What happens if House doesn't sell?

[SnowWhite]

Mum is in Care home and have just put house on market to pay her care home fees. she is now well below the £23,500 threshold and I have asked social services twice to come and assess her financial situation and they just say she's on the waiting list.

Her only income is pension, pension credit and attendance allowance.

Her house may sell, it may not. Who knows? Does anybody know what happens if it doesn't sell or doesn't sell for a long time?
Thanks.

 

[nitram]

Even if the house is up for sale you could try for a DPA
https://www.gov.uk/government/publi...rt-whats-changing#deferred-payment-agreements

Have a talk with the LA finance dept.

 

[cragmaid]

My late Mum's house was on the market for 2 years without selling. The Local Authority put a Deferred Payment Plan in place useing a lower than market value of £125K. The house was for sale originally at £164K we had one offer of £110K after 6 weeks and one of £124500. I had refused these offers as they were ridiculously low for a three bed semi in this area.
Eventually, through dint of circumstances my husband and I ended up having to buy the house to live in ourselves and the DPP was repayed.

 

[SnowWhite]

Thank you both. I was hoping not to do the Deferred Payments scheme.

What would happen, say, if Mum says she doesn't want to sell the house at all?

Just asking because my brother has been in to see her and told her she's daft to sell her house as "every year it will increase in value". He doesn't seem to grasp that she has to sell it in order to pay her care home fees.

She also said he said something to her which concerns me "we are having nothing to do with it and we are not signing anything either." I am Mums POA and I have just looked at her title deeds and got a print out from Land Registry (in case brother had somehow got his name on it) but its just her name.

I literally don't trust him an inch and we don't speak at all.

 

[nitram]

If he does not have POA and your mum is sole owner it's difficult to see what he could sign.

Whether or not your mum has capacity I think that, failing a sale, the LA will ultimately push for a DPA, they will consider it an asset and depending on your mum's assessed capacity will deal with either her or you.

The house will ultimately have to be sold to pay the LA, A DPA involves legal charges and interest.

 

[Kevinl]

In the first post you say she's on the waiting list for a financial assessment but I think the outcome will be fairly straightforward, she owns a house so her assets are the value of the house plus the sub £23k figure she has in cash so the LA won't do anything as she'll be self funding.
The house will continue to generate costs; insurance, standing charges for the utilities and the like will still need paying and there's the obvious security risk of an empty house from anything from burglars to squatters.
If your brother doesn't want to sell the house how's he proposing to pay for her care?
We've discussed renting out houses many times and the general feeling is that a months rental income pays for something around a weeks care so without other sources of income that's probably a none starter for many people.
If the houses doesn't sell then you may have to get a DPA or your mum will be out on the street, the LA may do a 12 week disregard but as she's already in care I'm not sure, I've only heard it mentioned when people go into care not are already in care.
Basically your brother need to get a reality check, if he thinks somehow the LA will pay and let here keep the house, well in short they won't.
K

 

[Onlyme]

Thinking about your brother not wanting to sign anything. Does he think because he will inherit it that he has a say in how it is sold/used? Often those that are due to inherit forget that the inheritance is not theirs until a will is read.

Unless he has seen a will from your father leaving half to you perhaps?

 

[arielsmelody]

Apart from the cost to set it up (which I think was about £200), if the house is on the market it's probably worth setting up a DPA because then you know that the care home fees are covered until the money from the house sale comes through and the DPA can be ended.

If your mum doesn't want to sell the house, that's her choice, but the local authority won't cover the care home fees so who will pay? If she's on pension credit, her monthly income won't be anywhere near enough to pay for the care home.

If you have a LPA you have to act in your mum's best interests, and that's going to mean making sure she has enough money available to live on.

 

[SnowWhite]

In the first post you say she's on the waiting list for a financial assessment but I think the outcome will be fairly straightforward, she owns a house so her assets are the value of the house plus the sub £23k figure she has in cash so the LA won't do anything as she'll be self funding.
The house will continue to generate costs; insurance, standing charges for the utilities and the like will still need paying and there's the obvious security risk of an empty house from anything from burglars to squatters.
If your brother doesn't want to sell the house how's he proposing to pay for her care?
We've discussed renting out houses many times and the general feeling is that a months rental income pays for something around a weeks care so without other sources of income that's probably a none starter for many people.
If the houses doesn't sell then you may have to get a DPA or your mum will be out on the street, the LA may do a 12 week disregard but as she's already in care I'm not sure, I've only heard it mentioned when people go into care not are already in care.
Basically your brother need to get a reality check, if he thinks somehow the LA will pay and let here keep the house, well in short they won't.
K

Thank you Kevin. I spoke to social services a while back and I'm just doing what they told me to do which is wait until her money gets below threshold and contact them again, which I've done twice. I'm sure you're right by the way.

 

[SnowWhite]

Thinking about your brother not wanting to sign anything. Does he think because he will inherit it that he has a say in how it is sold/used? Often those that are due to inherit forget that the inheritance is not theirs until a will is read.

Unless he has seen a will from your father leaving half to you perhaps?

I have Mums will and it's very straightforward. IF there's anything left it's split between her children.

He wants Mum to stay in her own home and NOT sell it despite her barely able to stand so she couldn't even make herself a cup of tea or some food. She doesn't want that as she scared as she's had repeated falls and gets anxious on her own. She says she is happy where she is and feels safe. I am therefore carrying out her wishes and have another viewing later today.

 

[SnowWhite]

If you find you are getting offers far, far below what you believe its worth, there are companies who will buy the house. Obviously it will be at a lower price than the estate agent who valued your house.
We are going through the process shortly and have been advised to tidy it up as much as possible, remove all the "old peoples" stuff and get it cleaned and painted throughout. Have yet to ask the OPG whether we can claim the cost of this from my PWD.

We haven't had any offers yet Smashy but it's an ex LA house in a nice location. There is a restriction on it as there are with all ex LA houses round here that it can only be sold to a person who has lived or worked in the area for 3 years.

 

[Kevinl]

I've always found Zoopla's estimates bang on where valuations are concerned

I haven't found it at all accurate or indeed any other of the sites like that. One valued a house I looked at £156k on the valuation part of the site, but the house is actually for sale on the same site for offers over £220k and is sold subject to contract.
It's better to look for comparable houses in the neighbourhood in a similar condition and see what they're going for.
People now seem a lot less willing to do a house up themselves so a lot that need work go to developers who pay a lot less than you used to be able to get for a house that needed work.
The BBC covered the story on the news this morning that house prices fell in the first quarter of 2017, the first time this has happened since 2012. Given that keeping the house empty is costing money I know what I'd do.
K

 

[Lets_Stop_Time]

My late Mum's house was on the market for 2 years without selling. The Local Authority put a Deferred Payment Plan in place useing a lower than market value of £125K. The house was for sale originally at £164K we had one offer of £110K after 6 weeks and one of £124500. I had refused these offers as they were ridiculously low for a three bed semi in this area.
Eventually, through dint of circumstances my husband and I ended up having to buy the house to live in ourselves and the DPP was repayed.

Hi, I know this was posted last year but hope you see and reply.
My mother in law just passed away and we have a deferred payment in place that they say needs paying within 90 days.
Did you wait until probate cleared then get a mortgage to buy the property?
We weren't sure if we would be allowed to get a mortgage and effectively buy the property even tho it will pass directly to us and brother in law

 

[jugglingmum]

Hi, I know this was posted last year but hope you see and reply.
My mother in law just passed away and we have a deferred payment in place that they say needs paying within 90 days.
Did you wait until probate cleared then get a mortgage to buy the property?
We weren't sure if we would be allowed to get a mortgage and effectively buy the property even tho it will pass directly to us and brother in law

cragmaid doesn't use TP anymore - she felt that as some time had passed since her mother had died it was appropriate to move on.

Someone else may pop along who knows the answer.

 

[Lets_Stop_Time]

cragmaid doesn't use TP anymore - she felt that as some time had passed since her mother had died it was appropriate to move on.

Someone else may pop along who knows the answer.

thank you

 

[Pete R]

Hi, I know this was posted last year but hope you see and reply.
My mother in law just passed away and we have a deferred payment in place that they say needs paying within 90 days.
Did you wait until probate cleared then get a mortgage to buy the property?
We weren't sure if we would be allowed to get a mortgage and effectively buy the property even tho it will pass directly to us and brother in law

The property will only pass to you when the debt is paid so you could start the ball rolling on a mortgage but I doubt a lender will complete till they see the charge gone.