Fair Deal Valuations Cork

Fair Deal Valuation Cork

If you’re navigating the Fair Deal Scheme for a loved one, you’ve probably discovered how many steps are involved in the process—and how overwhelming it can feel. One key requirement is getting a professional valuation of your family home. If you’re wondering why this is needed, how to go about it, or what it means for your financial planning, you’re in the right place.

Let’s break it all down step by step, so you feel confident and informed as you move forward.

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Why Is a Fair Deal Valuation Necessary?

The Health Service Executive (HSE) requires a valuation of your family home to calculate your loved one’s financial contribution under the Fair Deal Scheme. This valuation provides an accurate reflection of the current market value of the property and ensures the contribution is calculated fairly.

Key factors valuers assess include:

• The location and size of the property.
• Comparable sales and current market trends.
• The property’s condition and unique features.

By working with experienced professionals like DNG Galvin, you can be sure your valuation meets HSE standards and gives you a clear picture of your financial position.

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How Does the Valuation Affect Fair Deal Contributions?

The Fair Deal Scheme calculates contributions based on:

1. Income Contribution:
   Your loved one contributes 80% of their annual income, such as pensions or other earnings.
2. Asset Contribution:
   • 7.5% of the value of their assets, including property, is assessed annually.
   • The family home is only included in the calculation for the first three years of care (the three-year cap).
   • The first €36,000 of assets is exempt from assessment.

Example:
If your family home is valued at €250,000, the annual contribution would be €18,750 for the first three years. After that, the property is no longer factored into the calculation.

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What Are Your Options After the Valuation?

Once the valuation is complete, you’ll need to decide how to manage the property. Here are your key options under the Fair Deal Scheme:

1. Sell the Property:
   • The proceeds of the sale replace the property’s value in the financial assessment.
   • The three-year cap still applies, limiting contributions to the first three years of care costs.
   • Any Nursing Home Loan must be repaid within six months of the sale.
2. Rent the Property:
   Recent changes to the Fair Deal Scheme make renting more attractive. Families can now keep 100% of rental income without it affecting the contribution assessment. This is a great option for generating income while retaining ownership of the home.
3. Defer Contributions with the Nursing Home Loan:
   The Nursing Home Loan allows you to defer the property-based contribution. This can be especially helpful if you’re not ready to sell or rent the home immediately. The loan is typically repaid later, often through the estate.

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Next Steps to Take

Here’s how to move forward:

1. Arrange a Valuation:
   Contact a professional valuer to assess the family home. This step is essential for completing your Fair Deal application.
2. Submit Your Application:
   Provide all necessary financial details, including the property valuation, to the Fair Deal office.
3. Discuss Your Options:
   Decide whether to sell, rent, or defer contributions based on your family’s needs and circumstances.
4. Seek Expert Advice:
   If you’re uncertain about the financial or legal implications, consult a solicitor or tax advisor to guide your decisions.

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Balancing Practicalities and Emotions

The transition to nursing home care is not just a logistical challenge but an emotional one. Tackling practical steps like arranging a valuation early can ease some of the pressure and allow you to focus on your loved one’s well-being.

Enlisting the support of siblings or family members can also help distribute the workload and reduce stress. Armed with the right information, your family will be well-positioned to navigate the process with confidence and care.

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DNG Galvin: Your Trusted Partner for Fair Deal Valuations Cork

At DNG Galvin, we understand how important it is to get this step right. As experts in the West Cork and Cork property markets, we provide professional, reliable valuations tailored to the requirements of the Fair Deal Scheme.

With decades of local market experience, we’ll ensure your valuation is accurate, stress-free, and compliant. Whether you’re considering selling, renting, or holding onto the family home, our valuations will give you the clarity you need to make the right decisions.

Contact us today to arrange your Fair Deal property valuation and take the next step towards securing quality care for your loved one.

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Frequently Asked Questions (FAQs)

What happens after three years in the Fair Deal Scheme?

After three years, the family home is no longer included in the asset assessment for Fair Deal contributions. This is known as the “three-year cap,” and it significantly reduces the financial burden for families with a loved one in long-term care.

What happens with the Fair Deal Scheme when a person dies?

When a participant in the Fair Deal Scheme passes away, any deferred contributions through the Nursing Home Loan must be repaid from their estate. The HSE will recover the amount owed, ensuring the process remains fair and sustainable.

Can you sell a house under the Fair Deal Scheme?

Yes, you can sell a house while participating in the Fair Deal Scheme. The proceeds from the sale will replace the property’s value in the financial assessment, and the three-year cap still applies. If you’ve opted for the Nursing Home Loan, it must be repaid within six months of the sale.

What percentage of the home does the Fair Deal Scheme take?

The Fair Deal Scheme assesses 7.5% of the home’s value annually as part of the contribution. However, the three-year cap limits this contribution to 22.5% of the property’s value in total, ensuring fairness and affordability for families

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