Is Equity Release a solution for expensive care home costs?

Published: 17/06/2011

It’s a sad fact that 1 in 5 of men and 1 in 3 of women will require care in later life¹. Currently, average care home costs vary from £350 - £750 per week for standard accommodation and personal care, to £500 - £1000 a week for nursing care².

If you require residential care and have an estate in excess of £23,250, you can expect to pay these hefty costs yourself, and with further budget cuts and fears costs with continue to increase, the question mark looms over how people are going to be able to afford professional care.

Dr Ros Altmann, Director-General of Saga, shares these fears and predicts in the years to come, more and more people will be affected.

“By 2030, the number of people needing care is going to be 50 per cent higher than it is now.”³

With the current financial climate frosty at best, the majority of us are unable to put aside provisions for the future, prompting many to believe equity release schemes could provide the answer.

Equity Release is a way of freeing up money from your property. The great thing about these schemes is, whilst providing cash flow (either as a one-off, bulk payment or a regular income) you retain the right to continue to live in your property.

When considering an Equity Release plan, it is essential to receive not only professional financial advice via a qualified Equity Release expert, but also to ensure that the legal nature, effects and implications are fully explained by a solicitor’s specialising in Equity Release.

Goldsmith Williams is a founding member of Equity Release Solicitors’ Alliance (ERSA) and can refer you to a panel of specialist Equity Release advisors. Call the GWLifetime team on 0845 373 3737.

Sources
¹ABI: A Brief Guide to Long Term Care Insurance (2010)
²Bupa
³Key Retirement Solutions (June 2011)

Content correct at time of publication