You could put your property up for sale and use the proceeds to fund your care if you’re:
This approach can give you the benefit of releasing a large sum of money. You can then use this to cover your future care costs.
You should always take financial advice when you’re planning on selling your home to release funds for paying for care. Taking financial advice can help make sure the proceeds can cover your care fees for the rest of your life.
Selling a house or other property can be a lengthy process. If you need to move into a care home quickly you can get some help from your local authority. They can cover your care costs under a Deferred Payment Agreement, until the sale is complete.
If you get any means-tested benefits, they may be affected by you selling your home. This is because having a large amount of money in savings can mean you’re no longer eligible for certain benefits.
If you want home care instead of moving to a care home, you could consider downsizing. This can raise a lump sum that you can use to pay your future home care fees.
Alternatively you could consider a dedicated ‘extra care’ residential development. This type of housing is provided in a secure setting and offers residents help and care when it’s needed.
If you’re moving into a care home, or nursing home, selling can release funds to buy a rental property. This can provide extra income to help with care fees and allow you to leave a legacy for loved ones.
If you’re considering downsizing or selling, you should consider the costs of moving. And if you’re considering purchasing a rental property, think about:
Using a reliable agent to let your property can help relieve you or your family of some of the burden of managing a rental property.
You may be able to get a Deferred Payment Agreement from your local authority. You can only do this if there’s nobody else living in the property.
Under this scheme, the local authority agrees to help you with your care fees. The fees are repaid when your property is eventually sold.
If you have to sell your property to help pay for your care fees, you can get some breathing space. You can do this by accessing some local authority support called ‘the 12-week property disregard’.
With ‘12-week property disregard’, your local authority pays your care home fees for up to 12 weeks. They’ll only do this if the value of your other assets falls below the upper-assets limit for state care funding.
This 12 weeks can give you time to sell your property. If your property still isn’t sold after 12 weeks, your local authority may offer you a Deferred Payment Agreement. Under this scheme, your local authority will pay your care fees until your property is sold.
You may already have a trusted family solicitor and accountant. It’s also a good idea to take advice from a financial adviser who specialises in later-life planning.
If you do need a solicitor, you can contact Solicitors for the Elderly. This independent, national network provides specialist legal advice for elderly and vulnerable people, their families and carers.
Use our directory of specialist care fees advisers to find expert advice in your area.