Have the rules regarding having to sell your house to pay for care fees changed?

theDon876

I heard the rules regarding having to sell your house to pay for care home fees have or are changing but I think it's only in England. I'm in Scotland?

So a friends dad has moved into a care home and they have to sell house to pay for the fees. I heard today that the rules have changed or are in the process of changing so that you only have to use a certain amount from the house sale to pay for the care fees.

Can anyone confirm this and if its only in England. As I said I'm in Scotland.

elsien

No, it’s not that simple, even in England. 

The government announced proposals in September around a possible fees cap. However if it comes in it won’t be until October 2023, and it only covers the care element  not the “hotel” element. It also only includes the amount the person has paid, not any local authority contribution. 


https://www.google.co.uk/amp/s/www.thisismoney.co.uk/money/pensions/article-10248901/amp/Will-new-social-care-cap-stop-having-sell-home.html

But you are correct the policy is for England only.

Having said that, and being slightly pedantic, people only have to sell their previous homes if they can’t raise the money another way such as by renting it out or using other assets. 

Pennylane

elsien said:

No, it’s not that simple, even in England. 

The government announced proposals in September around a possible fees cap. However if it comes in it won’t be until October 2023, and it only covers the care element  not the “hotel” element. It also only includes the amount the person has paid, not any local authority contribution. 


https://www.google.co.uk/amp/s/www.thisismoney.co.uk/money/pensions/article-10248901/amp/Will-new-social-care-cap-stop-having-sell-home.html

But you are correct the policy is for England only.

Having said that, and being slightly pedantic, people only have to sell their previous homes if they can’t raise the money another way such as by renting it out or using other assets. 

Rents around here would not cover the weekly costs of a care home which are approx £1200 a week.  Factor in all the legal requirements and making sure the property is up to standard for renting out and it usually isn’t worth the bother.  

Then there’s emptying the property, storing the contents and possibly getting awful tenants.  I know somebody who did this and what was a nice little house looked like a herd of elephants had moved in! 

lisyloo

Agree that rental won’t cover care costs unless perhaps you have a mansion.
also anyone in a home won’t be able to carry out the duties of a landlord, so they’d need some form of help.
I was deputy for my MIL. That was hard enough without being a landlord as well.
for many people the logical thing will be to sell the property.
obviously there are exceptions, but if the property is now empty and the person is not going back (the vast majority wont) then they are better off without the property.
if a spouse lives there the property if disregarded.
the only issue is if younger family members are living there and that is something people should think about before they get to the stage of needed full time care.

mags21

Personal and nursing care is free in Scotland. This should reduce the weekly bill by about £280 currently.
https://www.gov.scot/news/more-help-with-free-personal-and-nursing-care/

Pennylane

lisyloo said:

Agree that rental won’t cover care costs unless perhaps you have a mansion.
also anyone in a home won’t be able to carry out the duties of a landlord, so they’d need some form of help.
I was deputy for my MIL. That was hard enough without being a landlord as well.
for many people the logical thing will be to sell the property.
obviously there are exceptions, but if the property is now empty and the person is not going back (the vast majority wont) then they are better off without the property.
if a spouse lives there the property if disregarded.
the only issue is if younger family members are living there and that is something people should think about before they get to the stage of needed full time care.

Then if there’s a garden you have to either pay a gardener or stipulate in the tenancy agreement that they must keep it in good order. There is a lot to think about renting out a house while your loved one is in a care home and a lot of expense.  

My Mum’s home was spotlessly clean but would have needed updating for younger tenants with more modern carpets, decor etc.  It also had a very large garden which would have put a lot of people off.