# A Guide to Selling a Property to Pay for Care Fees

## Introduction
When a loved one needs residential care, the financial implications can be daunting. Selling the family home to fund care is a significant decision, and we're here to help you navigate it with sensitivity, clarity, and practical support.

## Understanding Care Fee Funding (England)

### The Means Test
- Local authorities carry out a financial assessment to determine how much (if anything) you need to contribute towards care costs
- **Upper capital limit: £23,250** — if your assets exceed this, you pay the full cost of your care ("self-funding")
- **Lower capital limit: £14,250** — below this, the local authority funds your care (but your income still contributes)
- **Between the limits:** You contribute a tariff amount based on your capital
- **Note:** These thresholds have been discussed for reform for years. Always check the current figures.

### Does the Property Count?
The property IS included in the means test UNLESS a "qualifying person" still lives there:
- Your spouse or civil partner
- A relative aged 60 or over
- A relative who is disabled
- A child under 18 who you're responsible for

If a qualifying person lives in the property, it's disregarded — the local authority cannot include its value in the means test.

### The 12-Week Property Disregard
- When someone first enters permanent residential care, the local authority MUST disregard the value of their property for the first 12 weeks
- This gives the family time to make decisions without immediate financial pressure
- During this period, the local authority covers the care costs (subject to recovery later)

### Deferred Payment Agreement (DPA)
- If the property must be counted but you don't want to sell immediately, the local authority MAY offer a DPA
- The council pays the care fees and places a legal charge (like a mortgage) on the property
- The debt is repaid when the property is eventually sold (or from the estate after death)
- Interest is charged (at a rate set by the government)
- Not all councils offer DPAs readily — you may need to request one formally

## When a Sale is Necessary

### Common Triggers
- No qualifying person lives in the property
- Assets exceed the upper capital limit
- No DPA in place (or the family prefers to sell)
- The DPA debt is being settled

### Power of Attorney
- If the person in care lacks mental capacity, a registered **Lasting Power of Attorney (LPA)** for Property and Financial Affairs is required for the attorney to sell
- If no LPA exists, the family must apply to the **Court of Protection** for a deputyship order — this is expensive (£1,000–£5,000+) and slow (6–12 months)
- **Lesson:** Set up an LPA while the person still has capacity. It costs just £82 to register.

### Selling the Property
- The attorney (or deputy) acts as the seller
- Instruct an estate agent experienced in these situations
- The property may have been unoccupied — check insurance, condition, and security
- Price realistically — a quick sale may be needed, but never undersell
- All proceeds go to funding the care (via the local authority or directly to the care home)

## Practical Tips
1. **Get specialist advice early** — an independent financial adviser (IFA) specialising in later-life planning can explore all options (including equity release, care annuities, and NHS Continuing Healthcare)
2. **Check for NHS Continuing Healthcare (CHC)** — if the person's primary need is health-related (not social), the NHS may fund all care costs. Many families don't know to ask.
3. **Challenge the assessment** — if you disagree with the local authority's assessment, you have the right to appeal
4. **Keep records** — document all care costs, property expenses, and communications with the local authority
5. **Empty property costs** — council tax (potentially with a premium), insurance, maintenance, utilities. Factor these into your timeline.

## How We Help
- Sensitive, patient approach — we understand the emotional weight of this decision
- Realistic market appraisal tailored to your timescale
- Experience with properties in varying conditions (often unoccupied for months)
- Clear communication with all parties: family members, attorneys, solicitors, care homes
- Guidance on the practical steps of preparing the property for sale