If you are planning to move into residential care, your home will be included in your financial assessment.
The value of your main or only home is not included if:
- your home is worth less than £23,500
- any of the following people continue to live in your home:
- your partner or spouse
- a relative aged over 60
- a relative aged under 60 who is incapacitated
- a divorced or estranged partner - if they are a lone parent
- a child under 16 who is maintained by you
In all other cases, we will take the value of your home into account after the 12-week disregard period.
Your home will not be considered if you choose to get support at home.
If we take your home into account we will ignore its value for up to 12 weeks. This starts from the date you first became a permanent resident. We call this the '12-week property disregard'. You will have to contribute towards your care costs during this period from income and other capital.
During the 12-week property disregard you will have to decide how you will fund your ongoing care when the disregard period ends. You will need to take advice to decide how you are going to pay for your ongoing care.
If you don't want to sell your home, you could:
- decide to raise the money you need by renting out your home. The rental income may allow you to fund your ongoing care. Whether you can do this will depend on your income, how much the fees are and whether anyone else can help you. You will need to consider expenses such as the maintenance and insurance of the property
- ask family or friends who are willing to contribute towards the cost of your care
- decide to raise the money by taking out a loan, taking out an annuity, a home income plan or some other type of equity release scheme
- decide to apply for a deferred payment agreement
A deferred payment scheme that lets homeowners pay for care home fees without selling their home. The scheme is a type of loan that lets you defer paying the full cost of your care until a later date.
You can apply if:
- you are a homeowner with less than £23,500 in capital (savings and assets), other than the value of your property
- there isn't anyone else living in the property, such as a spouse, partner, child or a relative aged 60 or over
- you have been assessed as needing long-term care in a care home
To find out more see our Deferred payments for adult social care and support leaflet.
Contact us if you have any questions.
The options for paying for long-term care can be hard to understand. Always start by talking to an independent financial advisor. They can help you to decide which option would work best for you. Some options for paying for your care include:
- using the value of your home through equity release
- getting insurance like an immediate needs annuity
- using your savings
While you do not have to follow the advice, it is wise to consider it. Involving your family in these discussions can be helpful too. This way, they understand your situation and can support you in the decisions you make.
Most advisers will offer a free and without obligation initial consultation. During this they should tell you how much their advice will cost. They may charge extra for looking after your investments or if they give you regular advice.
For more information see Getting independent financial advice.
Watch our video to find out more about self-funding and deferred payments.