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SMI on a loan to build a house extension

Jos
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Welfare Rights and Appeals, Welfare Advice, Horsham

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Joined: 9 June 2015

Hi

I have a client in receipt of ESA (conts based with income related top up) whose parents and very elderly grandmother (90+ y/o) live with him in a bungalow which he owns outright with no current mortgage. His grandmother moved in a couple of years ago due to increasing frailty and advancing dementia, and her own house was recently sold. They do not want to place her in a nursing home.

Client wants to take out a mortgage/secured loan to pay for an extension to the bungalow because the property is too small for his elderly grandmother to safely move around as she needs a walking frame, toilet frame, rotunda etc and the dwelling as it stands is too small to properly accommodate these. Her needs have been backed up by care assessments, occupational therapists etc for which there is copious evidence and she is in receipt of the higher rate of attendance allowance.

Client has come to me for advice before proceeding with a mortgage/secured loan in case DWP say no to SMI on his ESA. He has a decision in principle for the loan approved with the bank but I can’t decide whether extending the property to enlarge the rooms so his disabled grandmother can navigate more easily/safely would fall under “adapting a dwelling for the special needs of a disabled person” so as to be eligible for SMI as there would be no adaptations per se, just a larger living space.

Any suggestions or case law?

Cheers

ClairemHodgson
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Solicitor, SC Law, Harrow

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if granny has dementia who is dealing with her money?  wondering if the CoP would agree to granny’s money being used to pay for said extension? might depend on whether granny made a will pre onset of dementia and what it said - if he’s in line for it all or a share anyway (depending on parents position as well) that may be something to investigate. i’d be inclined to advise your client to take advice from a relevantly qualified solicitor on these points.  granny’s money could be used to pay for said advice, since the advice would be being taken as to the best way of dealing with the money etc etc etc in her interests as well.

Jos
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Welfare Rights and Appeals, Welfare Advice, Horsham

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Hi,

Thanks for your input Claire. I’ve just spoken with the client re: the above.

It sounds like it’s a contentious issue. The grandmother made a will many years ago, when of sound mind etc, in which she agreed to leave her estate to her four children. Three of those children (i.e. all except the one she lives with) want to put her in a nursing home. The son who she lives with has PoA and refuses to put her in a nursing home as it is clearly against her wishes as she’s adamant that she doesn’t want to go into one.

Client says they already took legal advice re: financing the extension with grandmother’s money but they were told that this would need to be noted on the deeds, giving rise to her other siblings staking a claim on the property after she dies, and my client believes that the other children would go to the CoP to challenge any decision to use her money in this way by labelling it as an act of selfish greed for their own benefit, rather than being in the interests of the grandmother. Which is why they want to avoid all that by paying with a mortgage, so the original question still stands…

ClairemHodgson
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Solicitor, SC Law, Harrow

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Joined: 13 April 2016

Jos - 12 September 2016 12:02 PM

Hi,

Thanks for your input Claire. I’ve just spoken with the client re: the above.

It sounds like it’s a contentious issue. The grandmother made a will many years ago, when of sound mind etc, in which she agreed to leave her estate to her four children. Three of those children (i.e. all except the one she lives with) want to put her in a nursing home. The son who she lives with has PoA and refuses to put her in a nursing home as it is clearly against her wishes as she’s adamant that she doesn’t want to go into one.

Client says they already took legal advice re: financing the extension with grandmother’s money but they were told that this would need to be noted on the deeds, giving rise to her other siblings staking a claim on the property after she dies, and my client believes that the other children would go to the CoP to challenge any decision to use her money in this way by labelling it as an act of selfish greed for their own benefit, rather than being in the interests of the grandmother. Which is why they want to avoid all that by paying with a mortgage, so the original question still stands…

well, i can see that bone of contention - but really if one family member is happy to and can put in the caring himself, why not?

and an odd attitude as well where it has to be the case that a care home would be much more expensive for granny’s estate than living with the family carer!  i should have thought the maths would have been in favour of an extension than in favour of a care home.

Also, it is entirely possible to put a charge on the house to repay whatever it is in due course, but again, that would need technical advise from those appropriately qualified.

Also, if the other family are whinging about this, they are bound to whinge about use of her funds for her maintenance as well.  she should be required to pay for her own food, share of heat/light etc, not be maintained for free by her family carer (again, cheaper than a care home but i guess would come out of her pension and AA).

he could see if he could apply for an order to do this with his PoA; if the court will agree then he will be able to do it.  family will be able to have their say.  and no doubt social services agree your client is able to provide the necessary care?