LA funding, self-funding and property sales

[InnerGeek]

How strict on timescales are LAs regarding funding where a property is in the throes of being sold? Can they insist on taking the house value into account from October when it's not yet sold?

Dad left his home (owned outright) to move near me for care reasons in January. The LA have said the value of his home wouldn't be taken into account until October this year, which is creeping up fast. We needed to spend quite a bit of time doing the house up as it was quite literally a building site in some parts but have got a buyer (my mum). Trouble is, the housing market is very slow in Wales and my mum is struggling to get her own buyer for her present house.

Being self-funded will be both a blessing and a curse - I could really do without the extra work right now, but it would be worth it to be able to move to an agency I can trust. I'd love to have the time and energy to employ carers directly but I can't see that's ever going to happen!

 

[Kevinl]

I assume we're talking about the 12 week disregard here. For the first 12 weeks in a home their house is not counted as an asset towards her care costs.
After 12 weeks they have to pay the fees, you could ask the LA to do a deferred payment so that they effectively lend her the money, secured on the house and get it back when the house is sold. There may be a set up cost or interest charged LA's vary.
I doubt the LA will be flexible, someone has to pay for care and the 12 week disregard is of itself a bit of a gift, 12 weeks care for free can be a lot of money.
As they are self funding is the issue that the house pushes them over the level at which the LA funds and you want it disregarded so the LA pay the care home costs, otherwise why would it matter if the house is sold or not?
K

 

[cragmaid]

You are talking of an agency...is dad actually in a CH, or is it at home care? My Mum, who was in residential care, had her property on the market for two years, before the property was sold and repayment of the Def.Payment made.

While Mum was under home care, her income was taken into consideration..state pension, attendance allowance, pension credit. The various costs were deducted and she paid a proportion of her costs...ie the bulk of her AA, towards her home care.
I'm sure the LA will be aware of sales problems, but why not just ask them?

 

[arielsmelody]

Your post isn't quite clear - if your dad moved in January, why is the value of his home disregarded until October - is it a 12 week disregard, which started in July/August?

When you say your mum would like to buy the house, does that mean they are divorced/separated and she is not living there?

Has the house been advertised for sale on the open market? If you have LPA, and the buyer you have found has a close family connection and does not have funds available, there could be a question whether you are getting the full market value and whether the sale to your mum is in your dad's best interests.

Would a deferred payment agreement with the LA be possible? That would be the obvious answer if you are expecting to have a bit of a delay before the money is available.

 

[InnerGeek]

Sorry I wasn't clearer when I posted this morning, way too much going round my head at the moment.

Dad moved from his own outright-owned house to a rented bungalow in January. He now has carers four times a day, plus shopping and domestic cleaning support through the LA. He pays a small contribution (£19/week due to how much he already spends on aids and private support) towards this. I notified the LA at the time the financial assessment was done of his housing situation and they wrote to confirm his house value would be disregarded until October. I don't know the rules, whys or wherefores behind this, I was just grateful for small mercies.

The house has been independently valued and the sale to my mum will be at that open market value. House prices are falling in my Dad's area, so the chances are that by the time the sale goes through, it will be at an above-market value. Mum and Dad divorced 16ish years ago but remain friendly, and it was Dad who agreed the sale with her. I will be managing the formalities of the sale as Dad's PoA (Finance) as he's not up to that part of things himself. The OPG rules appear to be fine with this.

Once the house is sold, Dad will have the funds available to be fully self-funded, and I am welcoming that as we'll be able to go with a better agency who can actually meet Dad's needs. Until the house is sold (hard at present in Wales, regardless of who would be buying the property - chains are very slow moving just now) the money just isn't there.

I will check with the LA about whether they can do deferred payments for home care, I thought that was just for care home fees. I seem to be making a habit of missing the obvious at the moment. I'm certainly not expecting anything for free, just wondering how to get the money to pay for care when the money quite simply isn't there.

 

[Pete R]

Sorry I wasn't clearer when I posted this morning, way too much going round my head at the moment.

Dad moved from his own outright-owned house to a rented bungalow in January. He now has carers four times a day, plus shopping and domestic cleaning support through the LA. He pays a small contribution (£19/week due to how much he already spends on aids and private support) towards this. I notified the LA at the time the financial assessment was done of his housing situation and they wrote to confirm his house value would be disregarded until October. I don't know the rules, whys or wherefores behind this, I was just grateful for small mercies.

The house has been independently valued and the sale to my mum will be at that open market value. House prices are falling in my Dad's area, so the chances are that by the time the sale goes through, it will be at an above-market value. Mum and Dad divorced 16ish years ago but remain friendly, and it was Dad who agreed the sale with her. I will be managing the formalities of the sale as Dad's PoA (Finance) as he's not up to that part of things himself. The OPG rules appear to be fine with this.

Once the house is sold, Dad will have the funds available to be fully self-funded, and I am welcoming that as we'll be able to go with a better agency who can actually meet Dad's needs. Until the house is sold (hard at present in Wales, regardless of who would be buying the property - chains are very slow moving just now) the money just isn't there.

I will check with the LA about whether they can do deferred payments for home care, I thought that was just for care home fees. I seem to be making a habit of missing the obvious at the moment. I'm certainly not expecting anything for free, just wondering how to get the money to pay for care when the money quite simply isn't there.

Inner Greek is your Dad still living and currently funded in Wales?

 

[InnerGeek]

Inner Greek is your Dad still living and currently funded in Wales?

No, we're both based in Worcestershire, England, now.

 

[Pete R]

No, we're both based in Worcestershire, England, now.

Then my advice would be to sell the house to your Mom at a fair price and get on with being self funding. Obviously till the money gets into your Dad's account he will need help with paying from October but the LA may extend their offer if they can actually see some progress in getting the property sold. (although it has been fairly generous so far)

You are correct that a DPA is for residential care or in some circumstances sheltered housing.

Good Luck.