Money hiatus, fees, house sale...

[Anotherz]

Due to unfortunate reasons, the available money to pay care home fees (EDIT: by a self-funding person) will run out imminently.

The house will have to be sold. It would be beneficial to do some work to prepare it for sale to maximise return.

I have a property and financial affairs LPA. Value of the house will in any case easily cover the loan.

What are some relevant ways to obtain a small loan (say £60,000) to cover care home fees while the work is done?

 

[Grannie G]

Hello @Anotherz

It should not be necessary to take out a loan.

The LA is likely to wait until the property is sold when you, on behalf of your person with dementia will be able to pay the arrears.

 

[Anotherz]

Hello @Anotherz

It should not be necessary to take out a loan.

The LA is likely to wait until the property is sold when you, on behalf of your person with dementia will be able to pay the arrears.

Hi, thank you for that; I'm unsure though how it would work. The LA has nothing to do with paying the care home, she's a self-funder (I should have said that, if there's time I'll edit my OP).

I have just come across something caled aa "Deferred Payment Agreement", migt that be relevant?

 

[Grannie G]

Yes Deferred Payment is what I was referring to but couldn't think of the right term.

You will need to apply to social services for a financial assessment and they will arrange for the payment to be made to the home until the house is sold.

Paying for your own social care (self-funding) - Social care and support guide

What you need to know if you are paying for your own care.

www.nhs.uk

 

[nitram]

Note that a DPA (deferred payment agreement) is only possible if the person has less than the upper limit (£23250 in England) in assets other than the house.

EDIT
Check if using person's funds to renovate house prior to sale causing assets to drop to upper limit would be acceptable to LA

 

[Rayreadynow]

You may find there is a restriction on the LAP for taking out loans.

 

[nitram]

You may find there is a restriction on the LAP for taking out loans.

LAP >>>LPA
Only if it is an unusual additional clause.
A loan in donor's best interests is allowed, else no DPA.

 

[Anotherz]

Note that a DPA (deferred payment agreement) is only possible if the person has less than the upper limit (£23250 in England) in assets other than the house.

As I said, the money is about to run out.

 

[Anotherz]

I'm a bit miffed to say the least. Had I known, some years ago, the ins and outs of this, I would have moved in with Mum before she needed to go into a nursing home, and let my own house, and now her house would not have to be sold. If that would have worked.

 

[nitram]

As I said, the money is about to run out.

Is the LA aware?
Ask LA about DPA to cover care fees.

 

[canary]

I'm a bit miffed to say the least. Had I known, some years ago, the ins and outs of this, I would have moved in with Mum before she needed to go into a nursing home, and let my own house, and now her house would not have to be sold. If that would have worked.

If you are now 60 or over yrs old and you had moved in some years ago in order to care for your mum, then yes, the house would now probably be exempt from the financial assessment all the while you live there

But it may well have taken a terrible toll on your health.....

 

[Rayreadynow]

The Local Authority will soon be running out of people who have built up that kind of equity in a property over their lifetime..