Deferred Payment Agreement

[Kdickson3012]

Hi

My mum is diagnosed at 57 with progressive Alzheimer’s and looking like she may need a care home due to her rapid decline. Whilst I dont know for definite due to waiting to see how meds kick in I would like to know if any has used a DPA before. I am really reluctant and upset to sell the family home between now and a year and would like some advice. I would like to rent it to cover what I can on top of the DPA but would like to see people’s opinion or advice on them thanks!

 

[Grannie G]

Hello @Kdickson3012

If your mother is the sole occupier of her house it is only historically the `family` home. You will be able to rent it on her behalf if the incoming rent is enough to pay care home fees.

Your mother is young which is a tragedy in itself and obviously will not be getting a state pension yet, which is usually taken into account when paying for a care home.

Social Services are the people to ask about deferred payments. Also AgeUK

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs38_property_and_paying_for_residential_care_fcs.pdf

Deferred Payment Agreements, 2021-22

This publication contains data taken from the Deferred Payment Agreements (DPA) return to provide information regarding the number and associated £ value of Adult Social Care Deferred Payment Agreements in England.

www.gov.uk

 

[Kdickson3012]

Hi

Yes she is sole occupier and it is our family home of almost 25 years, I feel I have a huge deal to think about at the moment and selling the house is not something I want to burden myself with when I would sooner rent it out and contribute the money to the care. I thought a DPA covered only 3 months but I am reading that is not the case, it can be indeed for many years if that is the choice.

 

[My Mum's Daughter]

Hi

Yes she is sole occupier and it is our family home of almost 25 years, I feel I have a huge deal to think about at the moment and selling the house is not something I want to burden myself with when I would sooner rent it out and contribute the money to the care. I thought a DPA covered only 3 months but I am reading that is not the case, it can be indeed for many years if that is the choice.

If you rent out the property, you are responsible for repairs and safety checks. Rental income is also taxable so that will also mean more work.

You also have to consider that at some point, even with the rental income, the money may run out which means that you'll have to evict the tenant.

Lots to think about.