If we go ahead and take out an equity release scheme, what happens if we then need long term care?
In the case of all Safe Home Income Plan (SHIP) approved equity release schemes, all applicants retain the right to live in their property until the last applicant either dies or goes into permanent long term care. Then the property is either sold by your family or executor, in the case of a lifetime mortgage equity release scheme, and the loan repaid and any surplus kept either by you to pay for your care or your executor to form part of your estate.
In the case of a home reversion plan, the home would generally be sold by the reversion company and any value of interest you retained in the case of a partial home reversion plan, would be returned to you or your estate.
Under either type of equity release scheme, the property would only need to be sold when the sole surviving applicant needed to go into permanent Long Term Care. There would be no need to sell it when the first applicant needed to go into care, nor is there any need to sell it all the time you receive long term care at home. Indeed equity release schemes can be a very useful way of helping people maintain their own independence, paying for adaptations to your home or to pay for additional carers.
If you are thinking of taking out an equity release scheme towards paying for long term care at home, please talk to us on FREEPHONE 0800 970 4883 as not only are we equity release specialists, but our Principal Keith Hargraves is an experienced Long Term Care adviser.