The cost of long-term care can be high so it’s no wonder some families consider equity release as a way to pay the fees. Mark Gregory explains how to navigate this funding route
The Question
My auntie very recently had a fall and has been diagnosed with vascular dementia. She now needs round-the-clock care at a care home. She lives alone and is 60 miles from her nearest family. My sister and I have been looking for suitable homes, but they are so, so expensive!
We wondered if equity release might be the solution to funding her care. She owns her own house and fully paid up her mortgage in 2004. She agrees this is the best solution but due to her dementia and the fact my sister and I do not have Power of Attorney we are concerned it might not be possible. What is your advice?
Mark’s Answer
I am really sorry to learn that your auntie has had a fall, and she has been diagnosed with vascular dementia, and I can understand that this must be a worrying time for her, you and your sister.
I can confirm that equity release may be an option to fund her care, because if your aunt is over 60 and her home is worth more than £70,000, it is possible for her to release some of the equity to provide her with capital to pay for care costs.
However, before you consider this possible solution, I would strongly recommend that you and your sister talk to a specialist adviser to understand if it is possible that you both become attorneys for your auntie’s estate, though her capacity to deal with her financial affairs may have to be determined by a doctor.
Here at Equity Release Supermarket we specialise with equity release, and we have a trusted partner called Kinherit, who can help and advise you regarding Power of Attorney without obligation.
Furthermore. as this is a difficult time for you and your sister, it may feel daunting for you to find and understand the best solution for your aunt. Therefore, I would also suggest that you approach My Care Consultant who are independent specialists who can provide you with an end to end service, from helping you find out what you are entitled to from your Local Authority and the NHS, to helping you source suitable care, and explaining the available ways to fund it.
Therefore, once you are comfortable with the funding options and choices for your aunt, you could then talk to one of our professional, whole of market equity release specialist here at Equity Release Supermarket who can help you raise capital from your aunts’ home, should self-funding be partially or fully required.
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
