Mum in Care Home - LA want unrealistic valuation of home
Discussion
Mum has been in a care home since Feb 2020. Her house had been left empty until we know what we could do with it.
The LA has now agreed to only take 50% of the value (My sis, me and late brother own the other 50% left my deceased father).
We sent in a valuation from an estate agent who valued it at £165k. The council sent it back saying they do not accept the valuation and say we are £35k undervalued.
They are obviously looking at current advertised prices. It is a semi-detached two bedroom property. I have gone onto Rightmove Sold Prices and the £165k is very accurate to bungalows that sold in the last 18 months. Three bed props are nearer the mark. We have sent these to the LA.
Is there anything else we can do?
The LA has now agreed to only take 50% of the value (My sis, me and late brother own the other 50% left my deceased father).
We sent in a valuation from an estate agent who valued it at £165k. The council sent it back saying they do not accept the valuation and say we are £35k undervalued.
They are obviously looking at current advertised prices. It is a semi-detached two bedroom property. I have gone onto Rightmove Sold Prices and the £165k is very accurate to bungalows that sold in the last 18 months. Three bed props are nearer the mark. We have sent these to the LA.
Is there anything else we can do?
Do you intend to keep it and pay the LA their half? Then you are depending on an unrealised valuation at the mercy of agents and their estimating powers. Since the agent is working in your favour get a couple more agents to value and if they're similar go back to the LA better armed for a negotiation. Which is what this is.
Simplest option would be to sell it and give them their cut.
Simplest option would be to sell it and give them their cut.
Edited by Oldandslow on Friday 21st May 14:22
When my M-i-L was admitted to a care home for dementia sufferers with mobility problems - i.e. expensive. We let her house and topped up the rent with attendance allowance and whatever other benefits she was due, and just about paid the bill. Even if it falls short it's worth making up the difference until inheritance as the value will almost certainly appreciate. It's mercenary, I admit, but reality is necessary.
plasticpig said:
I would suggest you seek legal advice from a solicitor who specialises in care home fees. It’s not necessarily as simple as saying it’s 50% of the houses market value. Not many people are interested in buying 50% of a house so the actual value may be a lot lower.
We've done this. We have spent loads doing work on the house but not kept any receipts. We haven't used dodgy characters but just got the jobs done and paid cash. Didn't see any reason to keep or ask for receipts. The LA now say they will charge for 50% of any work done (which I expected).
My sister is buying mum's half. A low estimation would work in her favour but we have had two so far - both around the same value. Thing is though - advertised price isnt sold price.
Edited by Fastchas on Friday 21st May 14:55
Fastchas said:
We've done this. The original will of dad's was changed with a Deed of Variation when he died in 2013, so we feel lucky the LA hasn't challenged it.
We have spent loads doing work on the house but not kept any receipts. We haven't used dodgy characters but just got the jobs done and paid cash. Didn't see any reason to keep or ask for receipts. The LA now say they will charge for 50% of any work done (which I expected).
My sister is buying mum's half. A low estimation would work in her favour but we have had two so far - both around the same value. Thing is though - advertised price isnt sold price.
The council would need to seek the agreement of all the other owners of the property to have any work done. Likewise I don’t believe the council can force the other owners of the property to sell their share. Thus my comment about 50% of the property not being worth 50% of the market value.We have spent loads doing work on the house but not kept any receipts. We haven't used dodgy characters but just got the jobs done and paid cash. Didn't see any reason to keep or ask for receipts. The LA now say they will charge for 50% of any work done (which I expected).
My sister is buying mum's half. A low estimation would work in her favour but we have had two so far - both around the same value. Thing is though - advertised price isnt sold price.
plasticpig said:
Fastchas said:
We've done this. The original will of dad's was changed with a Deed of Variation when he died in 2013, so we feel lucky the LA hasn't challenged it.
We have spent loads doing work on the house but not kept any receipts. We haven't used dodgy characters but just got the jobs done and paid cash. Didn't see any reason to keep or ask for receipts. The LA now say they will charge for 50% of any work done (which I expected).
My sister is buying mum's half. A low estimation would work in her favour but we have had two so far - both around the same value. Thing is though - advertised price isnt sold price.
The council would need to seek the agreement of all the other owners of the property to have any work done. Likewise I don’t believe the council can force the other owners of the property to sell their share. Thus my comment about 50% of the property not being worth 50% of the market value.We have spent loads doing work on the house but not kept any receipts. We haven't used dodgy characters but just got the jobs done and paid cash. Didn't see any reason to keep or ask for receipts. The LA now say they will charge for 50% of any work done (which I expected).
My sister is buying mum's half. A low estimation would work in her favour but we have had two so far - both around the same value. Thing is though - advertised price isnt sold price.
thats the point i'm making above, if you start silly buggers like that, they will put a charge on the house such that when it is sold they will get 50% of the proceeds. but inflation will likely have increased the value of the house in the mean time, so you would end up paying more...
Fastchas said:
Thing is though - advertised price isnt sold price.
You've said that a couple of times but right now houses are often selling for more than asking. In some places prices have jumped a lot since the market opened up again so looking back 18mths may be giving a distorted picture.Of course the market may soften again anytime soon, and it could be different where you are.
Greg_D said:
i get what you're saying, but if they were (for example) to put a 50% charge on the property when it is sold, then you would end up paying them more money in the long term...
Not quite the same situation as the OP but in the case I know of where 50% of the property is in a trust the solicitors acting for he family argued successfully that 50% of a house is worth nothing. The solicitors used have done this many times. It’s pretty complex and has to do with the rules on how property value is to be assessed by the council: https://www.ageuk.org.uk/globalassets/age-uk/docum...
Age UK said:
This means the local authority must base its valuation on the sale value of your beneficial interest to a ‘willing buyer’, on the open market, at the time of your financial assessment.
They should not simply assess the value of your property as a whole (or equivalent properties), divide up the shares owned and say this is the true value of your beneficial interest. The value of your beneficial interest depends on how attractive it is to purchase. This can include a nil value.
They should not simply assess the value of your property as a whole (or equivalent properties), divide up the shares owned and say this is the true value of your beneficial interest. The value of your beneficial interest depends on how attractive it is to purchase. This can include a nil value.
plasticpig said:
Greg_D said:
i get what you're saying, but if they were (for example) to put a 50% charge on the property when it is sold, then you would end up paying them more money in the long term...
Not quite the same situation as the OP but in the case I know of where 50% of the property is in a trust the solicitors acting for he family argued successfully that 50% of a house is worth nothing. The solicitors used have done this many times. It’s pretty complex and has to do with the rules on how property value is to be assessed by the council: https://www.ageuk.org.uk/globalassets/age-uk/docum...
Age UK said:
This means the local authority must base its valuation on the sale value of your beneficial interest to a ‘willing buyer’, on the open market, at the time of your financial assessment.
They should not simply assess the value of your property as a whole (or equivalent properties), divide up the shares owned and say this is the true value of your beneficial interest. The value of your beneficial interest depends on how attractive it is to purchase. This can include a nil value.
They should not simply assess the value of your property as a whole (or equivalent properties), divide up the shares owned and say this is the true value of your beneficial interest. The value of your beneficial interest depends on how attractive it is to purchase. This can include a nil value.
A bit of good news last night, the LA said they are accepting the valuation now, we just don’t know which one - £165k or £175k.
At least it’s not £200k.
We are trying to get together some receipts for work done but we don’t have much. Who keeps receipts for pots of paint when it’s on the wall? Ok, this is just an example but it all adds up.
A solicitor told us years ago that in theory we could charge mum ‘rent’ for living in our half of the house. We were never likely to do that, it was her home after all but it’s things like this that would help out now.
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