Assessing property owners

Community care charges in a residential or nursing home

• What happens if I own a property?
• When is the value of a property disregarded?
• What if I have savings above £22,250 and own a property?
• What if I have savings below £22,250 and own a property?
• Do I have to sell my property?
• What happens if my property is jointly owned?
• What happens if I have transferred my property or other capital assets?

What happens if I own a property?

When a person moves into residential or nursing care on a permanent basis, they are assumed to have given up their former dwelling and the value of that property will be included in the financial assessment.

If you move into permanent residential or nursing care the value of your property will be disregarded for the first 12 weeks of your stay. This means that for the first 12 weeks in your new permanent accommodation you will pay a contribution towards the cost of your stay instead of the full cost. After the 12 week period has passed, you will be liable to pay the full cost of your residential or nursing placement.

This rule only applies from the date that you move into your new permanent accommodation. If you sell your property within these 12 weeks, the value of this property will be taken into consideration from the date of the sale.

The rules around how we treat property are complex. Once you have been assessed as needing residential or nursing home care, we strongly advise that you take independent advice before making any decision about what to do with your property.

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When is the value of a property disregarded?

Property can be disregarded for one of the following reasons:

• If your spouse or partner still occupies the home.
• If a member of your family occupying the home is aged 60 or over.
• If a member of your family occupying the home is under 16 and is a child who you are liable to maintain.
• If a member of your family occupying the home is incapacitated.

There are some other circumstances where your property may be disregarded. We will explain this to you in more detail during the financial assessment.

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What if I have savings above £22,250 and own a property?

If you own a property and have savings above £22,250 you will be required to pay the full cost of your stay from the date you move into permanent residential or nursing care.

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What if I have savings below £22,250 and own a property?

If you have savings below £22,250 and own a property you will be liable to pay the full cost of your stay after 12 weeks in permanent residential or nursing care. For the first 12 weeks the value of your property will be disregarded and you will only be expected to pay a contribution towards the full cost.

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Do I have to sell my property?

If you do not wish to sell your property straight away the Deferred Payment Scheme allows you to defer payment of part of the cost of your care until you sell your property or move out of residential care.

You will be required to continue to contribute the amount you were assessed to pay for the first 12 weeks of your stay towards the full cost. If you wish, you can decide to rent or lease your property and add the income you receive to the amount you contribute from your pensions and other income.

We will pay the full cost of your stay directly to the home and place a legal charge on your property to recover the difference between what you have contributed to us and the full cost of your stay once the property is sold.

There are a number of council or housing association leasing schemes where your property can be rented for a fixed term. If you would like more information about these schemes you can contact Haringey Council’s Empty Property Officer on 020 8489 4214.

Renting or leasing your property may mean that you will be able to fund your own care for longer without the need to sell your property.

If you are interested in being considered for the scheme please contact us for more information.

If you do not wish to enter into a Deferred Payment Agreement and do not pay the outstanding balance of your account, the Council can still place a legal charge on your property to recover the full cost of your stay once the property is sold.

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What happens if my property is jointly owned by someone other than a spouse or partner?

You or the person dealing with your financial affairs should return documentation confirming that your property is jointly owned with the financial assessment form.

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What if I have transferred my property or other capital asset to someone else?

Where a property or capital asset has been transferred prior to you moving into a residential or nursing home the circumstances of the transfer will be taken into account.

If we decide that you have transferred your property or capital asset in order to reduce your accommodation charge, we may decide to treat you as still possessing that asset.

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