Interest On Deferred Payment Agreements

24. September 2021

A payment deferral agreement is an agreement with the local authority that allows people to use the value of their homes to pay for care home fees. If you are entitled to a deferral of payment, it is likely that the Council will not respect the value of your property for the first 12 weeks of your stay in a retirement home. This should allow sufficient time for the agreement to be subject to the order. Read more in our article on 12-week real estate contempt. In Scotland, there are no interest charges while you have the payment deferral agreement. Interest is only collected if the contract is terminated by the person or from 56 days after his death. Interest should then be calculated at a „reasonable rate“ set by the local authority. There are fees and charges related to payment deferral agreements. A payment deferral agreement is a legal agreement with the Council. We will charge a fee on your property to insure the loan….