In our weekly series, readers can email any questions about their finances to be answered by our expert, Rosie Hooper. Rosie is a chartered financial planner at Quilter Cheviot and has worked in financial services for 25 years. If you have a question for her, email us at money@inews.co.uk.
Question: If theoretically my wife or I were in a care home permanently, could the remaining person living by themselves take out equity release from our house – which is jointly owned – if either of us needed cash to supplement our pension? We both have power of attorney.
Answer: When one partner moves permanently into a care home, the financial shock for the person left at home can be immense. Overnight, you can find yourself trying to cover the same household costs on a fraction of the income you used to share. It is an anxious, isolating position to be in, and it is completely understandable that you are looking for ways to ease the pressure.
The first point to reassure you on is that the home you own together is protected while one of you remains living in it. Local authorities must ignore its value when they assess the partner in the care home for help with fees. That means the house is not forced into the equation while you are still living there, which can feel like one small piece of solid ground at a stressful time.
The more complicated question is how the spouse at home manages their finances when their partner’s pension is largely swallowed up by care costs. This is where equity release sometimes comes into the conversation. It is natural to wonder whether you might be able to unlock a little of the value tied up in the property to help with day-to-day expenses.
In reality, whether that is possible will depend very much on the lender you approach and how your wider financial situation looks. Because the property is jointly owned, most equity release providers will want to understand exactly who owns what and who is living in the home.
Some lenders will consider applications where one owner has moved permanently into a care home, while others have stricter criteria or may require additional legal steps before they can even consider it. Powers of attorney can help with signing paperwork if one partner cannot manage the process themselves, but they do not guarantee that a lender will feel comfortable lending in this situation.
This is why it is difficult to give you a straightforward yes or no. For some couples, this kind of arrangement can work, while for others the lender’s rules simply do not allow it. The decision often comes down to a mix of factors such as the type of ownership, your long-term plans, the permanence of the care placement and the provider’s own view of what is appropriate.
There are, however, other options that many couples in your position explore. Downsizing can sometimes offer a clearer route forward. Moving to a smaller home or a retirement flat can release capital, reduce household bills and bring you closer to family support. It also avoids the complexities of borrowing later in life when circumstances are already emotionally demanding.
The most important thing is that you do not have to navigate this alone. If equity release is something you want to explore, the best place to start is with a later-life mortgage adviser who works across a range of lenders. They can look at your full financial picture, check which providers might be willing to consider your case and guide you through the pros and cons so you can make a decision that feels both informed and manageable.
You are facing a situation that many families worry about, but there are ways to make it feel less overwhelming. With the right advice and a clear understanding of your options, you can find a path that protects both your finances and your independence.
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