My father has recently moved into a care home permanently. How can I release money from his mortgage-free property to pay his care home fees?

You can sell the house if your POA stipulates it, mine did. But I would question you being able to take a loan out on it since you are not the legal owner. And a loan would need to be paid back. Reversed mortgage, Dad has to live in the house. Your only option, IMO, is to sell the home at Market rate in case Medicaid maybe in Dad's future. Then its cut and dry. You put the proceeds somewhere where interest is being made. You just keep paying from that money until its gone. Hopefully the AL excepts Medicaid, sometimes you need to pay for at least for two years before u can apply for Medicaid.

If Dad ever needs Medicaid, the home he lived in is his ownly exempt property. If he has another home, rental property or a pc of land, they must be sold for his care. Best thing, talk to a Medicaid caseworker, Medicaid planner or an Elder Lawyer.

Time to see an elder law attorney for options.
As long as your POA stipulates that you can sell property for your principal then you can.
Be certain the funds are placed in his name, with you as his POA.

Yes I already have Lasting Power Of Attorney for Property and Finances and Health and Wellbeing.

You will need to have paperwork authorizing you to act on his behalf: a power of attorney or a living trust listing you as a successor trustee if the home is titled to the trust.

If you don’t already have this, you will need a lawyer to help you get authorization from the appropriate court.

Do you hold Durable financial POA for him?

Does anyone live in the home?

You'd have to take out a home equity loan with interest, or sell the house to get the funds to pay for your dad's care.