Funding residential care

[northender]

Basically my dad has been in residential care since January and has had a SS needs assessment which confirms that he needs to be there long term. Mum is still living in their bungalow and neither of them have savings above the threshold.....BUT they have a rental property (owned jointly) which has a value well in excess of the threshold so ultimately, unless he ends up at a later stage qualifying for CHC funding, he will have to pay for his care. He has state pension, AA and half the rental income which he can pay but that is less than half the monthly fees.
Do we have to sell the property as soon as possible?
It is likely to be a complex process (at least a year) due to the sitting tenants and some legal and logistical complications. A concern is that the house has been rented for 20+ years by a couple who are now elderly. Mum will do all she can not to serve notice to them to leave. Will she ultimately be forced to do it?
I totally understand that dad's care has to be paid for but if the house has to be sold, there will be a gap before any money comes in.
Is there any way we (I) can sign something to say that the shortfall will accrue until the house sale goes through or to have any delay due to the potential hardship to the renters?

I'd be grateful for any advice or others' experiences. I was just starting to feel things were settling down but having to take on the sale of the house would be a part time job in itself sigh

Has the financial assessment by the local authority been completed?

The LA could put a charge on either house for delayed payment of fees (plus interest)

Sometimes the local authority will effectively’loan’ to pay fees based on the value (or half value) of the rental property; but essentially yes the rental property is an asset which takes both of them well over the threshold and finances rather than ethics is all the LA are concerned with at this point unfortunately. Sorry - social funding is (as in all areas) very much lacking nowadays.

The council will not do a deferred payment scheme on a second home.
They will not offer a deferred payment scheme on the main house either as the other house would be included as an asset so will be above the threshold of £23500.

@Iloveeverycat well they would have to for the second home as it’s got a tenant (so will take a while to sell with vacant possession) and they have to disregard the main house as mum is still living in it.

Government rules stipulate that a Deferred Payment can only be agreed upon your main or only home.

Thanks for all your responses. The financial assessment hasn't been done yet, but I know we'll have to fund his care due to his assets. I spoke to a financial assessor today who was very blunt & just said there is no flexibility, if you don't have the money in the bank and haven't sold the rental it's not our problem but you will have to find the money. I had asked what I thought was a reasonable question and was quite shocked at the manner she spoke to me (I was already feeling fragile!). The social worker was more reassuring and said not to worry until the financial assessment has been done and that there can be flexibility.
12 months ago I was going to see my parents regularly, giving some general support with household stuff and medical appointments. Now I'm running all their finances and admin including the rental property, sorting all their health and social services, (neither has the capacity to make informed decisions about their care), trying to hold down a stressful job and run my own house and life. The decline has been dramatic and I'm exhausted! I know from having read threads on here that I'm not alone.

If they do play hardball then mum will have to take out a loan to pay the interim fees until we sell. I wouldn't mind if we were trying to avoid paying but I'm just saying I need time to sell!

It’s very difficult. At some point the rental property will most likely have to be sold anyway. So although I know it’s going to be extremely difficult could you start that process so at least you can show social services that you are doing what you can to release funds, and you are not trying to hold onto assets to avoid paying. They then be a bit more flexible

I would have thought with long term tenants you'd sell with sitting tenants? While this would affect the value it might also speed up the sale.

Ok see what loans your mum can get whilst the social worker clarifys what suppot if any the council can offer. Id see if i can keep the tenants as their rent could make a small contrubution to the care home fees, also with the changes in housing law it might not be so easy to end their tenancy.

If you can demonstrate that the second house is up for sale , your local authority may have some flexibility, it's unlikely that the local authority will agree that it will take a year for the house to go up for sale though.
It also sounds like you need to apply for deputyship of their finances (if power of attorney hasn't already been put in place) as you'll find it increasingly difficult to deal with the finances without one or the other.

Does Dad not have any savings, seems odd to have a second home without any liquid assets squirrelled away.

Would Mum consider downsizing to release funds from the main residence?

If no other option, then I would let the tenants know sooner rather than later so they can start looking for somewhere new and you can crack on with the second home sale.

OP if the rental is owned jointly with Mum and Dad then only 50% of its value can be included in the financial assessment. Also their ARE options for the period in which the house gets sold, many care homes will accept payment on completion although be aware they will apply an additional fee retrospectively for this. Or the council could make payment until house sold, again they may apply a fee for this or put a legal charge on the house until its sold.is your dad in receipt of attendance allowance?

Go to AgeUK website and look at their factsheets - accurate information to be found there.

I can only speak from my own experience, but my cousin had to pay towards her mother's care herself for a while because my aunt could not get funding because she had her house, despite the fact that said house was on the market, had been for a while, and cousin was doing everything in her power to get it sold.

Based on this, I would imagine that your mum's rental property would still be an asset that would count, and if she couldn't use it right away because she had to give her tenants notice and wait out their notice period, tough her problem! Based on this I would say start their notice period asap! However I could be wrong because it's lived in by others too, and because it's jointly your dad's.