Deferred Payment Agreement - need solicitor?

Discussion in 'Legal and financial issues' started by SkiSarah, Nov 25, 2018.

  1. SkiSarah

    SkiSarah Registered User

    Feb 12, 2018
    10
    Hi,
    My Dad is in late stage Alzheimers and in a care home. We are running out of money to pay his fees - we are now under the £23k and his house has been on the market for some months but no buyer as yet. I am in the process of setting up a Deferred Payment Agreement with the council for them to fund his care until the house is sold. I understand it's a loan, in effect, a mortgage on the property. I have just received a letter from the council (Oxfordshire) stating that I should appoint a solicitor to deal with this. Is that right? Why do I need a solicitor? I haven't budgeted for solicitors fees & at this rate I am going to run out of money to pay for Dad's care before the council stump up any cash. Do I need a solicitor or could I do this on my own?
    All advice gratefully received!
    Many thanks,
    Sarah.
     
  2. nellbelles

    nellbelles Volunteer Host

    Nov 6, 2008
    7,889
    leicester
  3. Louise7

    Louise7 Registered User

    Mar 25, 2016
    576
    Are the council insisting that a solicitor is used or just recommending it? I'm currently going through the same process, and am expecting a contract through from the council shortly. People entering a deferred payment need to be fully aware of what they are entering in to, and my Mum's council website recommends that legal advice is sought, but I haven't seen anything yet which states that a solicitor must be used. Council's seem to have their own way of doing things though.

    With regards to the money running out, once the council have agreed to a deferred payment you should let the care home know so that they can liaise directly with the council regarding future payment of fees.
     
  4. SkiSarah

    SkiSarah Registered User

    Feb 12, 2018
    10
    Thank you for your reply - they are just "suggesting" but the letter does come from the council's solicitor & the tone is "you must get a solicitor". I do see that the law says legal advice must be suggested - so maybe they're just covering themselves. I would be interested to hear from anyone else who has been through it.
    Thanks again,
    Sarah.
     
  5. SkiSarah

    SkiSarah Registered User

    Feb 12, 2018
    10
    Thank you - I may try that,
    Sarah.
     
  6. AD123

    AD123 Registered User

    Dec 4, 2012
    34
    We had a deferred payment agreement. They recommend you get legal advice as it is a legal document. With any legal document you are always advised to seek legal advice. We didn't use a solicitor. As long as you understand what you are signing and are happy to sign that's fine.
     
  7. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,593
    Salford
    It's a financial transaction, it's a bit like equity release in a way and it's always suggested you get independent financial advise before signing anything.
    The LA don't want you turning round in the future saying you weren't told something which might have swayed your opinion so to cover themselves they recommend you get professional advise. Whether a solicitor is best I don't know as not all solicitors are necessarily accountants and there's both a legal and a financial side to the contract you're entering into.
    basically you have to pay to cover their backsides, but there will be plenty of people out there who don't realise the implications of compound interest or that a DPA means the LA get paid back before anyone else as they have a charge on the house with the land registry.
    Could you get advise from the CAB so that you can say you've had independent advise?
    K
     
  8. SkiSarah

    SkiSarah Registered User

    Feb 12, 2018
    10
    Thank you - that is very reassuring - I will ask for the forms & then decide - I can always get a solicitor involved if I feel I need help.

    Thanks to everyone who responded - this forum is a godsend!

    Sarah.
     
  9. Sheila1

    Sheila1 Registered User

    Mar 8, 2015
    2
    Hi
    Mum went into a care home 3 1/2 years ago and the council advised setting up a deferred payment for her care fees, but once I had looked into this it would cost £500 to set up the deferred payment and 2.65% interest on all monies paid. As mum's POA and after discussion with my brother, we decided to use her savings and hope the house would be sold before the money ran out. Please check how much this will cost now as it will take a big chunk out of your loved ones money.
     
  10. SkiSarah

    SkiSarah Registered User

    Feb 12, 2018
    10
    Thank you
     
  11. Cazzita

    Cazzita Registered User

    May 12, 2018
    323
    It's all so unfair and a staggering amount of money :(
     

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