Specialist advice on using property to fund care

If you own your own property, you may well think that you have too much money for the local authority to fund your care.

In some families, it is important to keep the house in the family. You may have a spouse, partner or other relative who needs to continue to live in the house, whether you stay there or move into residential care.

However, there are situations where your house is not included in the financial assessment. Even if it is, or you still have more than the threshold it doesn’t mean you have to move out or sell the house.

You may be able to apply for the Deferred Payment Scheme, use Equity Release, or rent your home out to generate a capital sum or regular income to pay for your care, or to modify your home.

Equity release can provide you with a regular income, or a cash lump sum. In return, you take out a loan which is paid off when the property is sold. You can transfer the debt to another home in some cases if you downsize.

With this type of mortgage you can roll up all the interest or pay back interest only, leaving only the capital outstanding.

Alternatively, you can choose to sell a proportion of your home in return for the money.

The first type of equity release mortgage is known as a lifetime mortgage, while the second is called a reversion scheme.

Each of these options has its own risks, and should be carefully considered with professional advice.

This is a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration