If you are a homeowner who is looking to access some of the value of your property without having to sell it, then a local authority deferred payment agreement may be worth considering. This type of agreement is designed to help individuals who may require additional funding to pay for care home fees or other expenses while allowing them to keep their home.
What is a local authority deferred payment agreement?
A local authority deferred payment agreement is a type of loan provided by the local council to help those who require financial assistance with care home fees. Essentially, the loan covers the cost of the fees, allowing the individual to stay in the care home, while the loan is repaid upon the eventual sale of the property.
How does it work?
When you agree to a local authority deferred payment agreement, the council will essentially pay the care home fees for you, with the agreement that they will be repaid upon the eventual sale of your property. To qualify for this type of agreement, your local council will assess your income and assets to determine your eligibility.
Once you have been assessed and approved for a local authority deferred payment agreement, the council will place a legal charge on your property, which will allow them to recoup the cost of the loan when your property is sold. This means that you will not have to repay the loan until you choose to sell your property, or until your estate enters probate if you pass away.
What are the benefits of a local authority deferred payment agreement?
One of the main benefits of a local authority deferred payment agreement is that it can provide a lifeline for individuals who require financial assistance while also allowing them to keep their home. This type of agreement can be a great option for those who are unable to access other types of funding or support, as it is based on the value of your property rather than your income or credit score.
Another benefit of a local authority deferred payment agreement is that it can provide peace of mind during a difficult time. Knowing that you will be able to stay in your care home and receive the support you need can provide a great deal of comfort, especially for those who may be dealing with health or mobility issues.
In conclusion, a local authority deferred payment agreement can provide much-needed financial support for those who require care home funding. If you are considering this option, it is important to research the details and eligibility requirements thoroughly, and to speak with a financial advisor or legal professional to ensure that you fully understand the implications of this type of agreement.
