Equity release to pay for home care

5 August 2020

Care thrown into the spotlight 

If we didn’t know it already, the coronavirus crisis has made us realise it: carers are heroes. The pandemic has put the role of care and carers centre stage, spotlighting just how vital the service they provide is. The jobs they perform for the people they help are diverse: laundry, cooking, reporting and sorting home repairs, food shopping and night care are all examples of just a few of the ways in which home carers help on a daily basis. 

During the COVID-19 pandemic, the demand for social care has risen and to keep up with demand, many carers have been going above and beyond. In May, the BBC reported on a group of care providers who had moved in with residents after some tested positive for the virus, a true testament to their commitment to those they care for. While the Metro reported on a carer who: ‘[left] immunocompromised husband for three months so she can help with coronavirus crisis’, moving away from her family to allow her husband to shield while she continued to help her clients. 

These are just two examples of the selflessness and bravery of carers that has been brought to light during the pandemic. Cases such as these have stimulated discussions within many families about planning for the future and whether a home carer is something that you – or a loved one – could benefit from, either now, or in the near future. 

The advantages of domiciliary or home care 

There are many benefits of domiciliary or home care, with a few key ones being: 

The cost of domiciliary, home and live-in care

The Money Advice Service advises that home care will cost an average of £14,000 a year, for 14 hours of care a week. Obviously, this is just an average and depends on where you live; if you require more or less care, the fees would adjust accordingly. While there is support available to contribute to these costs depending upon your personal circumstances, as outlined by Age UK, it is likely that you will have to contribute a significant amount towards this.

If you’ve got sufficient savings, these would normally be the most sensible way of paying for any care you may need to enable you to continue living independently. But if you haven’t got enough put by, you may wonder how you will pay for the support you need to stay in the home you love. 

How equity release can help pay for care in your home 

Equity release could be a viable solution for paying for home care, depending on your personal circumstances. It enables you to release some of the equity in your property tax-free to pay for the support you need. 

There are different types of equity release schemes available, but key features include:

The importance of expert equity release advice 

Deciding to release equity from your home to pay for care so you can carry on living in it is a big decision. It’s important to find an honest expert who will give you objective advice to help you decide if this is a good financial solution for you. 

Our expert equity release advisers will always take time to understand your personal circumstances. We also encourage your family members to be involved in the process, so they understand what you are doing and the potential implications for them,” explained Jan Johnson, founder and director of 55Plus Equity Release. 

For many, COVID-19 has brought to light home care as a great solution for us or our loved ones. Releasing equity is one solution that could enable you to stay in your own home while affording the home care that you need to continue living independently. 

During the current coronavirus outbreak, we are conducting these over the phone or by video call.

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