Equity Release for Centenarians!

moneyfinder

Thanks Marcon - I appealed against the Council assessment, but they wouldn't budge. Additionally I'm waiting for a verdict from the Ombudsman regarding the amount of DRE's allowed, but in reality both those amounts, totalling £215pw, are insignificant compared to the live-in care charges of £1600pw. Age Uk and Age Concern have suggested the schemes and providers I have looked at without result, and advised to contact a financial advisor, which I know I will have to do ultimately, but I'd like to do that from an informed position. I'll have a look at Solla - thanks for that.

Bobziz

https://forums.moneysavingexpert.com/discussion/comment/81904938#Comment_81904938

The below suggests that the lump sum @Macron mentions may be as low as £10k, so you might pay the care company two months in advance such that your mum has no savings to speak of. You may even get a slight discount on the care bill

https://www.aviva.co.uk/retirement/equity-release/equity-release-eligibility/

moneyfinder

Hi Bobziz - yes, £10k then drawdown, as per Aviva schemes, should work, although a similar situation with Surrey County Council ruled against it. I'm waiting for confirmation from our local CC if they'll accept or not.

My doubts regarding Aviva, from their advisor notes, include:

Who is the Lifestyle Flexible Advantage not designed to support?  A lifetime mortgage is designed to last until the plan holder either passes away or permanently leaves the property due to the need for long-term care.

It is not designed:  To be used for short term lending and could incur an early repayment charge if repaid voluntarily 

Marcon

The below suggests that the lump sum @Macron mentions may be as low as £10k, so you might pay the care company two months in advance such that your mum has no savings to speak of.

OP would need to check with the local authority whether the cash reserve fund would be counted as capital - and I understand from friends who have recently been through this loop that they were told it is counted as capital, on the basis it is 'readily accessible on demand'.

I thought pensions took the prize for complexity, but care costs and the benefits system…

Marcon

I thought this might be helpful: https://www.moneyrelease.co.uk/Equity-Release-Age-Limits/#:~:text=If%20you%20are%20a%20homeowner,one%20applicant%20is%20too%20young.

It suggests there are two providers who might be in the market for someone of your mum's age - possibly 3 depending on when the one with an upper limit of 100 imposes that limit (ie on reaching the 100 birthday, or the 101 birthday).

I'm conscious that you asked for experience rather than theory, but I'm not sure anyone on this board is going to have the former. I wonder if it might be better to move this thread to https://forums.moneysavingexpert.com/categories/mortgages-endowments

moneyfinder

Thanks, Marcon, for all your input. I'll have a look at both these links and consider moving the thread if it looks hopeful. I realise it was a long shot looking for someone with similar experience and positive outcome, as I imagine that if/once they have achieved their goal, they no longer need to refer to the forums! Still keeping my fingers crossed, and hoping for Aviva and local CC input tomorrow/very soon.

LHW99

If you are successful (and have time) please update the thread, as it may help someone else in the future.

Marcon

To add one final nugget from the friends who've been through this - and I'm sorry to sound like a merchant of doom… Be aware that if your mother takes out some form of equity release, a charge is put on her house by the provider, and she later needs to go into residential care while that charge is still extant, the chances of getting the local authority to enter into a deferred payment agreement for the care home fees are apparently 'slender to nil' if they won't have a first charge over a home.

Ms_Chocaholic

Is your mum claiming all benefits she is entitled to, thinking of Attendance Allowance specifically.

moneyfinder

LiveMore Lifetime Mortgages - one of the 2 providers listed as -'no upper age limit'; on their website it says "It's available from age 55 up to the age of 90", and "Drawdown:You can access your drawdown facility 6 months after your mortgage completes. " so, not hopeful.

Fingers crossed for Aviva………..