If you live in England and have assets in excess of £23,250 including property (for Wales the limit is £22,000 and for Scotland £22,750) you will be expected to fund the cost of long term care.
Owning your own property is therefore one of the major reasons why people fail to qualify for support with care home fees.
You can consider equity release schemes or renting your property to help with care home fees. However in many cases the only realistic way to pay care fees is through the sale of the family home.
Partnership Assurance has now introduced another option without the need to sell the family home.
They permit a loan to be secured against the property which is then used to purchase a care plan. This provides a guaranteed income for the life of the person needing care.
Interest is payable on the loan but this is rolled up and does not become payable until the property is sold or on death.
This option means that care home fees can be funded as soon as needed without having to wait for the property to be sold. It also means that the property is retained should the client’s health improve and they want to return to their home.
