Making the decision to move a parent into a care home is never easy. The emotional weight is often compounded by a maze of financial and legal practicalities, with the most significant being how to fund the cost of care.
For many families across the UK, their parent’s property represents their main asset. And when care costs can exceed £50,000 per year, selling that property becomes not just an option, but a necessity.
If you’re facing this situation right now, you’re not alone. And whilst the journey ahead might feel overwhelming, this guide will walk you through exactly what you need to know — from understanding care funding rules to choosing the quickest, most stress-free way to sell.
Understanding Care Home Funding in the UK
Before diving into the selling process, it’s crucial to understand why you might need to sell your parent’s home in the first place.
The Means Test: Who Pays for Care?
When someone needs residential care, local authorities conduct what’s called a ‘means test’ — essentially a financial assessment to determine who foots the bill.
Here’s how it works in England:
If your parent has capital above £23,250 (including savings, investments, and property), they’re expected to self-fund their care entirely. No help from the council.
If capital falls below £14,250, the local authority contributes the maximum amount towards care costs.
Between £14,250 and £23,250, your parent contributes on a sliding scale through something called ‘tariff income’ which means they must pay roughly £1 per week for every £250 of capital between these limits.
Now, here’s the kicker:
The family home is included in this assessment. Unless, that is, certain people still live there — like a spouse, partner, or qualifying relative. For most adult children managing their parent’s care, this exemption doesn’t apply. You can read the full details on the NHS page on paying for care.
The Reality of Care Costs
Let’s talk numbers. Because understanding the true cost of care explains why quick access to funds becomes so critical.
The average residential care home in the UK now costs around £800 per week. That’s over £41,600 per year.
Need nursing care? The average jumps to £1,100 per week. That’s more than £57,200 annually.
These aren’t luxury 5-star facilities. These are standard care homes providing essential support for vulnerable adults. When you’re looking at bills of £3,500+ per month, waiting months for a house sale simply isn’t an option.
What About a Deferred Payment Agreement?
You might hear about something called a ‘Deferred Payment Agreement’ (DPA). This is essentially a loan from the council. They pay the care home fees on your parent’s behalf, and the debt is secured against the property.
This can provide a temporary solution, but it’s not free money. Interest accrues on the loan, and the council will place a legal charge on the property. The debt must be repaid in full, usually within 90 days of the person’s death, which means the house will have to be sold eventually anyway to pay for care.
While it can bridge a short-term gap, it can also complicate the eventual sale as there needs to be a legal process to release the charge before the property can be sold.
The Legal Authority to Sell: Do You Have the Right?
Here’s something many families don’t realise until it’s too late:
You can’t just sell your parent’s house because you’re their child.
Even if they’ve asked you to handle it. Even if everyone agrees it’s the right thing to do.
You need legal authority. And getting that authority depends entirely on your parent’s mental capacity.
If Your Parent Has Mental Capacity
This is the simpler scenario. If your parent can understand the decision to sell and its implications, they can handle the sale themselves (with your support, of course).
They’ll need to sign all the paperwork and make the decisions. But at least the process can move forward without additional legal hurdles.
If Your Parent Lacks Mental Capacity
This is where things get complicated.
Option 1: Lasting Power of Attorney (LPA)
If your parent previously set up a Property and Financial Affairs LPA whilst they had capacity, you’re in luck. As the named attorney, you can act on their behalf to sell the property.
But here’s the catch: A Health and Welfare LPA isn’t enough. You specifically need the Property and Financial Affairs version. Without it, you can’t touch the house. If you need to set one up, you can find official guidance on the GOV.UK Power of Attorney page.
Option 2: Court of Protection
No LPA in place? You’ll need to apply to the Court of Protection to become a ‘deputy’ for property and financial affairs.
Fair warning: This process is neither quick nor cheap.
Applications can take 4-6 months to process, sometimes longer. Court fees alone start at £371, plus ongoing supervision fees. Add solicitor costs, and you’re looking at thousands of pounds before you’ve even listed the house. All whilst care fees keep mounting.
Your Selling Options: A Realistic Comparison
Right. You’ve got the legal authority. You understand the financial pressure. Now comes the big decision:
How do you actually sell the house?
Let me break down your two main options — and explain why one makes far more sense when care fees are involved.
Option 1: The Traditional Estate Agent Route
We all know how this works. You get three agents round for valuations. Pick one. They stick a board outside and list it on Rightmove.
Then you wait. And wait.
