If we have agreed that you need to move into a care home and the value of your property has not been disregarded from your financial assessment, you may be faced with selling your property so you can pay your care home fees.

We recognise that not everyone will have the funds that they need available straight away and will need to sell their property first. We also know it can take many months to sell your property and you may need to move into a care home before it has sold.

In this situation, we may be able to help by agreeing a deferred payment. This is a loan from us, which is repaid once your property has sold. The loan is secured by us registering a charge on your property - similar to a mortgage.

A deferred payment is a legal agreement. We recommend that you read more details about the arrangement in our deferred payments factsheet. We also recommend that you get independent financial advice - you can contact Citizens Advice on the Dorset Adviceline on 03444 111 444 or Help & Care on 0300 111 3303. 

Who deferred payments are for

You may want to apply for a deferred payment if you:

• own a home
• have other savings or capital of less than £23,250
• are moving permanently into residential care
• do not want to sell your home, or cannot afford to pay the full cost of care until it is sold

Before you can apply

To apply for a deferred payment arrangement, you must:

• have been assessed by our team and advised that you need residential care
• be eligible for funding
• be a legal owner of the property
• allow us to place a first charge on your property (like a mortgage)
• provide details of your property insurance
• pay a weekly contribution, based on an assessment of your other income and assets
• understand and agree to the terms and conditions of the deferred payment agreement

Property disregards during the first 12 weeks in a care home

For the first 12 weeks of a permanent move into a care home, the value of your property may be disregarded. If you think you will need a deferred payment we recommend you apply early during the first 12 weeks, while the property is disregarded, to avoid any gaps in the care home receiving payment.

Repaying the deferred payment

The money paid towards your care must be repaid:

• if your property is sold
• when the deferred payment agreement ends, or
• within 90 days of your death

How to apply

If you think you may need to apply for a deferred payment agreement, speak to your social care practitioner who will be able to help with the process.