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Case Study Two

Finding a way for Tom and Margaret to stay in their family home, thanks to Equity Release

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Having lived in the family home since they were newly-weds over 40 years ago, Tom and Margaret’s home meant a lot to them.  It was where they had brought up their three children and shared many happy memories.  They had always hoped to be able to stay there in to their old age. However, in recent years their thoughts turned to planning for the income they needed to meet their everyday expenses, with a view to having a little left over to be able to enjoy their retirement as much as possible.

 

Finding income

The couple’s income from their state pensions and Margaret’s Disability Living Allowance, was just about enough to cover everyday expenses, but their family home required some considerable maintenance, and they wanted to find a way to ensure they had the income they needed as they grew older.

 

To sell or not to sell

With an outstanding mortgage of nearly £40,000, no assets and no financial help available, they felt they had no choice other than to sell the family home and downsize to a smaller property in a less expensive area. However, the stress caused by the thought of moving out of their much loved home and moving away from family and friends, was too much for Tom, and he suffered a serious anxiety attack.  The family realised that they needed to find a way for their mum and dad to stay in their home, and came to us for advice.

 

Coping with health issues

During our first meeting with the couple and their daughter Jane, it became apparent that both Tom and Margaret had ongoing health problems, both suffering with diabetes and other complications. In addition to coping with their ill health, they were getting increasingly concerned about their interest only mortgage, which was due to be paid in just over a year’s time.  We discussed the option of Equity Release, and explained that due to their health issues and other lifestyle factors, they would be eligible for an enhanced lifetime mortgage.

 

The solution

An enhanced lifetime mortgage is a type of lifetime mortgage designed for those who have health issues, due to illness or an ‘impaired lifestyle’. The terms are more generous, and allow for higher borrowing.  Through our extensive research, we found a solution which far exceeded Tom and Margaret’s hopes. The Enhanced Lump Sum Plus Lifetime Mortgage allowed Tom and Margaret to pay off their outstanding mortgage, which meant they could stay in their family home.  The arrangement also meant that they could maximise their borrowing to pay for the new kitchen and bathroom they so desperately needed, whilst providing the funds they needed to have an ongoing income, plus a little extra to enjoy some comfort that previously they could only have dreamed of. 

 

 

THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.

 

WHEN YOU APPLY FOR A LIFETIME MORTGAGE, THERE IS A FEE OF £495 ON APPLICATION, PAYABLE TO OMNI FINANCIAL LIMITED.  WE WILL ALSO BE PAID COMMISSION FROM THE COMPANY THAT LENDS YOU THE MONEY OR BUYS YOUR HOME.

 

Our Services

Our Independent Financial Advisers offer a comprehensive range of financial services, tailored to your particular requirements. Click on the images below to find out more about the services we provide. 

 

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