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@princeperch
Before you take any major decisions you need to get a copy of the will and check how the house is held at the land registry.
If she's now liable for care home fees the house might be held as tenants in common between her and your mum and if so, the council have a challenge to force its sale for care purposes i.e its unlikely they can because your gran doesn't own 100pc of the house and it's essentially ring fenced. If however you sell it and then she gets 300k or whatever then that will possibly go towards the funding of her care.
In short, dependant on what the will says and how the house is held and how much she has in savings you might be better off doing nothing at the moment because by selling it you might be inadvertently opening Pandoras box.