Nearly half a million people live in nursing homes in the UK.
In some cases, their children need to help manage their financial affairs.
This often includes selling their home.
Read on to learn more about how this works.
Reasons for selling homes of parents in nursing homes
Funding care
It costs money to put your parent into a nursing home.
A typical price in the private sector is around £1,250 per week or £5,000 per month.
If you can’t afford this, the equity from the house could cover payments for a period.
There is no need for home
If your parent was the only person living in a home, it might simply not be needed.
Especially if it’s far away.
When no one wants to take ownership, rent it out, live there, or use it as a holiday home, selling may be the best option.
Leaving it empty might leave it vulnerable to squatters, which can make it much harder to sell later on.
The property is in terrible condition
It’s common for a house to be in bad condition by the time a parent moves into a nursing home.
This is because your parent may not have the ability to look after it. Fixing it up so it’s habitable could be more trouble than it’s worth.
If it’s close to derelict, selling to a cash buyer or auction house could save you some hassle.
Selling a parent’s home on their behalf
You can sell a parent’s house on their behalf if you’ve got a Lasting Power of Attorney (LPA).
The highest-level LPAs grant you the right to handle their property and financial affairs.
You get an LPA if your parent agrees to it and signs the necessary document.
It’ll also need to be witnessed by an impartial third party, who can confirm that your parent isn’t coerced into it.
Keep in mind that there are different levels of LPA. And not all of them give you the right to sell a house on their behalf.
Selling a parent’s home if they’ve got dementia
You can sell a parent’s home if they’ve got dementia if you’ve got a lasting power of attorney.
An independent expert will need to determine whether your parent has mental capacity.
If they do, then they can sign the documents needed to sell the property themselves.
Although, this is rare when a dementia diagnosis has been received.
If your parent has dementia but you don’t have an LPA, then you can apply to obtain one. Or the court can appoint a deputy to act on their behalf.
Deferred payment agreements
Some local authorities will agree to a deferred payment agreement when you’re trying to admit your parent into a nursing home.
This is a type of loan that’s secured against the property, at a fixed interest rate, which is used to pay the care costs.
This is useful because the deferred amount doesn’t need to be repaid until the house is sold.
You thus can enter your parent into a nursing home right away, without having to wait several months for the house to be sold.
You could also find that nursing homes will consider deferring your need to make payments, until after the house is sold.
This could involve certain conditions, such as higher payments further down the line, along with a set timeframe within which you must sell the house.
Property disregard
The term property disregard means that the value of your house isn’t considered when deciding whether you can afford to pay for nursing home fees.
This could be because:
- Someone else is still living there as their main residence.
- Your parent will only be in the nursing home for a temporary basis
- It’s being sold to purchase a more suitable property or to pay for care fees.
Or something else. Different local authorities and UK countries might have different rules.
When someone becomes a permanent resident in a care home, their home is disregarded for the first 12 weeks of their stay.
However, after this point, you may be required to sell it to cover care home fees.
Parents in a nursing home when they still own a house
Parents can still own a home when they’re in a nursing home.
If your parent is in a public nursing home, then the local authority may disregard the house as part of its calculations for affordability.
If your parent is in a private nursing home, then it’s entirely up to you how you pay for the fees.
If you can cover these costs without needing to sell the house, then you’re usually free to do so.
Tips for selling home when a parent is in a nursing home
Ensure you have the necessary documentation
You need to confirm that you have the legal right to sell your parent’s house.
Otherwise, you’ll be breaking the law, and the repercussions could be severe.
A lasting power of attorney is the primary document that enables you to do this.
There are different levels of this document, so ensure you have one that allows you to sell the house.
If your parent is of sound mind, they may also need to sign off on this sale.
You will also need the regular documents for selling a home.
Speak to everyone affected
You should communicate with the other people impacted by this sale. This usually includes family members, such as siblings, aunts, and uncles.
Anyone with a sentimental attachment to the house could also want to know.
You should also communicate regularly with the care provider and local authority.
This helps ensure everyone is on the same page and no laws are being broken.
Clarify your options with the local authority and care provider
Maintain an open line of communication with the care provider, and the local authority.
Determine whether property disregard is an option, as this could alter your course of action.
A deferred payment agreement may also be beneficial.
Consider your method of selling
If the house is in disrepair, it may require extensive work before you can sell it on the open market.
Otherwise, mortgage companies could refuse to lend to it. Whether the fixes are worthwhile is up to you.
Using an estate agent isn’t your only option. You could also use a cash-buying company, who will buy the house in any condition.
The same usually applies to property auctions.
