Your Funding Options: No, You Don’t Need to Sell Your Home to Pay for Care.

If you’re having trouble with everyday tasks, it might be time to consider care options. But, arranging care can for yourself or a loved one can be a challenge. From knowing where to start, what type of care and support you need and how to fund it, there are lots of questions to ask. But you’re not alone — we’re here to help you through the process.

To find out more about your care options, contact one of our care advisers to discuss your options and book a free care needs assessment. A member of our team will talk to you to find out what kind of care you need, and how much you might have to pay for it. Your local council will advise you on how much you need to contribute to your care, which depends on your savings and capital assets.

While your home is counted towards your capital assets, you don’t always have to sell your home to receive care. Read on to learn about the exceptions.

Exception 1: You receive home care

If you receive care in your own home, you are not required to sell your home to pay for your care.

However, if your capital is over £14,250, you are still required to contribute towards your homecare. Your local council will assess the total percentage you will be liable for based on your unique circumstances.

Your council care assessment might determine that you will benefit from disability equipment and home adaptations. If this is the case, you may qualify for financial support from your council.

Is Live-in Home Care Right for You?

Live-in care is an increasingly popular alternative to residential care, as it allows your loved one to keep control of their life.  During the Covid-19 Pandemic we know that home care is a safer option and an options that is increasingly popular.

We know the default care option tends to be residential or nursing homes, although unsurprisingly 97 per cent of people don’t want to move into institutional care if they become ill or less able to cope.

Live in care means a client never need to conform to a new daily routine in a strange new place. Instead, the flexibility of live in care means it is the job of the carer to adapt to the routine already in place. By living with your loved one they become completely dedicated to their needs, their wellbeing and their happiness.

We understand that many people have the intention to remain in their homes for as long as possible, and we make this a viable option for many.  We go the extra mile to extend our live-in care services to as many people as possible, whatever their needs may be.

Quite simply, live-in care allows our clients to remain independent, in their own home, with all the security of professional help close at hand.

Exception 2: You use an equity release scheme to pay for your care

If your mortgage is almost or completely paid off, an equity investment scheme might be the right option for you.

Put simply, equity release is a way of taking the cash out of your home while you still live in it. This is ideal for those who have little money in your bank account or liquid savings, but owning a valuable house.

The easiest way to release equity is to downsize your home while you are still mobile enough to do so, and before you require residential care.

Whilst there are some great equity release schemes out there, there are some that are very expensive. Therefore, it is important that you understand everything. So it’s vital to speak to our accredited later life advisers.

You can find your nearest long-term care funding adviser by contacting the Society of Later Life Advisors.

How Does Equity Release Work?

There are two main equity release schemes:

  1. Lifetime mortgages
  2. Home reversion schemes

Lifetime mortgages are the most popular of the two equity release schemes. A lifetime mortgage is a mortgage on your house that will be paid off when you die.  These mortgages come with a fixed interest rate and cannot be paid off with monthly instalments. Luckily, you will never owe more than the value of your house. And because the value of your house will continue to increase, you will be pleased to know that you have something to leave to your loved one when you pass away.

A home reversion scheme is when you sell part of your home to an equity release company. The biggest drawback to this approach is that the company’s offer for a share in your home will be below market value. So by selling a 20% of your home, you might surrender 70% of your home’s value.

If you’re interested in joining equity release scheme, you must meet these criteria:

  • The youngest homeowner must be no younger than 55
  • Your property is within the UK and worth not less than £70,000
  • The homeowners must be UK taxpayers

Exception 3: You share your home with certain family members

Your home won’t count towards your capital if you live with:

  • Your spouse, partner or civil partner
  • A close relative aged 60 or over
  • A close relative who is incapacitated
  • A close relative under the age of 16 who you’re legally liable to support

Exception 4: You qualify for a deferred payment agreement

If you’re not ready to sell your home yet, ask your local council to advise you on a deferred payment agreement.

This is a legal agreement with the local council that they subsidise your care costs, on condition that they are repaid from your property at a later date. This agreement can be temporary or until you pass away.

Most people are at crisis point when they start looking for full time care.

Understanding how to fund your e care can be difficult and feel overwhelming. We know, it can be hard to make that first phone call to us, but there really is no obligation, and we are more than happy to talk through the different options with you so you can make an informed decision.

It’s true that you can change arrangements if they prove to be unsatisfactory, but it is arguably better – and much less disruptive– if you get it right the first time. The good news is that by conducting some research and investing a little time in talking to us, you can give yourself – and your parent – the best chance of making the right choice.

Shockingly, “low expectations and pressure to make decisions quickly means people often accept the first home that is ‘good enough’.” The Live-in Care Hub recommends advance care planning to avoid the ‘good enough’ decision and achieve the ‘perfect for me’ scenario.

The cost of Live in care  compares favourably to other types of full time care, such as a residential nursing home. However, the care we provide is very different to that of a nursing home.

 Read more: Care and support for the elderly : A growing alternative to residential and nursing care.

Ashridge Home Care is one of the few companies that make it possible for vulnerable people to receive the highest quality care in the comfort of their own home. You can learn more about the significant benefits to health and well-being our quality one-to-one home care provides here