Dementia – Selling a Property and Court of Protection Involvement

As families face the challenge of funding care home fees for a loved one, selling a property often becomes a necessary step in managing the financial aspects of long-term care. This process becomes more complex when an individual who owns the property has been found to lack capacity to manage their financial affairs due to a diagnosis of Alzheimer’s Dementia.   

In such situations the following matters must be considered:

1. Has the Individual Made a Power of Attorney?

If there is a valid Lasting Power of Attorney (LPA) or Enduring Power of Attorney (EPA) the appointed Attorneys may have sufficient authority to deal with a property sale. Advice should be sought from a Solicitor to confirm that the LPA or EPA has been correctly executed and to check that the wording allows for the sale of a property on behalf of the individual who has now lost capacity. 

2. Court of Protection Application  

If there is no valid LPA or EPA which authorises a property sale an application will need to be submitted to the Court of Protection to request permission for the property to be sold. Depending on the circumstances a one-off application to sell the property may be made or this authority may be included in an application to appoint a Property and Affairs Deputy for the individual. 

If the property is jointly owned specialist advice should be sought from a Solicitor to determine the evidence that needs to be submitted to the Court in support of the application as the process is different for jointly owned properties. 

The Court will want to see evidence that the individual concerned has lost capacity. This evidence is usually provided by a medical professional such as a GP or Consultant. 

It will also be necessary to provide evidence to the Court that the care home placement has been assessed and that it is in the individual’s best interests to remain living there. This process is referred to as ‘DOLS’ authorisation. This authorisation can take some time to be obtained so it is best to request the relevant paperwork from the Local Authority as early as possible. 

Once the application has been received the Court will carefully review the evidence provided to ensure that the sale is in the individuals’ best interests.  

3. Sell the Property: 

If the Court approves the application an Order will be issued which authorises the applicant to progress with selling the property and the proceeds of sale can be used to pay any outstanding care home fees. 

Our specialist Court of Protection team at Chadwick Lawrence can guide you through the process of making an application to the Court in connection with the sale of a property. For any queries please contact our team on 0800 015 0340 or via email at courtofprotection@chadlaw.co.uk.