A unique way to help fund care home fees without having to sell your home.
The Care Plan Payment Option is suitable for you if
- You are aged 80 or over
- You are single, divorced or widowed (without a spouse or civil partner)
- You are the sole owner of a property
- You do not have the available cash to buy a Partnership Immediate or Deferred Care Plan but do own a property
How the Care Plan Payment Option works
The Care Plan Payment Option enables you to secure a loan against your property to buy a Partnership Immediate or Deferred Care Plan.
This means the payment of your care home fees can start as soon as its needed without having to wait for cash to become available through the sale of your property. It also means that your property is retained should you be able to return home, perhaps as a result of improvements in your health.
The amount you can borrow is based on your life expectancy, a valuation of your property and your age and gender.
Paying for the Care Plan Payment Option
- You can repay the loan in full or partially at any time without incurring an early repayment charge
- There is a minimum repayment amount of £5,000
- There will be a Closing Administration Charge of £200 when the loan is repaid in full.
- If you have a debt secured on your property, this must be repaid before taking out the Care Plan Payment Option
Should you die before repaying the loan, the outstanding loan balance owed will need to be paid, usually from the sale of your property.
If your property is sold for more than the outstanding loan balance, the difference will be paid to your estate, once sales costs have been deducted.
If your property is sold for less than the outstanding loan balance, the shortfall will not have to be made up as it is protected by the 'No Negative Equity Guarantee'. This means that the repayment amount (including accrued interest and charges) will never be greater than the sale proceeds - no matter what happens to house prices.