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Fair deal scheme with nursing home loan , House price may now have increased.

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  • 12-01-2022 4:58pm
    #1
    irishgal21
    Registered Users Posts: 19 ✭


    Hiya,

    We signed up for Fair deal scheme with nursing home loan for a relative.

    He passed away 1.5 years into their Nursing home stay. We had his house valued at the time of the loan at 370,000, and in order to sign up for the nursing home loan.

    We are also aware that the nursing home need to be notified when the house is sold.

    We have just received a letter from HSE requiring a schedule of assets.

    My question is, if we sell the house for more than what it was valued at , at time of loan, ( a likely scenario since houses prices have risen since he passed away 6 months ago )

    Will we owe the HSE even more money now based on the actual selling price ? Eg: €450,000 , or is the value at time of loan set in stone ?

    I read somewhere that calculations are based on the value of the house at time of death , the house value would therefore be more than 370,000 (the Value 1.5 years ago ) but less than the actual selling price.

    Please help.

    I



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    #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,638 Mod ✭✭✭✭Henry Ford III


    The loan was calculated on the basis of the original valuation, max of 22.5% of the €370k, and that's the extent of the liability.

    Loan has to be be repaid within 12 months of death to avoid hefty interest charges.


    p.s. Only noticed the 18 month survival period now.

    Post edited by Henry Ford III on


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    #3
    irishgal21
    Registered Users Posts: 19 ✭irishgal21


    Ok , Understood and thank you so much for the reply !



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    #4
    naughtysmurf
    Registered Users Posts: 3,242 ✭✭✭naughtysmurf


    As the nursing home resident passed away after 18 months , taking into account the 3 year cap, does that mean that the amount owed to revenue based on the original valuation of 370k is 41,625 or the full 22.5% of 370k coming in at 83,250?

    thanks



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    #5
    Gael23
    Registered Users Posts: 12,089 ✭✭✭✭Gael23


    The 3 year cap is a safety net so only half 22.5% would be due.



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    #6
    irishgal21
    Registered Users Posts: 19 ✭irishgal21


    After death the HSE calculated that we owe them about 39,000 based on the value of the house when the loan was taken out the actual value determined by an estate agent at the time the loan was taken out was (350000 not 370,000 sorry my mistake! ) I just checked our notes there. .The HSE get 7.5% of value of house per year of stay in nursing home to a max of 3 years ie 7.5+7.5+7.5 = 22.5% 

    so the stay the in home was 1.5 years = 7.5 + 3.75= 11.25%

    11.25% of 350,000 = 39,375



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