Selling Parents House To Pay For Care Fees

[HAVEY]

My dad needs nursing care and we need to sell his house to pay for his care long term. There is no mortgage on the house and me and my brother are his only relatives so the house would be our inheritance. I have enquired about buying the house to release the equity to pay for dads care and i have been told that I could do this via a concessionary mortgage and dad could gift me a percentage of the value which would cover the deposit. I am wondering if anyone has experience of this and what the pitfalls are? my brother isn't keen on me doing this and I don't want to fall out with him but want to understand more about the issues associated with it. Thanks in advance for your help.

[themas]

I've not heard of this. Some issues you may need to look into are:

1. Who has told you this can be done? Is it the local authority people who are dealing with the care home fees etc? If it is not then you would need to be certain they would accept the result.

2. This applies particularly to your Dad gifting you a % of the value. I'd be surprised if the LA people accepted that, as it could reduce the money available to pay for the care fees.

3. What is the "concessionary" mortgage? Who would provide it? What would the terms be?

4. If you do this, what is your brother's position because you would presumably become the sole owner of the house? How & when would he get his share of the value?

[black_cat51]

i don't really understand what the benefit of this would be. In essence you would be paying for your dad's care with a mortgage. What's wrong with him selling the house to someone else?

[starone]

My sister-in-law went into a home and when she eventually died and her house was sold the council took the cost of the home before any other division of the money. As I see it, they have first dibs on any money or property left. Don't know if this is any help. They do try to help by having meetings with interested parties.

[factor-fiction]

Sorry Havey but I don't follow this either. I'm not sure what advantage there is in doing something like this rather than just selling the house- or just leaving the house as his and then letting the care home claim a share eventually

[woofgang]

The only two reasons that I could see to do it would be to benefit from the gifted part of the house equity, but I am not sure that this would be allowable in the circumstances; and a desire to keep this particular house, which no one can comment on but the OP.
Can I ask who suggested this to you?
If I have understood you, this won't save your inheritance and the mortgage will cost you interest which may not be the most cost effective way of funding your father's care