Shared ownership and savings

rgsoton

H there
Hopefully i'm posting in the right forum...
My parents need to move from their owned 3 bed bungalow due to increased needs. We have briefly looked at "extra care" in particular a project where they just so happen to run shared ownership schemes. We're not worried so much about shared ownership but more the extra care element. So they sell their bungalow for say £250k. I assume at some point the LA would then undertake a financial assessment to establish their savings and their contribution towards the "extra care". So lets say the shared ownership is £100k initially (75%) they would have say £150k savings. Does this mean that they would pay for ALL the care element? Also generally do people keep their money in property in these situations? If so they may be better off moving to a "Mcarthy and Stone" project and buy outright?? Anyway all related thoughts are very welcome. Thanks.

tyllwyd

I've never looked at these extra care schemes, but you have to assume that the local authority assessment will be a blunt instrument, so whatever money they have in the bank (etc) will be treated as their savings. It might be worth making sure that they hold their savings separately, so that if there is any assessment and as things change in the future it is clear what money belongs to what parent.


If your parents are going to need care, I think it is probably safe to say that financially the best option is to keep their money in their family home (or buy an equivalent) so that it is disregarded.


You haven't said why your parents are moving. If they are already in a bungalow, would it be an option for them to stay there with additional care visits?

rgsoton

Your time is appreciated, thanks.

The idea of separate bank accounts is a good one. Do you think it might be worth them getting an IFA throughout this process?

They are moving because their care needs can no longer be met in their bungalow.

Keeping their money in property I can see now is the most sensible option for them rather than keeping them in savings, so thanks for confirming that.

The challenge for them is (I believe) places like McArthy and Stone don't supply the level of care that my parents need. However they can afford their properties (plus more of the capital would THEN be in the property versus shared ownership. Maybe an option would be McArthy and Stone and then get a care package through the LA?

Thanks again.