Equity release and dementia 28 April 2022 at 9:23PM in Over 50s MoneySaving 5 replies 333 views

katdalou

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?

Browntoa

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

katdalou

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

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 .  

johntugwell

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

If she is resident in matrimonial home, I do not believe ex partner cannot force a sale(?)