Care Costs if a Tennant in Common?

JACKAL3278

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May 16, 2024
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Both my parents suffer from Dementia/Alzheimers over the last 4 years and I still managed to keep them at home. The home is owned by them at 25% each as they gifted me years ago 50%. I believe that this is called Tenants in common and the land registry was informed by their solicitor at that time.
Sadly my mum passed away this week. In her will she leaves me her last 25%, so I now own 75%. If my dad did go into a home Can the council;
1. Take the house into account?
2. Take just his % of the house into account?
3. Force me to sell it to pay for his care?
 

SkyeD

Registered User
Oct 3, 2022
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Hi there @JACKAL3278
My dad died seven weeks before mum had to go into a care home. Their house was 50/50 Tenants in Common. When the local authority did the financial assessment, they took into account 50% of the total value of the house.
If you live in the house and are over 60, then the financial assessment may disregard the house anyway - I'm not too sure of the ins and outs of this because it wasn't applicable to me and my parents. I'm sure that someone more knowledgeable will come along and let you know.
S x
 

1c@tfamily

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May 17, 2024
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My condolences on your loss. I'm in a similar situation with dad getting nearer to requiring care and have exactly the same questions as you. My sister and I are tennants in common with him after inheriting Mum's share so we have 25:25:50.

I am happy to pay for advice but don't even know who covers this sort of thing!
 

nitram

Registered User
Apr 6, 2011
30,848
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Bury
@JACKAL3278
The LA will include 25% of the house value in any financial assessment ultimately trying to force a sale when other assets have been used for care,

CRAG which was replaced in 2015 by the Care Act 2014, contained
2.3 The value of any asset, other than cash, shall be the amount which would have been realised had the asset been sold at the time of transfer on the open market by a willing seller. The value should take into account any debts secured on the asset and a reasonable amount in respect of the expenses of sale (10% as in the Assessment Regulations, see 6.011).
In most cases this would obviously be low, what value would an estate agent put on the house?

This statement is missing in CA2014, there have been rumours of legal challenges of LAs including the full value of a share rather than open market value, I've not seen anything definite.
 

Chizz

Registered User
Jan 10, 2023
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Kent
@JACKAL3278
The LA will include 25% of the house value in any financial assessment ultimately trying to force a sale when other assets have been used for care,

CRAG which was replaced in 2015 by the Care Act 2014, contained
2.3 The value of any asset, other than cash, shall be the amount which would have been realised had the asset been sold at the time of transfer on the open market by a willing seller. The value should take into account any debts secured on the asset and a reasonable amount in respect of the expenses of sale (10% as in the Assessment Regulations, see 6.011).
In most cases this would obviously be low, what value would an estate agent put on the house?

This statement is missing in CA2014, there have been rumours of legal challenges of LAs including the full value of a share rather than open market value, I've not seen anything definite.
Yes @nitram but in my opinion, there is no open market for minority interests in houses, and thus the value of 25% share of a house on the open market is in the opinion of most estate agents and solicitors ZERO, because no person would buy 25% (or any minority interest) of a stranger's house - or, at least, that is the usual argument put to the LA.
 

nitram

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Apr 6, 2011
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Bury
the value of 25% share of a house on the open market is in the opinion of most estate agents and solicitors ZERO, because no person would buy 25% (or any minority interest) of a stranger's house - or, at least, that is the usual argument put to the LA.
Agree, unfortunately CA2014 removed the CRAG valuation leaving the LA free to argue.
I keep looking for a case where the LA has lost or a decision either way made by court without success.
Putting the share up for sale to release cash for the LA would be an interesting ploy.