Moving an older person into a care home brings a number of challenges – not least about what will happen to their property. Often a house or flat they have spent many years in will be left empty for a short time or quite a while.
Before the home is sold, rented out or occupied by a family member, it is important to tell a number of service providers – from insurance to utility companies – that the owner has moved. Here is the checklist of what you need to know:
The council
Council tax, which helps councils pay for the local services they provide, varies depending on what band you are in, whether you live with someone else, and your income, among other factors.
An older person living alone will already have been entitled to a 25% discount on their council tax bill.
Homes that are left empty when the owner moves out do not get a council tax bill, as long as the local authority is informed. “They would need to have been resident in the property until the point they moved into the care home for this to apply,” says Citizens Advice.
However, if someone moves into the property while the owner is in the care home, the exemption ceases to apply.
Utilities
Utility companies – which supply services such as gas, electricity, water, broadband, phone and TV – will have to be told that the owner of a property has moved into a care home.
This means that contracts that are no longer needed can be ended, and others can be updated to reflect the change in circumstances. In some cases, termination charges may be waived by the provider.
BT says it may be possible to move a phone and broadband service to a care home, but it cannot guarantee that the individual will have access to the same number.
It recommends giving at least three weeks’ notice. The company does not charge termination fees if someone is moving into a care home.
TV licence
If the person is taking their TV with them, they will have to move their licence with them, too. This can be done by updating their details online. A care home resident may qualify for an “accommodation for residential care” concessionary TV licence, which costs £7.50 a year for those under 75. The resident can then request a refund of the full months left to run. People who are over 75 and receiving pension credit, or live with their partner who is also over 75 and getting pension credit, qualifies for a free licence.
Post
Applying for a redirection of post can be done online through the Royal Mail website. The addresses of both the original home and the care home will be needed.
Security questions will also be asked, and Royal Mail says applicants need access to bank documents, mobile phone contracts or credit card details.
You can apply during the period that runs from six months before you move to six months after. It usually takes five working days to arrange.
It costs £76 a year for post within the UK, and £275 for overseas addresses. In cases where someone is taking charge of the person’s affairs, Royal Mail can forward mail to them for up to four years.
Insurance
When Ronald Saunders*, 92, moved into a care home, he saw his home insurance more than triple while his property was unoccupied and put up for sale. The three-bedroom thatched cottage in rural north Devon cost £90 a month for buildings insurance to the end of last year. But when Saunders moved out in December, the bill immediately went up to £144 a month, and would have increased to just under £300 on the policy’s renewal in August. The home, built in 2002, was insured for £705,000.
His son Noel* says the house is “exceptionally well-maintained” and inspected every week, but that insurer NFU Mutual said the quote was correct and no mistake had been made.
NFU Mutual apologised for any distress caused, but says thatched properties have more chance of catching fire when unoccupied. Increased building costs have affected the costs of claims, it adds.
“The main reason behind this price increase is the unoccupancy, which typically makes any property more expensive to insure because of increased risk of theft, fire, burst pipes and other issues that arise from reduced supervision.”
After going through a broker, Noel found a better quote with Prestige Insurance for £129.79 a month.
The Association of British Insurers says there is typically a limit of 30 or 60 days on how long a home can be left unoccupied. This is because of the potential for malicious damage, frozen and burst pipes or theft. Damage may also be more expensive as there is no one there to raise the alarm, it says.
When moving to a care home, an insurer should be told, and it may offer a policy at an increased premium. There are also policies on the market which are designed specifically to cover unoccupied homes.
It is important to check the terms and conditions.
The bank
While many older people will already have paid off their mortgage, the availability of longer-term products means that some may still be carrying debt.
These borrowers should consider how they will pay their mortgage while in care.
“Ultimately, the borrower will still be responsible for the mortgage payments,” says UK Finance, the banking trade body.
If the property will be left empty, the bank needs to be informed. “If you are moving into care, is someone else moving into your home? You should contact your mortgage lender to discuss these changes.”
So-called “consent to let”, where the mortgage lender gives permission to let out a property, may be needed.
If the older person needs someone to help with the management of the property, they can be added as a third party on to the account.
This article was amended on 31 October 2023. An earlier version said that anyone who was over 75 received a free TV licence. In fact, to get a free licence you need to be 75 and over and receiving pension credit or living with a partner who is 75 and over and receiving pension credit.
* Names have been changed