Home owners and deferred payments
What is a deferred payment?
We will not count the value of your home as capital if you're staying in a care home:
- For a short time and will return to your home or
- Are selling your home to buy another one.
If your stay becomes permanent, we will treat the value of your home, minus 10% for sellers expenses and outstanding mortgage costs as capital.
You can sell your home to fund the cost of your care or we may be able to arrange a deferred payment to help you pay part of the fees.
The deferred contribution would need to be paid back to the council when you sell your home or when you leave the care home.
Occupied property
We will ignore the value of your home if the property is currently occupied by:
- Your husband, wife or partner
- A relative who is 60 years old or over, or
- A relative who is eligible for incapacity or disability benefit, or
- A dependent child aged 16 or under who you are responsible for
- A friend or relative who gave up their home to live with you to care for you.
Contact us for more information or to discuss your personal circumstances.
Permanent stay in a nursing home
If your stay is permanent, we will ignore the value of your home for the first 12 weeks. This is called the 12-week property disregard.
You can use this time to decide whether you wish to sell your home or enter into a deferred payment agreement with us.
When you have chosen a home you will be given the relevant information by your care manager. You will then be contacted by the Financial Assessment & Charging Team who will arrange a meeting with you.
Property disregard
The disregard only applies to property. You will still need to make a contribution towards the cost of your care from your income and capital during this period.
What happens if I sell my home?
If you sell your home during the 12 week disregard period, we will take into account the money you get from the sale, starting from the date of sale and the disregard end period.
When you sell your property, we will include the money from the sale, minus expenses and outstanding mortgages, as your capital.
If your total capital is then over £23,250, you will become a self-funding client. As a self-funding client, you will have to pay the full cost of the fees to the Care Home.
What happens if I don't want to sell my home?
If you do not wish to sell your home you can enter into a deferred payment agreement with us.
We will be able to defer the part of your contribution relating to your property, and we will pay the difference to the care home.
You will still have to make a weekly contribution based on your income and savings. You will also need to agree to us placing a legal charge on your property.
Can I rent out my property during this time?
During this time, you can rent out your property but the rental income minus some expenses will be included in your financial assessment for your weekly contribution towards the care home.
We will send you 6 monthly statements showing how much is accruing as debt to the council on the deferred payment account.
During the first 12 weeks, you will pay a contribution based on your income. From the 13th week you will continue to pay the contribution but the difference between the contribution and the full cost of the care home will build up as debt to us.
How to get in touch
For more information relating to deferred payments please contact the Financial Assessment & Charging Team.
