purchased parents property instead of equity release

A question about : purchased parents property instead of equity release

Hi can anyone give me some advise

i purchased my parents house 14 years ago for the same value and on the same understanding as an equity release company had quoted them, as i had come into some money. I thought it was good for them as they had a mortgage given to them in there 70's which they could no longer afford and needed to release the equity to pay it off h and it seem a good long term investment for me.

Fast forward 14 years ,they are now both in there late 80's and need to go into care (cant be seperated understandably). They have enough funds left to last maybe 10 months @ 1500 per week.

Im now worried what will happen when they have used all there savings?

Best answers:

• What advice were you given at the time? Have your parents been paying rent? You may need to get independent advice.
• Surely they received more than Ј15k for their house (or maybe a little over Ј10k, as the Ј1500pw must include their pensions)? What's happened to their money over these 14 years and how much is left?
  But the final answer is likely to be a local authority-funded care home.
• Sell the house and help them out.
  Might have to take a CGT hit.
  Rent the house out to create some income to help them out.
  Could you look after them.
• You should talk to the local authority social services. They will have a standard procedure for an assessment of needs and ability to pay. The local authority will contribute sufficient to ensure that they can afford something appropriate for their needs. It would be a good idea if you research and visit local care homes to find one you would be happy for them to go into.
  See here for more info.
• We paid what the equity release firm were offering which was 50%, so 50k. We also paid stamp duty at market price. They paid off there mortgage of 15k and banked the rest. They now have about 80K inc which must be pension over the years.
  It was all done above board, in good faith. We have thought about paying some of the fees from any rent we could receive from the house, but this wont be enough to cover all the cost of nursing care.
• [QUOTE
  With a puchase at 50% value there is still the risk of a deprivation of assets assesment.[/QUOTE]
  14 years ago so would think that this would be highly unlikely
• Who owns the house?