What happens to my mum or dad’s house if they go into care?

If your mum or dad goes into a care home, they’ll pay for their own care, as owning a home means they’ll likely be above their country’s threshold. This doesn’t apply to home care. In this case, they can continue living in it while receiving care.There are a few circumstances where the value of their home won’t be included in a financial assessment for care in a care home, such as if somebody who cared for them still lives in the property, or a spouse, partner, civil partner, close relative older than 60, a dependent child or a disabled relative.

How do I stop selling my home to pay for care?

There are a number of alternatives you may be able to use to avoid selling your home to pay for care. These include equity release, deferred payment agreements, and renting your property for additional income.

Selling My Parent’s House To Pay For Care | Is This Needed?

Whether you or your local authority will pay for care depends on the total value of your savings and income (and assets if care in a care home is needed). When paying for care, many people sell their homes to have enough money, so you may be wondering whether this applies to you and your loved ones.

This article’s purpose is to educate you on the different care funding options available. With that said, we recommend seeking the advice of an FCA accredited financial advisor before making any decisions. You can speak to someone at the Society of Later Life Advisers (SOLLA) for expert information.

Kickstart your care search

Discover the best care homes in your area through Lottie.

Find your nearest care home

Will I Need To Pay For My Own Care?

Whether you’ll pay for your own care is worked out through a financial assessment (means test). This looks at the total value of your savings and income (and assets if care in a care home is needed).

Homeowners who need care in a care home are more likely to be above their country’s upper threshold, so will pay for their own care. Our data shows that the average care cost for privately-funded residential care in a care home is £1,232 per week.

In some cases, your home won’t be included in a financial assessment, such as if you need home care. In this case, you can continue living in your home while receiving care.

We’ve listed the funding thresholds below. Your local authority will fully fund your care if you’re below the lower threshold, and they’ll partially fund it if you’re between the thresholds.

Country	Upper Savings Threshold	Lower Savings Threshold
England	£23,250	£14,250
Northern Ireland	£23,250	£14,250
Scotland	£32,750	£20,250
Wales	£24,000	N/A

Will My Home Be Included in a Financial Assessment?

Whether your home is included in a financial assessment depends on if you’ll receive care in a care home or your own home.

Care in a care home

Your property will usually be included in a financial assessment when receiving permanent care in a care home.

Homeowners who need care in a care home are almost always above the threshold for this reason (because the value of a property is usually much more than the various upper thresholds in the UK).

However, your home won’t be included if you only need short-term care in a care home.

Care at home

Your property isn’t included in a financial assessment when receiving home care. For this reason, people who own their homes and need home care are much more likely to be below their country’s middle or lower threshold.

We’re here to help you find the right care home for you or your loved one. You can request a free list of care homes from our care experts, who will then share homes matching your budget, location and type of care needed. You can also search for a care home through our easy-to-use directory.

Other Circumstances That May Affect If Your Home Is Included in a Financial Assessment

It’s jointly-owned

If you own your home with someone else, only your share will be counted during a financial assessment. A tenancy in common allows people to own specific shares of a property.

It’s up to your local council to work out these individual values. It isn’t simply a case of valuing the entire property and dividing by your share to get a figure. Instead, they’ll need to consider how much someone would pay to become a joint owner instead of you.

If you don’t have equal shares of the home, you may need to provide evidence to prove this.

Someone else still lives there

Your home won’t be included in a financial assessment if one of the following people is still living in it:

Your spouse, partner or civil partner
A close relative older than 60
A dependent child
A disabled or incapacitated relative

It also might not be included if someone is still living in the home who has been caring for you, such as your child .

How The Value Of Your Property Is Determined

Your property’s value will be determined by its present market value. Any mortgages or loans on the property are then deducted from this current market value. If any expenses would be incurred to sell the property, these will also be deducted from the current market value.

Alternatives To Selling Your Home To Pay For Care

Deferred payment agreement

A deferred payment agreement is an arrangement with your local council where they pay for your care, and you pay them back later (when your home is eventually sold). Deferred payment agreements are only available for people who need long-term care, so wouldn’t cover something like support in a respite care home.

Renting our your property

One idea is to rent out your home and use the rental income to pay some or all of your care home fees. While this extra income would be welcomed, it does come with lots of additional admin, such as ensuring your property meets all health and safety requirements, listing it, and tending to the needs of tenants.

Equity release

This allows you to release money from your home without having to sell it. There’s usually a minimum age for equity release, such as 55. Money can be released from your home in smaller instalments, or as a lump sum.

Find Care Near You

You can use Lottie to find a care home near you. To ease your search, you can also request a free list of care homes, where our care experts will share homes matching your budget, location and the type of care you need.

We list residential care homes, nursing homes, dementia care homes, and temporary respite care homes if short-term support is needed.

You can also search for home care through Lottie, or request a free list of home care agencies in your area.

Lottie matches care seekers with the best care homes for their needs. You can request a free list of care homes from our care experts, who will share homes that match your budget, location, and type of care needed. You can also search for a care home through our easy-to-use directory.