Equity Release Case Studies

Equity Release case study 1. Mr and Mrs B.

Henry is 68 and Valerie is 63.

The clients had been considering equity release for 2 years.

Having recently moved, much of their savings had been spent and they were looking to raise money for some home improvements, some good holidays and to repay their credit cards. As keen photographers they also wanted to buy some new equipment costing £2,000.

They were also keen to set up an emergency fund for further home improvements and unforeseen events. A lifetime mortgage was recommended which allowed them to raise the cash they needed now and which also had a cash reserve facility should they need it in the future.

Equity Release case study 2. Mr and Mrs K

The clients are 65 and 67.

Having considered equity release for a couple of months, Mr and Mrs K decided that they wanted to raise £35,000 as a gift for their grand-daughter as a deposit on a flat.

They were recommended an interest payment lifetime mortgage as they had the income to support the interest payments each month and it meant that the loan did not increase over time.

Equity Release case study 3. Mr & Mrs D

Alan is 75 and June is 73.

They have lived in their home which is valued at £265000 for many years and do not wish to move. Their outstanding mortgage was £43000 and they had an overdraft, credit cards bills and a loan which totalled £28000. All of their savings were exhausted and they did not have sufficient income to cover their commitments.

Equity Release with a Lifetime mortgage settled the outstanding £71000 debt. It also gave them a facility of an additional amount as an emergency fund.

As their outgoings have now dramatically reduced and they don’t have the constant worry of paying their debts, they have started enjoying life again and are well able to live within their income.

Equity Release case study 4. Mr & Mrs C

Tony is 86 and Barbara is 83.

Tony had a stroke 2 years ago and is bed ridden. He needs intensive home nursing which costs £4,000 per month. Two years ago they had savings of over £100,000 but they are now down to their last £20,000. Tony has a short life expectancy and Barbara will not allow him to go into a home. It was their son who suggested to Barbara that she look at Equity Release to enable care in home to continue.

With a lifetime mortgage, they released an initial amount of £20,000 with a drawdown facility available of £150,000 which allowed Barbara to continue looking after her husband without the worry of how to finance the care.

Equity Release case study 5. Mr and Mrs S

The clients are aged 71 and 75

The clients had an outstanding interest only mortgage of £40,000 but needed further funds to extend their dining room.

Having approached their existing lender they were informed that they could not increase the mortgage due to their age.

As a solution, they took out a lifetime mortgage which allowed them to clear their existing mortgage and raise the further funds for the home improvement. An interest payment lifetime mortgage was recommended as the clients had the income to support the mortgage and they didn’t want to erode the equity in their property.

Equity Release case study 6. Mrs J

Sarah is 64 and has recently lost her husband. She has 4 children and they all live in different areas of the country.

They have all enjoyed many years holidaying in the New Forest and Sarah decided to raise money on equity release to buy a mobile home in the area. Her family pay for the annual ground rent and upkeep of the home. This means all of the family can have constant weekend breaks and holidays and Sarah sees much more of her children and grandchildren in a wonderful location.

Equity Release case study 7. Mr and Mrs L

John is 66 and Julia are 65.

They have recently retired. For many years they had been living in Lincoln but decided to move to Oxford to be close to their son and his family.

After selling their home they were left with £130,000. In total, to move into the house of their choice and cover moving expenses, they needed £180,000 so they used equity release to bridge the gap.

They are now happily settled in Oxford and enjoying their retirement.

Interesting Stories about Equity Release and what clients like to do with their funds.

One lady bought a pink Cadillac, someone else bought a share in a racehorse – we even had someone raise the money to buy a golf lodge in Thailand! Lady in her 80’s raised £350,000 to give to her local ‘Cat’s Home’.

For more information on Equity Release and what it could do for you read more here.