Selling house to pay care situation - House not selling

Hi, My mother in law ( 85 ) is presently in care as a result of Vascular Dementia. She has been in the existing care home for approx two years and is self funding up to now. She has been considered for continuing care but guess what - she does not qualify yet. As it costs a small fortune each month the savings are dwindling and are below £23,000 so my better half who has enduring power of attorney has had to put her mothers house on the market. Before this it was rented out. The trouble of course is that it isn't selling for anything like what the agents have priced it at given the present financial climate. It has been considerably reduced already. My wife has been advised by Social services that they would likely pick up the shortfall, as finances are below £23.000 until the house is sold and then it would need to be paid back. They assured her that her mother would not need to move. I was just wondering if any experts have any views as to this situation? Thanks. Stuart.
Reply to
SRT
Not an expert but if Social Services have said that I would be inclined to believe it. Certainly I wouldn't be surprised that repayment will be required when funds become available.
Don't know your MiL's condition but I suggest you investigate an Immediate Care Plan. Insurance based but possibly best to find a good independent financial advisor to sus out the best deal.
Did this for my mother when she went into a home aged 90. She was, for her age, in good health mentally and physically but needed help to live comfortably independently, so failed a few ADLs (Activities of Daily Living). I took out a plan that would pay the then care home fees rising by, I think, 5% a year. The premium was equivalent to three years fees and Mother lived in the home for the next 7 years. Had she died within the 3 years there would have been no fee refund. The premium is presumably based on life expectancy. IIRC the provider was PPP, the financial advisers were Norwich based.
Reply to
Old Codger
In article , snipped-for-privacy@sky.com says...
My local authority will pay the fees, interest free, but will put a charge on the property which you have to pay for. Interest does not become payable until 3 months after death, giving a window to sell the property.
I'm not an expert but have two friends who have recently been through this situation.
Reply to
Moles Harding

In article , snipped-for-privacy@sky.com says...
My local authority will pay the fees, interest free, but will put a charge on the property which you have to pay for. Interest does not become payable until 3 months after death, giving a window to sell the property.
I'm not an expert but have two friends who have recently been through this situation.
Thanks for the replies and info folks :) We will await the outcome of the financial assessment in due course. Mother in law does have added complications of diabetes but tbh she tends to be unaware of her condition by virtue of the dementia. Its a strange condition to be sure - as others will know. Regards. Stuart.
Reply to
SRT
Yes indeed!
I have been following this and from experience you do have my sympathy.
I can't help wondering why you decided to stop renting your mother in law's property. I would have thought that this income stream added to the lady's pension should go a long way towards her care costs. Isn't there also a question of Disabled Living Allowance?
It's a long time since we were faced with a similar problem and this was the approach we used.
Reply to
Mel Rowing


Yes indeed!
I have been following this and from experience you do have my sympathy.
I can't help wondering why you decided to stop renting your mother in law's property. I would have thought that this income stream added to the lady's pension should go a long way towards her care costs. Isn't there also a question of Disabled Living Allowance?
It's a long time since we were faced with a similar problem and this was the approach we used.
The rental received really did not accrue sufficient funding to pay for the incredible increases in the care costs, even with the pension and benefits mentioned there is still a shortfall that is presently being supplemented by savings which wont last a great deal longer sadly.
Reply to
SRT
This sounds a very reasonable way to approach things, rather better than selling the house in fact.
Robert
Reply to
RobertL

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