Care Fee Question - Jointly Owned Property With Mum

[Gmgohara]

Hello

I jointly own a property with my elderly mother. Has been Jointly Owned since initial purchase some 25 years ago (purchased under local authority right to buy scheme)

Mum currently lives on her own in the house but due to her dementia getting worse has been assessed as needing to now go into a Residential Care Home

I have not lived in Property since I moved out some 18 years ago.

How will the property be treated by the local authority as part of the care Home financial assessment ?

Depending where I look I either read of her stories of being forced to sell or other situations where her half of the house is deemed to have a negligible value has no one wants to buy half a house etc

Also, can anyone recommend a decent solicitor firm who have expertise in this area

Any advice and guidance appreciated

 

[jenniferpa]

Since the 2014 care act it is entirely likely that the la will take the position that her share of the house is available to pay for her care. If you were living there, it might be different, but not in this situation.

 

[Kevinl]

Hi Gmgohara, welcome top TP
This used to be covered by the CRAG regulations (link below), however these were replace by the 2014 Care Act on 1st April 2015 and no longer apply so ignore any references to them.
The CRAG regulations said;
7.019 Where an interest in a property is beneficially shared between relatives, the value of the resident's interest will be heavily influenced by the possibility of a market amongst his fellow beneficiaries. If no other relative is willing to buy the resident's interest, it is highly unlikely that any "outsider" would be willing to buy into the property unless the financial advantages far outweighed the risks and limitations involved. The value of the interest, even to a willing buyer, could in such circumstances effectively be nil. If the local authority is unsure about the resident's share, or their valuation is disputed by the resident, again a professional valuation should be obtained."
Essentially they admitted that a half share of a property could "effectively be nil" and this was used successfully at the time to get the house disregarded totally in the financial assessment.
There are still a number of firms advertising their services trying to use the same tactic but no such wording exists in the 2104 Care Act or the Mandatory Guidelines to it, the LA are told to use a valuation of the asset not to consider the market value as it is.
I suspect sometime in the future some brave soul will do a David and Goliath and take on a Local Authority and who knows, they might win? Until then the line the LA's are pushing is half the value as if it was free of the encumbrance of having a joint tenant.
As Jen says if you lived there it might make a difference but until a judge says differently current guidelines are to value the property alone not any side issues like shared ownership.
K

 

[brianr58]

Since the 2014 care act it is entirely likely that the la will take the position that her share of the house is available to pay for her care. If you were living there, it might be different, but not in this situation.

I do know of a situation near to me where a daughter who was widowed got early retirement in London and sold her house and went to live with her mother who had some disabilities but care was not on the cards at that point. The daughter had inherited her father's share of the property.
Sadly the mother got dementia and went down hill very quick and it was decided she needed care 7 months later,
The council did try to say the daughter should have anticipated care would be needed and the bungalow would have to be sold and the proceeds divided. The council legal department got involved.
As it happened the mother died before she left hospital so it never went to court but it would have been interesting to see what the verdict would have been.

 

[Louise7]

I have just started the process of selling my Mum's home and my LA sent me a comprehensive booklet last week regarding care home fees and property. With regards to jointly shared property it states that this has to be looked at on a case by case basis as the process is complicated and they can't just value the property and divide up the amount by the number of people who own a share in the property as they can't assume that the shares are equal.

In relation to valuing a share in a 'Right to buy' property it states "If you bought your council property under the 'right to buy' scheme the council may be able to take into account the discount you received on the property when working out beneficial interest. Each case is different and must be assessed individually. If you have a beneficial interest in a 'right to buy' property this will be valued by an independent valuer".

So I think the OP needs to speak to the relevant LA to establish how her Mum's share will be assessed/valued as the process for 'right to buy' properties differs from that relating to shared property which was not purchased under the 'right to buy' scheme. Hope this helps.

 

[brianr58]

I have just started the process of selling my Mum's home and my LA sent me a comprehensive booklet last week regarding care home fees and property. With regards to jointly shared property it states that this has to be looked at on a case by case basis as the process is complicated and they can't just value the property and divide up the amount by the number of people who own a share in the property as they can't assume that the shares are equal.

In relation to valuing a share in a 'Right to buy' property it states "If you bought your council property under the 'right to buy' scheme the council may be able to take into account the discount you received on the property when working out beneficial interest. Each case is different and must be assessed individually. If you have a beneficial interest in a 'right to buy' property this will be valued by an independent valuer".

So I think the OP needs to speak to the relevant LA to establish how her Mum's share will be assessed/valued as the process for 'right to buy' properties differs from that relating to shared property which was not purchased under the 'right to buy' scheme. Hope this helps.

I would not trust councils as far as I could throw them.
I made a complaint as I was advised by the Social worker the bungalow my step mother was living in would have to be sold to pay her care home fees. Mum had left me her half and Dad had left me his on condition my step mother could live in it until she entered care or death. I was the 100% owner as per the land certificate.
The response was it was only a suggestion. The social worker said I would definitely have to sell it as my step mother was married to Dad.
As it happens she died before leaving hospital.