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Deferred Payments


Helping homeowners pay residential care costs until their property is sold

What is the Deferred Payment Scheme?

If you are a home owner moving to residential care this scheme may assist with the payment of your care home fees. In return for a legal charge on your property, Bournemouth Borough Council pays agreed care costs. These will be repaid when the property is sold.

This arrangement is similar to an interest-free loan for the period of the deferred payment agreement. There is a charge of £500 to cover administration, legal and Land Registry costs.


Who is the scheme for?

It is for home owners who have under £23,250 capital, excluding the value of their home, and who are moving permanently into residential care funded by the local authority who either:

  • do not wish to sell their home OR
  • are unable to sell their home quickly enough to pay for their care.

How do I become eligible for the scheme?

To join the scheme you must

  • have been assessed by Adult Social Care as needing residential care
  • be eligible for funding from Bournemouth Borough Council
  • have a 100% beneficial interest in a property you have been living in which is worth enough to cover your stay in residential care. If jointly owned, the joint beneficial owners agree that the property can be sold to realise your share of the property
  • provide evidence of any loan on the property. We obtain a valuation of the property and make a decision to accept you on the scheme based on the equity
  • if a first legal charge is not possible, your equity in the property must equal at least two years of residential home fees
  • provide us with details of the insurance of the property
  • pay a weekly contribution based on an assessment of income and assets.

How does the scheme work?

For the first twelve weeks your property is disregarded. After this time you need to agree to Bournemouth Borough Council placing a legal charge on your property. You must ensure the paperwork is completed promptly. The Council payd the balance of care costs up to an agreed rate that would have been met from the sale of the property.

You may wish to move to a residential home where the fees are higher than we would normally pay. This is known as preferred more expensive accommodation. After this twelve- week period you can ask for the additional fees for more expensive accommodation to be added to the deferred payment element of the residential home costs. 

When must the money be repaid?

The money must be repaid by the earliest of these dates:

  • when the property has been sold
  • when you terminate the agreement
  • within 56 days of your death.

If the debt if not repaid by these dates, interest is charged at the County Court rate. We expect the debt to be repaid within 12 months of the end of the agreed period.

How do I apply?

If you are planning to live in a residential home following an Adult Social Care assessment and are thinking about deferred payments you should discuss it with your Care Manager. If you decide to go ahead, the Care Manager will notify the Council's Financial Assessment and Benefits Team.

A contract letter and terms of the agreement will then be sent to you. This shows the assessed payments to be made under the scheme and the terms of the agreement.

What if I already live in residential care?

If you have already moved into residential care but have only just heard of the Deferred Payment Scheme you may still be eligible.

To find out more contact:

Financial Assessment and Benefits Team

Tel: 01202 451346 / 451567 / 451617/451108


Wallisdown Heights Office,121 Canford Avenue, Bournemouth, BH11 8SH

Related Information


Postal Address Bournemouth Care Direct,
Customer Services Centre,
St Stephens Road, Bournemouth, Dorset
Telephone Number 01202 454979
Fax Number 01202 454975
Email address Care Direct
Out of Hours Telephone Number

Out of Hours:
01202 657279