Proceeds of Sale re: Shared Ownership Property

[End Wits]

Hello,

My mother and I have 50% shared ownership of a house, which has a mortgage. Sadly my mother was diagnosed with Dementia in 2016, whereupon she went into permanent residential care in October 2017. I was informed verbally by the Council, that I could take all the proceeds of sale of the shared house i.e. my share and my mother's share and use the monies to purchase another property, so long as the new property was in joint names of ownership. The Council have always said that they are disregarding the house re: Financial Assessment. I have been advised to obtain written confirmation from the Council rather than accept a verbal guide. However despite my protracted requests to the Council to confirm this option, no-one has responded to me. Therefore I wondered if anyone might be able to shed light on this situation from this forum?

Many thanks.

 

[nitram]

However despite my protracted requests to the Council to confirm this option, no-one has responded to me.

Email the CEO of the council, briefly outline situation, and request a response.

 

[Kevinl]

Hi @End Wits, welcome to TP
The Statutory Guidance Notes to the 2014 Care Act, Annex E, Section 10 gives the following example:
"Example of where deprivation has not occurred
Max has moved into a care home and has a 50% interest in a property that continues to be occupied by his civil partner, David. The value of the property is disregarded whilst David lives there, but he decides to move to a smaller property that he can better manage and so sells their shared home to fund this.
At the time the property is sold, Max’s 50% share of the proceeds could be taken into account in the financial assessment, but, in order to ensure that David is able to purchase the smaller property, Max makes part of his share of the proceeds from the sale available.
In such circumstance, it would not be reasonable to treat Max as having deprived himself of capital in order to reduce his care home charges." (link to the source below).
So in principle a spouse or partner can use some or all of the person's money but the example says "partner" so whether that extends to a relative isn't stated.
You don't say if the house is also your home or if you intend to buy an investment property and why the LA are disregarding the property, presumably you live there and are over 60?
I know that my LA are happy for me to sells the house and downsize and the house has to be jointly owned as it is now, half of any equity released though would be counted as my wife's and would figure in a financial assessment. As I don't need to release any equity I intend to downsize but to a "posher" part of town to avoid releasing any equity.
As nitram says though I'd still want to get it in writing just to be on the safe side.
K
https://www.gov.uk/government/publi...ce/care-and-support-statutory-guidance#AnnexE