Free guide · 8 min read
Download the PDF 8.1 MB
Welcome
My name is Adarsh Shah, and I am the Director here at Parkside Estates. I’ve been working in the property industry for a number of years and have supported many families selling property to help pay for care fees, often for care homes.
This can be an extremely difficult time for everyone involved. You may be a homeowner who needs to fund care in your own home or your place in a care home. The person whose home it is may not be able to explain their wishes or express their feelings. Sometimes there are many family members involved; sometimes you’re dealing with an awful lot on your own. Both situations come with their own challenges.
At Parkside Estates, we understand that it may involve more than the practicalities of selling a building. It can also mean coming to terms with new needs and responsibilities, and the feelings of grief you may experience can make the process difficult to navigate.
We never forget how overwhelming it can feel, and that’s why we can assure you you’ll always receive a patient, polite, and professional service should you decide to sell your home with us. Our aim is to help and guide you to make the best decision for you and your situation.
After reading this guide, you may find it helpful to have a no-obligation, no-pressure chat with us if you are facing this journey. Thank you for your time, and please get in touch with us if you have any questions whatsoever.
Adarsh Shah, Director, Parkside Estates
Getting started
If you are considering selling your home to fund the costs of care, check with your council what you’re entitled to before you begin the process of a property sale. Councils have a duty to signpost you towards the correct services, even if you are self-funding. This might mean funding for care within your home, a place in a care home, or specialised care provision. There are also other services available, like adaptations inside your home.
Care needs assessments from adult social services are free, and they can help you uncover the variety of options open to you. There are also carers’ assessments if you have a carer.
The assessments can be very helpful in identifying how your needs might have changed. It can be easy to downplay things, often because you are used to coping – you may think it’s just your family fussing over you. An independent opinion can be beneficial for clarity, as well as for accessing any support.
-
Support at home
You may find there are ways of supporting you at home. This is known as ‘home care’. You might have a care worker visit regularly, or a carer might move in to provide 24-hour care. This might be long term, or to give a family carer a holiday. It could also be to help you after a hospital stay, or for emergency care. However, live-in carers can end up being more expensive than living in a care home.
-
Moving to a care home
Although moving to a care home can feel like a big change, there are many advantages. There’s regular company, and cleaning and meals are taken care of for you. If you need it, you can have help with personal and nursing care (depending on the care home). It is also reassuring to know there are people around for you if you need them.
Financial assessment
Once you’ve had a care needs assessment, you’ll probably then be means tested. This is also known as a financial assessment. It is designed to see whether the council can assist with some or all of your care fees, whether that’s for care at home or in a care home. If you have the financial resources to self-fund, there is something called a ‘light-touch assessment’, which means the council will still support you to arrange your care.
The assessment looks at your income, including any benefits and pensions. It also looks at your capital, which means your investments and savings. The value of your home may or may not be included – it depends on your needs and circumstances.
The assessment also gives you an opportunity to find out more about what the council offers, which could be useful if your needs or circumstances change in the future.
You will likely have to pay for all care yourself if your capital is valued above England: £23,250; Scotland: £28,750; Wales: £50,000 (for residential care). You may receive a contribution towards care fees if your capital is below these figures, and the exact amount will be determined as part of your assessment. (These figures are as given in the guide, correct as at 13 April 2021 – check the current thresholds with your council.)
If you’re a homeowner, your capital is normally calculated with the value of your home included. If the property is the main residence of your current partner, it is exempt from the assessment. If your former partner still lives in the property, it will be included – unless your former partner cares for a relative who is over 60 or disabled, or cares for your child who is under 18.
Your FAQs answered
Selling or giving away assets, including property, to avoid care fees is called ‘deliberate deprivation of assets’. Unlike inheritance tax, there is no ‘7-year cut-off’ rule, which means assessments can take into account your past income and capital as well as your current situation.
It may seem tempting to give away assets so they aren’t included in council calculations, or to buy high-value items like art or jewellery to reduce your capital. However, the council can include the previous asset in your assessment, which means you’ll have to pay fees as if you still had access to it. The council can also recover the difference between what they paid and what they would have paid from the person who now has the asset.
Despite what many companies claim, this can be a risky strategy. An agreement is drawn up between you (or your power of attorney) and the trust company, where you transfer ownership and management of a property over to them.
The promise is normally that the value of the property won’t then be used for care fees and your beneficiaries will still receive their portion. However, it may be considered deprivation of assets by the council assessing you. Many trust companies are not even regulated. As a complex and potentially risky solution, if you want to explore this route, please make sure you consult a solicitor.
Selling your home at most stages of life can be very difficult and sometimes overwhelming. Try not to make rash decisions because your emotions are fogging things – easier said than done at times, of course.
It can feel tempting to use a ‘quick sale company’ or a company offering low fees. These companies have their place but are more appropriate in dire emergencies. Start by looking at your local estate agents. Ask three different agencies to visit you and explain their marketing processes. If they tell you the property is worth a lot more than you’d expect, be cautious – some estate agents aim to flatter you simply to get your property on their books to meet their targets.
To get your property sold in a timely fashion, and to help you achieve the maximum price in the market, there are a few easy things you can do.
Simply putting away precious ornaments and family photographs can start the process gently. It makes a big difference for buyers coming to look round, as it gives them the freedom to imagine their own things in those spaces.
This is such a common question. A lot of people try to put off the inevitable because they’re scared to face it. It can be extremely daunting to leave behind a home full of happy memories.
What we hear time and time again is that people end up wishing they’d done it sooner. Moving into a care home, or downsizing, can be so good for your wellbeing and that of your family. Both bring new opportunities for friendship and different types of support. Even the act of sorting through the things in a home can become a special task – things you’d forgotten you had bring a new joy when rediscovered.
Why we can help you
Selecting the best agent to help you sell your property is a big decision, especially with so much already going on in your life. Here’s why we like to think we’re the best choice for you.
-
Experience
I’ve been helping people buy and sell their property for a number of years, and our team have more than 80 years of experience between them.
-
Independent
We are a family-run business providing an unparalleled level of personal service. We can make decisions quickly and always make ourselves available. You have the reassurance that you can contact us at any time to handle any queries.
-
Always looking ahead
We have invested heavily in virtual viewings, video tours, and other new technologies. This means you know your property will be expertly marketed, which leads to achieving premium prices.
-
You focused
We are focused on you. That means getting you the results you are looking for. And we don’t just talk the talk, we walk the walk. We will be with you every step of the way to advise, support, and celebrate with. We’ve built our reputation on the quality of our relationships rather than the number of transactions. This is testament to our approach and has led to most of our business coming from word of mouth.
Thanks for taking the time to read our guide. If you want to talk about anything contained in it or have any questions, please don’t hesitate to call us on 020 8445 6737.
General information, not legal, financial or tax advice — every situation is different, so speak to a solicitor or accountant about your own before you act on it.
