Hi,

My Grandmother is 90 and her deteriorating health is making it increasingly likely that she will have to move into a residential care home.

She owns the house that she lives in and consequently, I understand that it will be included in any assessment of her assets when the local authority decides whether she will have to pay towards her care.

However, the situation is not so clear...

My Grandmother (and Grandfather when he was alive) decided to exercise the right to buy their council house. However, to do so, my Mother helped them by giving them the deposit for the purchase. In addition, when my Grandfather died, my Mother took over payment of the mortgage and paid it every month for about the last 10 years of the mortgage agreement. She did this by taking cash from her bank account and paying it into the mortgage account each month at my Grandmother's building society.

Consequently, my Mother is now in a bit of a pickle as technically, she has paid into the house but on paper, has nothing to show for it, as the house has always been in my Grandmother and Grandfather's names.

Has anyone ever been in a similar situation? Is the local authority likely to accept that my Mother owns a percentage of the house and disregard that percentage when calculating my Grandmother's total assets?

Would my Mother's bank statements showing the cash being withdrawn and then the mortgage statement showing it being paid-in minutes later be sufficient to demonstrate her interest in the property?

Can anything be done to formalise my Mother's interest in the house?

If anyone can provide any guidance I would be very grateful.

Have you considered asking your Grandmother to sign over the house to your Mother? I know it's a sensitive issue and her deteriorating health will take priority.

I'm not too sure, but I can't see the Local Authority attributing any of the equity in the home to your Mother. Their first and foremost concern will be how to cover the cost of your Grandmothers care.

I worked in a Nursing home a few years ago and the service users are massively overcharged, in my opinion. One of the homes had fees of around £750.00 per week. Alot of that is subsidised (or in some cases, entirely) by the Local Authority. However, where they can recover funds, they will.

You may want to speak to a solicitor about formalising interests in your Grandmother's assets before any evaluation takes place?

Phil

Hi Phil,

Thanks for your reply.

From what I've read, even if we were to transfer ownership of the house to my Mother, the local authority are allowed to look back as far as 7 years and will disregard any such transfer. They will still include the value of the house in their assessment of my Grandmother's assets, even though it is registered in someone else's name as they'll see it as an attempt to avoid paying for care.

I'm wondering whether it would be somehow possible to create a charge over the property in favour of my Mother, not for the full value because she hasn't paid for all of it, but at least equivalent to the percentage she has put in. At least then she would get back what she was entitled to.

I'm guessing it is going to have to be a solicitor job to see whether there is anything that can legally be done.

JRP.

Hi Phil,

 

Thanks for your reply.

 

From what I've read, even if we were to transfer ownership of the house to my Mother, the local authority are allowed to look back as far as 7 years and will disregard any such transfer. They will still include the value of the house in their assessment of my Grandmother's assets, even though it is registered in someone else's name as they'll see it as an attempt to avoid paying for care.

 

I'm wondering whether it would be somehow possible to create a charge over the property in favour of my Mother, not for the full value because she hasn't paid for all of it, but at least equivalent to the percentage she has put in. At least then she would get back what she was entitled to.

 

I'm guessing it is going to have to be a solicitor job to see whether there is anything that can legally be done.

 

JRP.

I am afraid the authorities will take what they are owed for the duration your grand mother stayed in a care home and they will charge full price. The rules has changed anyone with a property and go in a care home will have to pay for their stay privately they get no help from the local authorities what so ever of course what ever money left will then go to their next of kins.

So perhaps choose your care home carefully and expensive can take all her estate to cover their costs.

any more news on this ?