Brighton & Hove City Council
Financial Assessment Team
2nd Floor Bartholomew House
Brighton BN1 1JE
Deferred Payments Scheme, Roya
If you are residing in a care home your local council will be required to charge you
for your care and accommodation in accordance with an assessment of your
financial resources. If you are staying in residential care permanently and own a
property then in some cases this may need to be sold to help pay for your care.
However, under a scheme called the Deferred Payments Scheme you may be able
to obtain a loan from your council so that your home does not have to be sold.
The key eligibility criteria for acceptance under the scheme are as follows:  You entered a care home on a permanent basis on or after 9th April 2001.
 You own your property but do not have other assets exceeding £23,250.
 You were still living in your property at the point of your admission to the care
home.
 You do not wish to sell your property or cannot make arrangements to do so
immediately.
 Your property is of sufficient value to cover the anticipated cost of your care
upon an indefinite basis (this may not be the case if the property still has any
outstanding mortgages against it).
 Any outstanding mortgages do not prevent the council placing a secure legal
charge against the property (see below).
Please note that if you or your property cannot fulfil the above criteria but you would
like to consider participating in the scheme there may be ways that the council can
still help you without your property being sold. You would need to discuss this with
the member of staff carrying out your financial assessment.
If you wish to take advantage of the scheme you will need to agree to the council
placing a legal charge on your property (this is like a mortgage). The council will
then be able pay fees to your care home to ensure that your care is paid for. You
will still have to pay a contribution towards the fees from your available income but
the council will assist you in meeting whatever shortfall in fees might still remain
after your contribution has been paid. However, the council’s charge must have
equal priority with any existing charges against the property or the repayment of its
loan may not be adequately secured.
The care fees paid on your behalf must be repaid in the following circumstances:
 Immediately if the agreement is cancelled.
 Immediately if the property is sold for any reason.
 Within 56 days after your death. If the money owed to the council is not repaid
within 56 days then simple interest will be added from that point at a rate equal
to 4% above the current base lending rate. The beneficiaries of your estate may
then have to sell or re-mortgage the property if the council cannot be repaid
otherwise.
 Within 56 days of the agreement being ended for other reasons, such as when
the funding is taken over by Continuing Healthcare. Again, any amount still
outstanding after 56 days will be subject to simple interest at the above rate.
Please note that if CHC is awarded retrospectively then interest may be
backdated if the 56 have already elapsed.
You may also take advantage of the scheme if you want to sell your property but it
will take some time until it is sold. The council will again meet any shortfall in fees
that might remain after you have contributed your available income and repayment
must be made from the sale proceeds upon completion.
There are some things you may want to think about before considering the scheme,
such as:  A legal charge will be secured against your property giving the council the right
to reclaim the loan against the eventual sale. You will not be able to sell the
property or transfer ownership until the amount owed to the council has been
repaid.
 You will need to maintain the empty property and this would include paying for
things like buildings & contents insurance, heating to prevent damp and frost,
and any maintenance or ground rent.
 If you rent out the property the council will expect the income to be contributed
towards your care home costs with your other available income, thus reducing
the amount to be repaid when your property is sold.
 If you do not decide to sell your property, you may not be eligible for Pension
Credit. If you chose to put the property on the market, then Pension Credit
should be paid in accordance with your other financial circumstances. This is not
repayable upon the sale of the property.
 After you have died the council will still need to be repaid even if there are
people living in the property, including family members. Therefore, it is always
advisable that anyone living in the property pays rent as this will reduce the
amount to be repaid in the future.
 The council charges a standard administration fee for setting up the deferred
payment agreement (including Land Registry fees) of £100. This is payable at
the start of the agreement.
The person who is carrying out the financial assessment will be able to explain the
terms of the scheme in more detail and answer any further questions that you may
want to ask. However, before deciding whether to sign a Deferred Payments
Agreement it would always be advisable to talk to members of your family or seek
independent financial or legal advice.