Pay for a care home

The universal deferred payment scheme means that people should not be forced to sell their home in their lifetime to pay for their care.

A deferral can last until death. However, many choose to use it to give them time and flexibility to sell their home when they choose to do so. It is entirely up to you to decide.

How deferred payments work

Your financial assessment will use your income to decide how much you must pay towards your care. We’ll then pay the rest as a loan to you. 

This loan will be repaid once your home is sold. We’lll also apply to the Land Registry to place a first legal charge on your property. 

The solicitor dealing with the sale will be able to see that we hold an interest in the property and will repay us directly.

After your loan has been paid your care contribution will be reassessed.

Estimated costs

£500.00 for preparing the agreement and Land Registry fees.

£40.00 for registering the legal charge or perfecting the security. 

£170.00 for cancelling registration of the legal charge, or discharging the security upon repayment of all sums payable under the agreement. 

£200 for other admin charges.

Like with other loans, there will also be interest charges. These are based on a daily compound rate set out by the Office for Budget Responsibility. Check the Bank of England’s current interest rates. 

Who can get deferred payments

You should be able to get deferred payments if:

• you own your own home
• you live in or are moving to a care home on a permanent basis
• you have less than £23,250 in capital and savings
• nobody else, such as a spouse, partner or dependent child needs to continue living in your home
• your property is registered at the Land Registry

Applying for a deferred payment

Contact us for an application form for deferred payment by:

• calling 0207 525 1111
• emailing ChargingTeam.AdultSocialCare@southwark.gov.uk

You have 14 days from receiving the form to send it back. After 14 days we will assume that you do not want a deferred payment.

Applying on behalf of someone else

If someone lacks the mental capacity to make a decision about deferred payment, a Court of Protection appointed deputy can make the application on their behalf. 

You need to speak to our Deferred Payments Team to discuss your situation by:

• emailing ChargingTeam.AdultSocialCare@southwark.gov.uk
• calling 0207 525 1111