Funding care for a loved one can be expensive – could equity release help with the cost? This is the question Mark Gregory is tackling in this week’s Ask the Expert
The Question
I am writing on behalf of my brother and I and also my Dad. He recently had a stroke and is in hospital at the present time. However, it’s looking like he will need to have full-time carers and none of us has the money to cover the costs.
Frustratingly, the money tied up in his home is considered as part of the cost assessment, so we are not entitled to financial support once the NHS funding expires.
Can we release equity for this purpose and what would happen if Dad were to have to move to a care home?
Mark’s Answer
Firstly, I am very sorry to read that your Dad has had a stroke, and I hope he makes a full recovery. Thank you for confirming that his care has been assessed by the NHS, and I can confirm that using the equity from his home is an option for your Dad to raise the capital he needs to ensure his care in the home can be funded.
However, without knowing specific details including his age, the value of his home and his personal circumstances I can’t confirm if he is eligible, how much capital may be available and how long the funding will last.
I can confirm that if your Dad was to secure an equity release plan, it is secured on his home and if he was to leave his home to go into long-term care, the plan would end, it would have to be repaid without early repayment charges, and this would likely involve the property being sold to repay the provider.
As a family the best option for you all is to take expert advice from a whole of market adviser, and my experienced advisers will discuss your plans and options in full detail. They offer this service without charge, and you can consult with them and build your knowledge from them and be assured it is the best option for your Dad.
Once your adviser has assessed your Dad’s situation they will make a recommendation, and they will only charge for their advice when any recommended plan completes and this is after you have spoken to your own expert solicitor, so this will give you peace of mind.
Furthermore, our adviser will perform a means tested benefits assessment to ensure that raising capital would impact your Dad’s benefits, if he is in receipt of any, such as Pension Credit, Council Tax Reduction or if he is entitled to any benefits that he is not claiming.
Furthermore, at this stage of your enquiry you may find ‘My Care Consultant’ who are a trusted company who provide a useful source of information regarding care without obligation https://mycareconsultant.co.uk
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
