Equity Release for Centenarians!

moneyfinder

For Ms_Chocaholic - yes all benefits have been claimed, including Attendance Allowance, and as I wrote previously- 'I appealed against the Council assessments, 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."

moneyfinder

As requested, here's some results from my search for Equity Release to fund the at-home live-in care for Mum, aged 100, using her property as equity, which would be administered by my brother and I using an Enduring Power of Attorney drawn up in 1997. After initial equiries with several financial advisors, many requiring large fees of up to £1500 just to make an application, non-refundable, and no guarantee of acceptance, I eventually managed to speak directly with Aviva, the only likely provider. Whilst Mum is perfectly 'compus-mentus', she suffers from anxiety and short-term memory loss, and our aim is to set up a scheme without needing to refer to her, as the stress and worry could have disastrous consequences. Over several phone calls, I explained our request, and the authority of the EPA, a type not issued since about 2005, having been replaced with Lasting Power of Attorney which has different criteria and authorities. Our EPA is still current.

Outcome: Aviva willing to consider the scheme, but would insist that the EPA is registered with the Office of the Public Guardian, costing £421 and a delay of around 6-8weeks, + a letter/statement from doctor to the effect that Mum would not have the capacity to agree/disagree with the procedure - doubtful that would be forthcoming, given her condition. It would be her capacity and understanding that would drive the inevitible worry and stress!!! So…. a stalemate at present , whilst I try and find another solution. Aviva would charge no advice fee, arrangement fee, or valuation fee - only costs would be legal fees, estimated around £750, so that aspect of their offer was very acceptable!

Hope all this might help someone.

Bobziz

Why £421 to register the EPA ? This suggests £92 https://www.gov.uk/enduring-power-attorney-duties/register-an-enduring-power-of-attorney

The letter requirement seems strange as I believe you can register and use an EPA to support the donor to make a decision, in fact that's one of the primary duties of an attorney.

moneyfinder

Thanks for the fee correction, Bobziz, you're correct at £92. I was quoting the Court application fees I was pointed to by an adviser, which apply to applications to OBJECT to registration of an EPA!

I repeatedly made the point to Aviva that registering the EPA should negate the necessity to provide a supporting letter, and eventually they relented to the extent that they MAY consider it unnecessary if and when we got to that stage! In fact, the duties of the attorney and the terms of the EPA should make even the registering unnecessary, but the company insist upon it as part of their compliance procedures.

moneyfinder

Additionally, the registration of the EPA would take '8-10weeks', and not the 6-8 weeks quoted for Court applications.

Bobziz

You may get lucky and recieve it sooner, but the OPG must wait 35 days for any objections, so 5-6 weeks is realistically the quickest you can expect. LPAs are taking even longer.