Although care homes are essential in caring for the elderly and loved ones with age-related conditions, the cost of a care home can be debilitating financially. Most people often have to consider selling their homes to pay for care homes.
Considering your home is your greatest and your most valuable asset, you will certainly try to think of other ways to pay for care homes without selling your homes. Luckily, there are a few options that you can consider.
Know if you need to sell the property
Before you can consider any possible alternatives, you should first assess how much you can afford to contribute towards the cost of a care home. Most of this is done by the local authority during the financial assessment, which might include the value of your home.
Your home is not included in the assessment if:
- You need care within your home
- You have a partner who is living in the house
- You have siblings or children under the legal age
- You have a close relative over 60 years (or incapacitated) living in the house
Depending on your financial situation after the assessment, here are some options that might help you pay for care home fees.
12-week property disregard scheme
This scheme doesn’t completely save your home, but it gives you more time to get your finances in order. The local authority pays for your care home fees for the first 12 weeks of a person’s residence if they own property and no one lives there.
The authority disregards the value of the property for the first 12 weeks of your care. This gives you time to consider whether you need to sell the home to pay for the care home costs.
Deferred payment agreements
You can delay the sale of your property by arranging for a deferred payment with your local authority. The deferred payment is a loan you can request from the local authority that will be used to pay for your care home fees. Your property acts as security for the loan. The loan can be repaid at a later date and save you from having to sell the house.
You can defer the payment until you decide to sell your home in the future or until after your death. After death, the costs will be paid from your estate.
Rent out the property
If there’s no one living in the home, you could consider renting it out if you’re faced with the prospect of selling the property to pay for your care fees.
Renting out the home can provide you with income to supplement the cost of the care home in nuneaton. It will also save you from selling the home at anything less than its total value. Should you decide to go down this path, ensure you consider all factors like;
- periods of downtime between tenants and the property is not providing you with any income.
- The extra costs are associated with managing the property.
- Repair and redecorating costs.
- The income you get from renting the house might push you over the limit for the local authority to assist.