Hi all, I'm new here. I found this page when searching the net for help. Apologies that this is so long, but it's a bit complex.
Both my parents have dementia and both went to live in (different) care homes within a few months of each other 2 and a half years ago. I am a COP Deputy for my dad only. This is because the title deed for their house is in his name only, so when financial assessments were first done the house was considered to be his, so with his pensions and savings he has to self-fund. Mum has less than £23,000 savings, so she is funded by the Local Authority so there was no need to apply to COP.
The house has never been registered with the Land Registry. Dad bought the house in 1967 and paid the mortgage and bills, as mum wasn't working (she later worked part time only). It is in a bad state now, but is probably worth £160,000.
Just as I was getting the COP authority in 2016 my parents social worker asked to see what documents I had relating to the family home. I was having chemo at the time, didn't feel great, and the social worker had been helpful, so I just gave her the file I have with all the house documents in. One document was a single page relating to a loan taken out 20 years after the house was bought - at the top of the page is says it is a "Legal Charge", has the house address on and is signed by both mum and dad (I believe this is similar to a mortgage). From the timing I think this was probably so my dad could buy a new car. There was also a PPI-type insurance policy taken out solely by my dad so that if he was made unemployed the loan would be paid off - no mention of mum paying it. The kindly social worker asked if she could copy some documents, which I was happy to do because I didn't know what that document was, but thought everything was fine.
Lo and behold I got a letter from the Local Authority saying this Legal Charge meant my mum has a 50% beneficial interest in the house, taking her over the savings threshold so she is now responsible for paying her care home fees, back dated. She has arrears of £34,000, increasing by £2000 per month. Dads outstanding fees are £32,000 (these were due to be paid when I sold the house).
I got legal advice, my solicitor told the LA their decision was incorrect as the deed is in dads name; that I had got COP based on dad being sole owner and that were dad to die the Inheritance Tax documents would state he was the sole owner - but because the loan document is headed Legal Charge, and mum signed it, she failed to get them to change their minds. BTW, it took them OVER A YEAR to come to this decision!
My solicitor left the practice and her colleague is basically saying the council are probably right. She can only advise that I get her to instruct a barrister to litigate against the council over the legality of the Legal Charge - a process that will end up in court and will cost many thousands of pounds, but that may fail also.
I am so fed up with everything that I'm thinking about leaving it there, but even accepting the LA's decision means I now have to apply to COP for Deputyship for my Mum, deal with the Land Registry and then sell the house. Not to mention there will have to be changes made with Dads COP, because the information I supplied initially will have to be changed, based solely on the LA's solicitors decision.
So, do you all think this one loan taken out in 1986 means my mum basically owns 50% of the house? Could it be that I should argue that she does have a beneficial interest in the property but that it shouldn't be 50%?
I'm not sure I could face a court battle with the council, especially if my cancer returns, so expect I'll just give in now and pay them what they want.
Does anyone have an opinion that differs to the Council?
Many thanks in advance,
Susan
Both my parents have dementia and both went to live in (different) care homes within a few months of each other 2 and a half years ago. I am a COP Deputy for my dad only. This is because the title deed for their house is in his name only, so when financial assessments were first done the house was considered to be his, so with his pensions and savings he has to self-fund. Mum has less than £23,000 savings, so she is funded by the Local Authority so there was no need to apply to COP.
The house has never been registered with the Land Registry. Dad bought the house in 1967 and paid the mortgage and bills, as mum wasn't working (she later worked part time only). It is in a bad state now, but is probably worth £160,000.
Just as I was getting the COP authority in 2016 my parents social worker asked to see what documents I had relating to the family home. I was having chemo at the time, didn't feel great, and the social worker had been helpful, so I just gave her the file I have with all the house documents in. One document was a single page relating to a loan taken out 20 years after the house was bought - at the top of the page is says it is a "Legal Charge", has the house address on and is signed by both mum and dad (I believe this is similar to a mortgage). From the timing I think this was probably so my dad could buy a new car. There was also a PPI-type insurance policy taken out solely by my dad so that if he was made unemployed the loan would be paid off - no mention of mum paying it. The kindly social worker asked if she could copy some documents, which I was happy to do because I didn't know what that document was, but thought everything was fine.
Lo and behold I got a letter from the Local Authority saying this Legal Charge meant my mum has a 50% beneficial interest in the house, taking her over the savings threshold so she is now responsible for paying her care home fees, back dated. She has arrears of £34,000, increasing by £2000 per month. Dads outstanding fees are £32,000 (these were due to be paid when I sold the house).
I got legal advice, my solicitor told the LA their decision was incorrect as the deed is in dads name; that I had got COP based on dad being sole owner and that were dad to die the Inheritance Tax documents would state he was the sole owner - but because the loan document is headed Legal Charge, and mum signed it, she failed to get them to change their minds. BTW, it took them OVER A YEAR to come to this decision!
My solicitor left the practice and her colleague is basically saying the council are probably right. She can only advise that I get her to instruct a barrister to litigate against the council over the legality of the Legal Charge - a process that will end up in court and will cost many thousands of pounds, but that may fail also.
I am so fed up with everything that I'm thinking about leaving it there, but even accepting the LA's decision means I now have to apply to COP for Deputyship for my Mum, deal with the Land Registry and then sell the house. Not to mention there will have to be changes made with Dads COP, because the information I supplied initially will have to be changed, based solely on the LA's solicitors decision.
So, do you all think this one loan taken out in 1986 means my mum basically owns 50% of the house? Could it be that I should argue that she does have a beneficial interest in the property but that it shouldn't be 50%?
I'm not sure I could face a court battle with the council, especially if my cancer returns, so expect I'll just give in now and pay them what they want.
Does anyone have an opinion that differs to the Council?
Many thanks in advance,
Susan