Step 1: Confirm Mental Capacity

If they want someone else to handle the sale for them now or in the future, they may choose to set up a Lasting Power of Attorney (LPA). This is optional — if they have capacity and want to sell themselves, they can do so directly without an LPA.

Step 2: Apply for Deputyship (if no LPA)

Deputyship allows someone to make property and financial decisions on behalf of the owner.

Steps:
- Obtain medical assessment (Form COP3) confirming lack of capacity
- Complete forms: COP1, COP3, COP4
- Notify at least 3 family members (COP1A)
- Submit to Court of Protection with £365 fee

Timeframe: 4–6 months (6–10 weeks if urgent, e.g., to cover immediate care costs, prevent property loss such as repossession, or arrange urgent repairs to protect the property’s value)
Costs:
- Medical assessment: £100–£300
- Application fee: £365
- Annual supervision: £35–£320 (higher if managing large sums)
- Security bond (if needed): £100–£500+ (higher for high-value estates)
- Optional solicitor fees: £750–£2,000+

Step 3: If the Person Has Capacity — Set Up an LPA (Optional)

If still mentally capable, the owner can:
- Sell the property themselves, or
- Set up a Lasting Power of Attorney (LPA) if they want someone else to manage the sale or finances on their behalf.

Two types of LPA:
1. Property & Financial Affairs
2. Health & Welfare

Takes 8–12 weeks to register | Cost: £82 per LPA

Step 4: Check If Sale Is Required for Care Funding

1. Care needs assessment

  • The local authority first checks what care is needed (type, level, and cost).

  • If residential care is required, they move to a financial assessment.

  • Timeframe: Usually 2–6 weeks from request, but urgent cases (hospital discharge) can be same day.

  • What can delay it: Staff availability, disputes over needs, missing medical information.

2. Financial assessment

The council looks at:

  • Income (pensions, benefits, savings interest)

  • Capital (savings, investments, property value)

  • Timeframe: Often 1–4 weeks after the care needs assessment.

  • Delays: Gathering property ownership documents, pension info, bank statements.

If the only capital is the home, the rules depend on whether it’s counted in the means test.

3. When the home is NOT counted (disregarded)

The property’s value is ignored if certain people still live there, such as:

  • A spouse or civil partner

  • A close relative over 60

  • A dependent child

  • A disabled relative of any age

  • If a qualifying relative lives in the property: Decision is immediate once confirmed in the financial assessment.

  • If no one qualifies: The home’s value is counted straight away.

In that case, the council funds care based on other assets/income.

4. When the home IS counted

If no qualifying relative lives there:

  • Its value is included in the means test.

  • If total capital (including the house) is above £23,250 in England, the person is self-funding until assets drop below this threshold.

5. Deferred Payment Agreement (DPA)

Instead of forcing an immediate sale, the council can:

  • Pay the care home fees on the person’s behalf

  • Secure the debt against the property

  • Recover costs later when the property is sold (either during life or after death)

  • The costs that the council pay will incur interest

A DPA is common when the home is the only asset.

6. When the property might need to be sold

If no DPA is used and no other way to pay fees, the home may need to be sold to release funds.
Sometimes families choose to rent the home out to cover fees, but the council must agree this arrangement if they’re involved.

Step 5: Understand the 12-Week Property Disregard

Applies from the date of permanent admission to care.
During this time:
- Property value is not counted in means test
- Council helps fund care
- Time to set up legal and financial arrangements

Step 6: Alternatives to Selling the Home Immediately

Option 1: Deferred Payment Agreement (DPA)
- Council pays care fees now, repaid when home is sold
- Like a secured loan (interest may apply)
Option 2: Use other savings or income

If neither option is taken, the council may take legal action to recover costs, which could include forcing a sale.

Step 7: Selling the Property Under Deputyship – Key Differences & Process

Court of Protection must authorise the sale (if not already specified in the Deputyship Order). Check the ‘Powers Granted’ section of your order or ask your solicitor.

Timeframe: 6–12 weeks if a new application is needed.
Deputy must act in the owner’s best interests and get fair market value.

Private buyer – Direct sale to an individual or investor; can be quicker, but ensure protections such as obtaining a RICS valuation, using a solicitor for all contracts, and avoiding informal handshake deals.

Buyer’s solicitor will require:
- Deputyship Order + capacity assessment
- Court authorisation to sell (if applicable)
- Deputy’s ID

Proceeds:
- Must go into the Deputy’s OPG-registered account
- Can only be used for the owner’s care or expenses
- Significant spending (e.g., gifts, home adaptations) may require separate court approval — check before making large withdrawals
- Sale and use of funds must be reported in the annual Deputy return

Special Note: Jointly Owned Property

If the property is jointly owned, all owners must agree to the sale. If a co-owner refuses, the Deputy may need to apply to court to authorise the sale of the owner’s share. Seek legal advice — the process depends on the type of joint ownership.