The CHIP

The Care and Home Inheritance Plan

What is the Care and Home Inheritance Plan (CHIP)?

The Care and Home Inheritance Plan (CHIP) is our unique solution for paying for residential care without selling your home.


If you require care in a care home or residential setting, the Care and Home Inheritance Plan enables you to do this without selling your home. Ownership of the property is never surrendered, and the house can then still form a part of your estate at the end of your life, providing your children, grandchildren, or other beneficiaries with a valuable inheritance.


Within the Care and Home Inheritance Plan, we package up all of your care costs and these are paid back over time using rental income for the property. You’ll never pay out a penny for your comfortable and worry-free care.

Who is eligible for the Care and Home Inheritance Plan?

You must meet two criteria to qualify:

You live in or are moving into a care home

The CHIP is suitable for you if you already live in, or will soon be moving into a residential care setting.

The property is a freehold or has a long lease

You must own your home either on a freehold basis, or on a leasehold basis with at least 99 years remaining on the lease.

Find out how much help you're entitled to

Use our CHIP Calculator to find out how much we can pay towards your care

Try it now

Quicker

Simpler

Cheaper

Profitable

Quicker

4

weeks

Time it takes to complete the Care and Home Inheritance Plan and receive care funds

16-24

weeks

Time it typically takes to sell your home to completion and receipt of cleared funds

Simpler

With the CHIP...

  • You don’t need to sell the house


  • Refurbishment to bring house up to a lettable standard is included in the Plan


  • House clearance is managed for you (where required)


  • Letting is managed for you

To sell a house...

  • You need to appoint and manage an agent


  • You will probably need to invest money in improvements to secure the best price


  • You may need to manage the house clearance

Cheaper

Cost CHIP House Sale
Needs assessment and care home research £1,500 * £1,500
Completion / sale fees (including legal fees and VAT) £8,500 * £5,097 – £8,032 **
Cost of House clearance and refurbishment to letting or sale standard £0 (repaid from rent) £10,000
Total costs £10,000 £16,597 - £19,532
Net cash required to cover sale costs and payable on completion £0 £16,597 - £19,532

* The Care and Home Inheritance Plan refinances these costs so that the Care and Home Inheritance Plan purchaser has no net costs to pay on completion.

** 'Which' assesses the cost of selling the average priced house in the UK (£235,853) at between £5,097 and £8,032 with sale costs of more expensive houses being higher (source).

Profitable

Care Home fees can be expensive. The Care and Home Inheritance Plan enables you to cover the cost of your care and over time, it generates significant profit for your beneficiaries in two ways:

Additional Income from Rent

The rent generated pays the costs borrowed from the Plan to help pay care fees.


Once these costs have been repaid the rent can be paid to the homeowner. This rent can amount to 3% of the value of the property every year.


Property Value Increase

The home's value will continue to increase at an average of 4.2% per year.


Over the years, the rent pays off the care home fees and annual property price inflation adds to the value of the home which the beneficiaries ultimately inherit.


Variable or Fixed Fee Plan Available

No one knows how long they will need care in a care home, so we offer customers both Variable and Fixed Plan options.


The Variable Plan pays for the months that the customer requires care in their care home. 


The Fixed Plan pays for four years care fees regardless of how long the customer requires the care. If the customer requires care for longer than four years then the fixed plan will cover the additional care fees (beyond 4 years) at no further cost to the customer.


Your Personal

Financial Plan


As a Care and Home Inheritance Plan customer, you will be provided with a Personal Financial Plan based on the funds that you require to help pay your care home fees. This will include:

Care Home Fees

Let us know your chosen care home and we will base your Plan on the fees.

Cost of Improvements

The cost of improving your property into a condition where it would achieve best rent for the area.

Variable or Fixed?

Both options are provided in your Plan so you can consider which is best for your unique circumstances.

Lease Break Calculation

We will tell you exactly how much it will cost in case you want to exit the agreement at any time.

Interested in the Care and Home Inheritance Plan?

Get in touch!

CHIP Page Contact Us

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