Selling Your Parents House to Pay for Care

If you have an elderly parent who needs to move into a care home, you may be wondering what will happen to their house and whether you will have to sell it to pay for their care. This is a common and stressful situation that many families face, especially in the UK where care costs are high and rising.

In this post, we will explain some of the factors that determine whether you have to sell your parents house to pay for care, and some of the options and alternatives that may be available to you. We will also share how we, as an estate agent, can help you through the process of selling your parents home if that is the best or only option for you.

What is the means test for care fees?

The first thing you need to know is that the amount of care fees that your parent has to pay depends on their income, savings and assets, including their property. This is assessed by a means test conducted by the local authority where your parent lives or plans to move into care.

The means test has different rules depending on whether your parent receives care at home or in a residential care home. If they receive care at home, their property is not included in the means test and they only have to pay for care from their other income and savings. However, if they move into a residential care home, their property may be included in the means test, unless one of the following applies:

• A spouse or partner still lives in the property

• A relative aged 60 or over still lives in the property

• A relative who is disabled or incapacitated still lives in the property

• A child under 18 who your parent is responsible for still lives in the property

If none of these apply, then your parent’s property will be counted as an asset and its value will be added to their other income and savings. The local authority will then calculate how much your parent has to pay for their care based on these thresholds:

• If your parent has more than £23,250 in assets, they will have to pay for their full care costs

• If your parent has between £14,250 and £23,250 in assets, they will have to pay a contribution towards their care costs

• If your parent has less than £14,250 in assets, they will not have to pay anything towards their care costs

Do I have to sell my parents house to pay for care?

The simple answer to this question is no – you cannot be forced to sell your parents house to pay for care. However, if your parent’s property is included in the means test and they have more than £23,250 in assets, they will have to pay for their full care costs and may not be able to afford them without selling their house.

There are some ways to avoid or delay selling your parents house to pay for care, such as:

• Renting out the property and using the rental income to cover care fees

• Applying for a deferred payment agreement with the local authority, which allows your parent to delay paying for their care until after they die or sell their house

• Taking out an equity release plan or a lifetime mortgage on the property, which allows your parent to borrow money against the value of their house and use it to pay for care

• Giving away or transferring the property to someone else, such as a child or relative

However, each of these options has its own advantages and disadvantages, and may not be suitable or available for everyone. For example:

• Renting out the property may incur tax liabilities and maintenance costs, and may affect your parent’s eligibility for benefits

• Applying for a deferred payment agreement may incur interest charges and administration fees, and may reduce your parent’s inheritance

• Taking out an equity release plan or a lifetime mortgage may reduce your parent’s equity in their house and affect their ability to move or switch providers

• Giving away or transferring the property may count as deliberate deprivation of assets, meaning your parent would still have to pay the same level of care fees as if they still owned their house

Therefore, it is important to seek professional advice before making any decisions about what to do with your parents house. You should also consult with your parent and respect their wishes as much as possible.

How can we help you sell your parents house?

If you decide that selling your parents house is the best or only option for paying for their care, we can help you through every step of the process. We specialise is support families in selling houses to pay for care and we understand that this can be a difficult and emotional time for you and your family, and we will do our best to make it as smooth and stress-free as possible.

Here are some of the ways we can help you sell your parents house:

• We can provide you with a free valuation of your parents house based on current market conditions and comparable properties in the area

• We can advise you We can advise you on how to prepare and present your parents house for sale, such as decluttering, cleaning, repairing and staging

• We can market your parents house to potential buyers through various channels, such as online platforms, social media, local newspapers and our network of contacts

• We can arrange and conduct viewings of your parents house with interested buyers, and handle any queries or negotiations on your behalf

• We can liaise with solicitors, surveyors, mortgage lenders and other parties involved in the sale, and keep you updated on the progress and status of the transaction

• We can support you until the completion of the sale and the transfer of ownership, and help you with any after-sales issues or questions

We have extensive experience and knowledge of the local property market and the legal and financial aspects of selling a house. We also have a friendly and professional team of agents who are dedicated to providing you with the best service and results.

What are the benefits of selling your parents house with us?

Selling your parents house with us has many benefits, such as:

• Saving time and hassle: We will take care of all the details and tasks involved in selling your parents house, so you don’t have to worry about them. You can focus on your parent’s care and well-being, and your own personal and professional life.

• Getting the best price: We will use our expertise and resources to market your parents house effectively and attract qualified buyers who are willing to pay a fair price. We will also negotiate on your behalf to secure the best possible deal for you.

• Reducing stress and uncertainty: We will guide you through the whole process of selling your parents house, from start to finish. We will answer any questions you may have along the way, and keep you informed of any developments or changes. We will also help you overcome any challenges or issues that may arise during the sale.

• Achieving peace of mind: We will ensure that the sale of your parents house is completed legally and safely, and that all the paperwork and formalities are done correctly. You can rest assured that everything is done in accordance with your parent’s wishes and interests.

How to get in touch with us?

If you are interested in selling your parents house with us, or if you want to find out more about our services and how we can help you, please get in touch with us today. You can contact us by phone, email or through our website. We will be happy to hear from you and assist you in any way we can.

We hope that this blog post has given you some useful information and insights on selling your parents house to pay for care. We know that this is not an easy decision or situation to deal with, but we are here to support you and make it easier for you.

Thank you for reading our post. Please feel free to share it with anyone who may benefit from it. And don’t forget to check out our other blog posts for more tips and advice on property matters.