Information

Selling a home to pay for care: Is it always necessary?

‘My aunt has dementia and may need to move into a care home soon. Will she need to sell her home to pay for her care?’ 

Your aunt won’t necessarily have to sell her home to pay for her care – it depends on her circumstances. 

Her local authority will assess her finances to see how much of her care fees she must pay herself. There are situations where her property wouldn’t be included in this financial assessment. Even if it is, there might be alternatives to selling her home. 

Care at home 

While your aunt has a care package at home that meets her needs, this home will not be included in her local authority’s financial assessment.

Many people with dementia live well at home for many years, adjusting their care package as their needs change. 

If your aunt needs to move into residential care, her local authority must ignore her home in its financial assessment when particular people also live there. 

‘Qualifying’ people 

If your aunt needs to move into residential care, her local authority must ignore her home in its financial assessment when particular people also live there. 

This is called a ‘mandatory property disregard’ and it applies while a ‘qualifying person’ lives in your aunt’s home.

A ‘qualifying person’ could be a partner or spouse, or an estranged or divorced partner if they’re a lone parent. It also includes certain relatives who are disabled or aged 60-plus. If your aunt has children aged under 18 who live there, it applies to them too. 

More leeway 

If there isn’t a compulsory reason for the local authority to ignore your aunt’s home in its financial assessment, it may still use its discretion to not include it. 

For example, it might do this if someone has given up their own home to move in with your aunt and care for her. This isn’t guaranteed – it’s the local authority’s choice over whether it provides this leeway. 

Rent or defer 

If your aunt’s home is included in her local authority’s financial assessment, she may need to sell it to pay for her care. However, there might be ways to avoid or delay this. 

Some people can rent out their property and use the rental income to cover care fees. This wouldn’t suit everybody, but it could work for some.

Others make an agreement with the local authority to ‘defer’ or delay paying for care. Costs usually need to be paid back within certain timeframes, with fees and interest added. For some people, this means they don’t have to sell the home, at first or at all. 

You can complain to the local authority if you disagree with it including a person’s home in a financial assessment for care costs.

Where do I go for more information and guidance?

Alzheimer's Society is here to help

• Various financial and legal issues are covered on our website.
• There is information and guidance specific to paying for care and support in England, which is available as a downloadable (PDF) factsheet.
• There is information and guidance specific to paying for care and support in Wales, which is available as a downloadable (PDF) factsheet.
• There is information and guidance specific to paying for care and support in Northern Ireland, which is available as a downloadable (PDF) factsheet.
• Our expert dementia advisers are available seven days a week through the Dementia Connect support line. Our advisers can’t offer you professional legal advice. But they can tell you about organisations that may be able to.

The Money Advice Service

• Self-funding your long-term care – your options

Age UK

• Paying for permanent residential care (PDF version)
• Paying for care and support at home (PDF version)
• Property and paying for residential care (PDF version)

Who can provide me with legal advice?

• Solicitors for the Elderly could help find a solicitor near you with relevant experience. 
• Other organisations, such as Citizens Advice, Community Legal Advice and Disability Law Service, may also be able to help you.

This article was originally published on 31 January 2020 and most recently updated on 14 April 2021.