Equity limit

12.1    The equity limit is 90% of the value of the property against which the deferred payment is or will be secured, less: 

• the lower capital limit set by the Department of Health and Social Care and 
  
  
• the amount of any other financial and / or beneficial interest secured on the property ranking in priority over the council’s charge  

12.2    Fluctuations in the value of the property over time affect the equity limit. The total amount deferred including all care costs, interest and administrative fees and charges will be reviewed at regular intervals during the course of the deferred payment agreement to ensure that the equity limit is not exceeded.  

12.3    No further care costs will be deferred if this will cause the equity limit to be exceeded. However interest and administrative costs will continue to be added to the deferred amount. See section 19 When deferral of further care costs must or may cease. 

12.4    The council will review the adult’s arrangements for meeting care costs with the adult or their representative when the amount deferred approaches or reaches 70% of the value of the property. The review will include consideration of the continuing costs of care including any top ups, the implications of being unable to sustain a top up, potential eligibility for means tested support, and whether a deferred payment agreement remains the best option for meeting care costs.