home anymore it will be the home of someone else. Your grandmother's new home will be the carehome.



When you sell a house and move what you get for it pays towards the next home which is exactly what your grandmother needs to do. Sell the house she owns at the moment and pay for her next home the carehome out of the proceeds.

martin1959

Hang on, don’t do anything hasty...

I can tell you exactly what up you can look at.

Does anyone have Lasting Power of Attorney (financial) for her?

When she goes into a home, as long as Social Services agree, she will qualify for a 12 week disregard, where her home is not taken into account. At the end of this, she (or whoever has POA) can ask for a deferred payment agreement, where the Council puts a charge against the property, and she can rent it out to you (for a market rent).

Whatever the home fees are, say £3000 per month, subtract her pension income, say £1200 per month, and rent (she may need to pay tax on this) say £600 per month..... which leaves £1200 per month charged against the property. This will mount up until it reaches what the Council feel the property is worth, when they could enforce a sale to repay their charge.

Obviously, in the meantime, at some point, she could sell you the property at full market value (otherwise deprivation of assets) when you can get a mortgage.

If she has a POA in place, and if a family member wants to buy the property, then you have to apply to the Court of Protection, supply three valuations, pay £400 fee, to get a court order to allow the sale (takes about six months)

Mojisola

martin1959 wrote: »

At the end of this, she (or whoever has POA) can ask for a deferred payment agreement, where the Council puts a charge against the property, and she can rent it out to you (for a market rent).

Some councils will only offer a deferred payment scheme if the house is up for sale.

martin1959

I don’t think that is the case. There was a Govt initiative to enable those going into care to retain their homes, all be it with a charge against it.

This is why interest rates Councils can charge are capped.

I would be surprised if any Council refuses, and if they did, a complaint to the ombudsman would be justified.

Saying that, the valuation of the property has to be great enough for a DPA to be arranged.

G_M

The amount owed to the council will mount up.

When, eventually, she dies, the council will want that amount paid back, and from what's been said the only way that could happen is for the Executors of the Estate to sell the property and use the proceeds to pay the council.

Since there would be a Charge registered, no sale ot transfer of ownership would be possible without the Charge being removed.

Of course, by then the family may be in a position to pay the debt themselves and keep the property.