Deferred Payment Agreement
Deferred Payment Agreement is designed to prevent people from being forced to sell their home in their lifetime to pay for the care home charges at the full cost weekly charge.
Should you be assessed as having to pay the full cost charges towards your residential care but are not able to pay the full weekly charge, you can choose to apply for the Deferred Payment Agreement.
By entering a Deferred Payment Agreement, the council offers you a loan, with interest and administrative charges. This allows you not to pay the ‘deferred’ amount until the capital in your home is released on the sale of your property or the Deferred Payment Agreement ends upon your death.
For the deferred payment agreement application to be considered, there are criteria that must be met in the first instance:
- that you have mental capacity or if you lack mental capacity, there must be a person(s) that holds legal capacity to manage your “property and financial affairs” - documentary evidence of this arrangement will be required
When you sign a deferred payment agreement, you will enter into a legal contract with the council and a legal charge will be placed on your property.
We are only able to advise on the council’s product “Deferred Payment Agreement”. You may find that there are other more suitable funding products available to you. You should seek independent financial advice from a qualified source when considering a deferred payment agreement.
More information can be found in the deferred payment policy