Equity release and dementia

Would a individual with a diagnosis of Alzheimer’s dementia be able/eligible to do equity release to release funds from their mortgage free home, in order to enable them to stay living in their home whilst they are still able and safe to do so?

Comments

  • Browntoa
    Browntoa Posts: 49,296 Forumite
    Name Dropper Photogenic First Post First Anniversary
    Does someone have an lpa in place to manage her affairs ?

    Otherwise she may need a solicitor to agree she has mental capacity to make decisions
    Ex forum ambassador

    Long term forum member
  • Yes her offspring are LPA and a solicitor has previously deemed her as not having mental capacity, but she is currently still safe to live in her own home with carers visiting in accordance with her care plan. She needs to release some money in order to buy out her expartner and thus enable her to stay living in the home, which is in her best interest as oppose to selling and attempting to move, given her Alzheimer’s. Would she be able to do equity release to enable this? Would the Alzheimer’s diagnosis mean no finance company would entertain? 
  • I_Love_comps
    I_Love_comps Posts: 2,293 Senior Ambassador
    First Anniversary Photogenic I'm a Volunteer Ambassador Name Dropper
    If I were you I would think carefully. If you do equity release it can mean the person loses out on benefits,   Also if the person's dementia gets worse, which is inevitable with dementia, then that will decrease the capital of the property, if the person needs to go into a care/nursing home.

    Search some equity companies and read there t&C's .  

    I am a Senior Ambassador on the Competitions Time Board and the Old Style MoneySaving Board.
    If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators.  Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.



    My Diary Link My Frugal Year 2023 My Frugal Year 2023 — MoneySavingExpert Forum

    My Challenges
    Make £2023 in 2023. £3.16/£2023 Make £2023 in 2023 — MoneySavingExpert Forum
    Compers Challenge 2023 0 Wins Compers challenge 2023! — MoneySavingExpert Forum
                               

                                                                                                                                  
  • Would downsizing mean taking on a smaller amount of debt (or none at all) and make outgoings more manageable? House prices are buoyant.

    You can release equity under an LPA, as long as they are for the direct benefit of the donor.The lender will require sight of the LPA and a letter from a healthcare professional.

    Ensure all benefits are being claimed, including PIP or Attendance Allowance, check eligibility on entitled.to

    Request a Continuing Care assessment from your local authority before releasing equity, to ensure you don't cross a savings threshold that would reduce any support.

    Releasing equity will reduce the estate and capital available if the borrower moves into permanent care, but the erosion is relative to life expectancy.

    You'd be looking at a Lifetime Mortgage, which are now transparent and heavily regulated, unlike the previous plans which were not fit for purpose.

    Hope this helps.
  • missile
    missile Posts: 11,684 Forumite
    Name Dropper Photogenic First Post Combo Breaker
    If she is resident in matrimonial home, I do not believe ex partner cannot force a sale(?)
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
Meet your Ambassadors

Categories

  • All Categories
  • 342.9K Banking & Borrowing
  • 250K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235K Work, Benefits & Business
  • 607.6K Mortgages, Homes & Bills
  • 172.9K Life & Family
  • 247.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards