The Care and Home Inheritance Plan is our unique solution for paying for residential care without selling your home.
If you require care in a care home or residential setting, the Care and Home Inheritance Plan enables you to do this without selling your home. Ownership of the property is never surrendered, and the house can then still form a part of your estate at the end of your life, providing your children, grandchildren, or other beneficiaries with a valuable inheritance.
Within the Care and Home Inheritance Plan, we package up all of your care costs and these are paid back over time using rental income for the property. You’ll never pay out a penny for your comfortable and worry-free care.
You must meet two criteria to qualify:
The CHIP is suitable for you if you already live in, or will soon be moving into a residential care setting.
You must own your home either on a freehold basis, or on a leasehold basis with at least 99 years remaining on the lease.
Time it takes to complete the Care and Home Inheritance Plan and receive care funds
Time it typically takes to sell your home to completion and receipt of cleared funds
Cost | Our Plan | House Sale |
---|---|---|
Needs assessment and care home research | £1,500 * | £1,500 |
Completion / sale fees (including legal fees and VAT) | £8,500 * | £5,097 – £8,032 ** |
Cost of House clearance and refurbishment to letting or sale standard | £0 (repaid from rent) | £10,000 |
Total costs | £10,000 | £16,597 - £19,532 |
Net cash required to cover sale costs and payable on completion | £0 | £16,597 - £19,532 |
* The Care and Home Inheritance Plan refinances these costs so that the Care and Home Inheritance Plan purchaser has no net costs to pay on completion.
** 'Which' assesses the cost of selling the average priced house in the UK (£235,853) at between £5,097 and £8,032 with sale costs of more expensive houses being higher (source).
Care Home fees can be expensive. The Care and Home Inheritance Plan enables you to cover the cost of your care and over time, it generates significant profit for your beneficiaries in two ways:
The rent generated pays the costs borrowed from the Plan to help pay care fees.
Once these costs have been repaid the rent can be paid to the homeowner. This rent can amount to 3% of the value of the property every year.
No one knows how long they will need care in a care home, so we offer customers both Variable and Fixed Plan options.
The Variable Plan pays for the months that the customer requires care in their care home.
The Fixed Plan pays for four years care fees regardless of how long the customer requires the care. If the customer requires care for longer than four years then the fixed plan will cover the additional care fees (beyond 4 years) at no further cost to the customer.
As a Care and Home Inheritance Plan customer, you will be provided with a Personal Financial Plan based on the funds that you require to help pay your care home fees. This will include:
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