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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33953
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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My parents took out a £28.000 equity release scheme

Resolved Question:

Hi,
My parents took out a £28.000 equity release scheme some years ago. I have not property of my own and am now in a position to buy the house off them . The company who they had the loan off now what £93.000 back to release the property. If I get a mortgage for that sum and buy the house and if my parents then end up needing to go into a care home before they die will I or the property be liable to any fees for there care ?
Thanks
Sandra
Submitted: 1 year ago.
Category: Law
Expert:  Clare replied 1 year ago.
HiThank you for your questionMy name is ***** ***** do my best to help you but I need some further information firstHow much is the property actually worth>
Customer: replied 1 year ago.
Hi,
I think it is between £130.000 and £145.00 depending on a valuation.Thanks
Sandra
Expert:  Clare replied 1 year ago.
Would you be paying that - or just the £93,000
Customer: replied 1 year ago.
Hi
I would just be paying the 93,000Thanks
Sandra
Expert:  Clare replied 1 year ago.
Then I am afraid that if your parents do need care the Local Authority will work on the basis that there should still be the balance of the equity available for the payment of the fees - and until the notional savings drop below £23,000 they will have to pay the fees from their own resources.I hope that this is of assistance - please ask if you need further details
Customer: replied 1 year ago.
Hi
Does that mean I would have to find the difference between the 93,000 and the valuation and pay that towards there care ?ThanksSandra
Expert:  Clare replied 1 year ago.
Potentially yes - although there is also the exempt rate to take into account as well - so really only the difference between £110,000 and the actual value is relevant
Customer: replied 1 year ago.
Hi
Is there any time limit between the purchase and them needing care that would exempt me for having to pay anything towards there care ?ThanksSandra
Expert:  Clare replied 1 year ago.
You can always try and argue that there was no plan to evade care home fees - just to limit the cost of the equity release - but there is no protective time limit as such
Clare, Solicitor
Category: Law
Satisfied Customers: 33953
Experience: I have been a solicitor in High Street Practice since 1985 with a wide general experience.
Clare and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Hi again,
If I do buy the house for £93.000 and they value it at £ 140.000 is there no option for my parents to gift me the equity amount. If they do how much will I be expected to then pay towards any require care. I thought that there was a set amount people could have that the government could not touch for care needs ?
Expert:  Clare replied 1 year ago.
Your parents will indeed have gifted you the balance - the point that the Local Authority will make is that in doing so they have "divested themselves of "funds which could be contributed towards their care costsThere is some limited "wriggle room" and the amount they are allowed to have without making a contribution is £14,250You can read more herehttp://www.ageuk.org.uk/home-and-care/care-homes/paying-for-permanent-residential-care/

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