The Question
My parents own their own home but recently my Dad become unwell and now needs a carer. I think he may eventually need to go into a care home.
It’s looking like my parents won’t be entitled to any state support to cover the cost of the carer. However, conversely, they cannot afford the carer from their income nor could they cover the cost of a care home. It’s too expensive for us as a family to cover as myself and my siblings are all supporting our own families, have dependents and are struggling pay our own mortgages some months.
I see no other option for them but to release equity. Please could you advise us on what type of equity release plan would suit this situation and whether my parents would qualify considering one of them is going to be in care.
Dad is 86 and mum is 78. They live off my Dad’s final salary pension and also receive full state pension each. Their house is probably worth around £400,000.
Mark’s Answer
Thank you for your question and firstly, I am sorry to read that your dad is not well, and he needs care.
Like many families facing the same uncertainty with elderly parents who need care, specialist guidance and advice is recommended at this early stage to ensure that your dad gets the care he needs and your mum and your family get the support and financial support they need at this difficult time.
Equity Release is certainly an option and solution that many customers use to pay for care costs, and plans which can provide an initial lump sum and cash reserve facility to drawdown further capital in the future is likely to be one of the flexible solutions to help pay for care costs.
Furthermore, the plan would be in joint names and could continue if your dad had to leave his home for long-term residential care.
However, before we consider the solution and provide capital, it is very important to understand what benefits and financial support could be provided to firstly pay for the care and to pay the carer.
Therefore, at this stage, I would recommend that you approach your local authority to consider a care assessment – https://www.gov.uk/apply-needs-assessment-social-services, secondly I would recommend that you visit a useful website called My Care Consultant https://mycareconsultant.co.uk who provide a fully independent service that helps you from sourcing suitable care and working out what you are entitled to, to signposting you to relevant professional services.
As noted, once you have established what is available to you and your family, and what financial support you may be entitled to, Equity Release could provide the flexible funding solution that you need, and one of our expert, whole of market specialist advisers will help you find a bespoke solution for your requirements.
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
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