Selling a House with an LPA: Complete Property Sale Guide

Selling a House with an LPA: Everything You Need to Know

One of the most common reasons people use a Property & Financial Affairs LPA is to sell a home—often to fund care for an elderly parent. This guide explains exactly how the process works.

When Would You Sell Property Using an LPA?

Common Scenarios

1. Funding care home fees The most common reason. A parent moves into care and their house needs to be sold to pay fees.

2. Downsizing for safety A parent can no longer manage a large house. Selling allows a move to more suitable accommodation.

3. Property maintenance impossible The donor can't maintain their property and it needs to be sold before it deteriorates.

4. Financial necessity The donor needs funds for living expenses, medical care, or debt repayment.

5. Uninhabitable property The donor is in hospital or care long-term. The empty property is a liability.

What You Need Before You Can Sell

1. Registered Property & Financial Affairs LPA

Crucially: The LPA must be registered with the Office of the Public Guardian BEFORE you can use it.

An unregistered LPA has no legal power. Registration takes 8-10 weeks, so plan ahead.

2. The Donor Must Lack Capacity (Usually)

If the donor still has capacity: They should ideally be involved in the sale decision. The LPA can be used with their permission, but their involvement is preferable.

If the donor lacks capacity: The attorney acts in their best interests. No additional authority is needed—the LPA provides this.

3. Certified Copy of the LPA

Solicitors and conveyancers will need a certified copy, not the original. Get these from the OPG (£35 each) or have them certified by a solicitor.

4. Evidence of Best Interests Decision

You should document WHY selling is in the donor's best interests:

• Care fees requirements
• Medical recommendations
• Safety concerns
• Financial needs

Keep notes of your reasoning.

The Property Sale Process

Step 1: Establish Authority

Actions:

• Gather your registered LPA
• Get certified copies
• Check the LPA allows property sales (most do, unless specifically restricted)

Potential issue: Some LPAs have restrictions like "cannot sell the family home." Check yours carefully.

Step 2: Get Professional Valuations

Actions:

• Get 2-3 estate agent valuations
• Consider a formal RICS valuation (recommended for high-value properties)
• Document the valuations

Why it matters: You must sell at market value. Low sales can be challenged as not in the donor's best interests.

Step 3: Instruct Professionals

You'll need:

• Estate agent (to market and sell)
• Conveyancing solicitor (to handle legal work)

When instructing:

• Make clear you're acting under LPA
• Provide certified copy of LPA
• Confirm they're experienced with LPA sales

Step 4: Marketing and Sale

The sale process is largely normal:

• Property marketed
• Viewings conducted
• Offers received
• Price negotiated
• Sale agreed

As attorney: You make the decisions the donor would have made.

Step 5: Conveyancing

The legal process includes extra steps for LPA sales:

Standard conveyancing:

• Searches and enquiries
• Contract negotiation
• Exchange of contracts
• Completion

Additional LPA requirements:

• Solicitor verifies LPA authority
• Proof LPA is registered
• Confirmation donor lacks capacity (if relevant)
• ID verification of attorney

Step 6: Completion and Funds

On completion:

• Sale completes
• Funds transferred
• Keys handed over

Important: Sale proceeds go to the DONOR's account, not yours. You must manage the money in their interests.

Dealing with Conveyancers

What They Need From You

Document

Purpose

Certified LPA copy	Proves your authority
Attorney's ID	Proves you are who you claim
Proof of donor's address	Standard requirement
Evidence of incapacity	If donor lacks capacity
Reason for sale	Best interests evidence

Common Conveyancer Concerns

"Is the LPA registered?" Yes, provide the OPG stamp/certificate.

"Does the attorney have authority to sell?" Yes, unless the LPA specifically restricts this.

"Is this in the donor's best interests?" Explain your reasoning (care fees, safety, etc.).

"Where will the funds go?" To the donor's bank account, which you manage under LPA.

Protecting Yourself as Attorney

Document Everything

Keep records of:

• Why sale is needed
• Valuations obtained
• Professionals consulted
• Decisions made
• Where funds went

Why: If anyone challenges the sale, you need evidence you acted properly.

Sell at Market Value

Never accept below-market offers unless there's a very good reason (quick sale to avoid repossession, for example).

Low sales can be challenged by:

• Other family members
• The OPG
• Future executors

Act Transparently

Keep other family members informed:

• Share valuations
• Explain your decisions
• Provide updates on the sale
• Account for the proceeds

Transparency prevents disputes.

Get Professional Advice

For high-value or complex sales, consult:

• A solicitor experienced in LPA matters
• A financial advisor (if proceeds need investing)
• The OPG if you're uncertain

The cost is worth it for major decisions.

Common Challenges

Challenge 1: Family Disagreement

Situation: Other family members oppose the sale.

Solution:

• You have legal authority (if you're the attorney)
• Explain your reasoning
• Document the best interests decision
• They can complain to OPG if they believe you're wrong
• The sale can proceed if you're acting properly

Challenge 2: Property is Jointly Owned

Situation: The donor owns property with someone else (spouse, sibling).

Solution:

• You can only sell the donor's share
• The co-owner must agree to sell
• If they refuse, you may need legal advice
• Their share of proceeds goes to them

Challenge 3: Property Has a Mortgage

Situation: There's still a mortgage on the property.

Solution:

• Mortgage must be repaid from sale proceeds
• Contact lender early in the process
• They may have specific requirements
• Remaining proceeds go to the donor

Challenge 4: Property in Negative Equity

Situation: Property worth less than the mortgage.

Solution:

• Contact lender immediately
• They may agree a shortfall arrangement
• Get legal advice before proceeding
• This is complex—professional help essential

Challenge 5: Tenant in Property

Situation: The property is let to tenants.

Solution:

• Can sell with tenants in place (buyer becomes landlord)
• Or give proper notice to end tenancy
• Follows normal landlord rules
• May affect sale price/interest

Challenge 6: Donor Previously Refused

Situation: The donor said they'd never sell the house.

Solution:

• Past wishes are a factor, but not decisive
• Circumstances may have changed
• If sale is now in their best interests, it can proceed
• Document why circumstances are different

Tax Considerations

Capital Gains Tax

Main residence: Usually exempt from CGT if it was the donor's main home.

But: If the donor has been in care for over 3 years, the exemption may be affected.

Advice: Consult an accountant before selling. You must file any tax returns on the donor's behalf.

Income Tax

Sale proceeds may generate interest income. You must manage the donor's tax affairs.

Inheritance Tax

No immediate IHT on sale—but the proceeds become part of the donor's estate.

Care fee impact: If proceeds are used for care, they reduce the eventual estate anyway.

Managing the Sale Proceeds

Where the Money Goes

Into the donor's account—never your personal account.

Using the Proceeds

You can use the money for:

• Care fees
• The donor's living expenses
• Property maintenance (if they retain another property)
• Medical costs
• Their debts

You CANNOT use it for:

• Your own expenses
• Gifts to family (except small customary gifts)
• Investments that benefit you

Protecting the Funds

If the donor doesn't immediately need all the money:

• Keep it in their name
• Consider safe savings accounts
• Don't make risky investments
• Keep records of where funds are

What About Care Home Fee Rules?

Deprivation of Assets

If selling to "hide money" from care fee assessments, be careful. Councils can:

• Treat the money as still existing
• Assess fees as if the property wasn't sold
• Challenge deliberate deprivation

Legitimate Sales

Selling a house that's genuinely needed to:

• Pay care fees
• Fund living expenses
• Provide for the donor

Is completely legitimate. The timing and reason matter.

Get Advice

If care fees are involved, speak to:

• The local council
• A care fees advisor
• A solicitor specialising in elderly care

Checklist: Selling Property Under LPA

Before sale:

• [ ] LPA is registered with OPG
• [ ] Check LPA doesn't restrict property sales
• [ ] Get 2-3 property valuations
• [ ] Document why sale is in donor's best interests
• [ ] Obtain certified copies of LPA
• [ ] Inform other family members

During sale:

• [ ] Instruct experienced estate agent
• [ ] Instruct solicitor experienced in LPA sales
• [ ] Provide LPA documentation to all parties
• [ ] Accept market-value offer
• [ ] Keep records of all decisions

After sale:

• [ ] Ensure proceeds go to donor's account
• [ ] Record how proceeds are used
• [ ] Consider tax implications
• [ ] Keep other family informed
• [ ] Store all documents safely

Summary

Selling a house under LPA is legally straightforward—your authority to sell comes from the registered LPA document. The complexity is practical: ensuring you act properly, document your decisions, and manage the proceeds correctly.

Key principles:

• Act in the donor's best interests
• Sell at market value
• Document everything
• Keep money in donor's name
• Seek advice for complex situations

Need an LPA before you can sell? Start here →