My wife who has mixed dementia has recently had a number of feint/fall incidents which resulted in a period in hospital. They would not discharge her without a home care package and I have to complete a Financial Assessment form from the local authority. Her total savings are in the region of £15,000 so below the threshold for full self funding. However she does own a leasehold holiday apartment with another member of the family on a tenants in common basis. The Local Authority say that means she will have to self fund. On the forum in I think 2012 a couple raised their situation where they had purchased a property with one of their parents on a 50/50 tenants in common basis but when the parent required care home funding the Local Authority included her 50%. In the feedback they received it was stated that as she only owned half a house then that did not have any monetary value as it was impossible to sell just half a house. Does anyone have any experience of this type of situation and does the fact that it is a holiday home alter the situation? Equally does the other tenant in common have any rights inn this matter.
tenants in common on holiday home and financial assessment
- Thread starter mistaman
- Start date
In 2012 the relevant legislation was CRAG (charging for residential accommodation), this stated that the open market value of half a house could be zero.
CRAG has been superseded by CA2014 (care act 2014) which does not contain the reference to the value of half a house LAs have taken the stance that the house has to be sold.
It was expected that there would be a high level legal challenge, I have not seen any reports about this.
I can't see any reason why being a holiday home would make any difference.
CRAG has been superseded by CA2014 (care act 2014) which does not contain the reference to the value of half a house LAs have taken the stance that the house has to be sold.
It was expected that there would be a high level legal challenge, I have not seen any reports about this.
I can't see any reason why being a holiday home would make any difference.
I owned half a bungalow with my dad. Mum's half was signed over to me before she died. She had enough savings for her care and wanted to leave the house to me.
In the financial assessment dad's half of the house was included so after the 12 week disregard he was considered to be self funding.
Dad lived in the bungalow until he became too unwell. He died suddenly just before Christmas so it never became an issue but if I'd decided to argue the point with the local authority about the value of his half of the bungalow when I didn't want to sell I don't know what the outcome would have been.
In the financial assessment dad's half of the house was included so after the 12 week disregard he was considered to be self funding.
Dad lived in the bungalow until he became too unwell. He died suddenly just before Christmas so it never became an issue but if I'd decided to argue the point with the local authority about the value of his half of the bungalow when I didn't want to sell I don't know what the outcome would have been.
Hi @mistaman !
We have the same issue and discussions in our family. My MIL and FIL who has dementia own a small shop, which costs around 50000, and this doesn't allow him to get LA funding. Now, my MIL would like to keep her half of the shop, because of her low income, and the small rent adds to her income, as she has a very low pension.
I guess the value of the shop will not be the same, the total value of the shop can't be just divided by 2, because who really wants to own 50% of the shop with someone else.
We have the same issue and discussions in our family. My MIL and FIL who has dementia own a small shop, which costs around 50000, and this doesn't allow him to get LA funding. Now, my MIL would like to keep her half of the shop, because of her low income, and the small rent adds to her income, as she has a very low pension.
I guess the value of the shop will not be the same, the total value of the shop can't be just divided by 2, because who really wants to own 50% of the shop with someone else.
This is different from the usual situation.
You might find a buyer for half the shop if they received half the rental income.
That's what we are trying to do @nitram, but there was no interest at all for the half a year, and we already spent all my FIL cash for the nursing home.
