The aim with Equity Release is to improve your lifestyle whilst maintaining the stability of living in your own home for life and giving you the peace of mind that you will never owe more than the value of your home. Read our recent Equity Release Devon case studies where releasing equity by an Equity Release plan has made a real financial difference.
CASE STUDY 1 – Equity Release for a married couple in their 60’s used to pay off their existing mortgage and help their daughter & grandson stay in their home.
A couple in their mid – 60’s who had just retired and still owed £25,000 on their residential mortgage. Their daughter was going through a divorce, and her estranged husband was unemployed, so not able to pay maintenance. She was facing the prospect of losing the family home as she couldn’t pass the mortgage affordability criteria to enable her to take on the mortgage in her own right. The retiring couple said that they were planning to downsize in 5 years or so and pay off the equity release loan. All of the lenders that they had tried might impose a hefty early repayment penalty if they did this.
How we helped
- Provided independent financial advice
- Researched the whole of the Equity Release market
- Selected a flexible drawdown Lifetime Mortgage from an Equity Release Council member
- Released an initial, tax-free sum of £75,000, with a larger reserve fund should they need any more
- We found a lender that would not impose an early repayment penalty on the sale of the property from year five onward.
Benefits to the clients. The clients now enjoy:
- The knowledge that their daughter and grandson can stay in their family home, despite the divorce
- The knowledge that their grandson doesn’t have to change schools due to his parents divorcing
- Financial security in retirement, with no monthly mortgage repayments
- A drawdown facility without access charges, should they wish to access further funds easily in the future
- The security of a fixed interest rate for life, should they want it
- The knowledge that after they have had the lifetime mortgage for five years that they can downsize and have no early repayment penalties.
CASE STUDY 2 – Equity Release helps to fund the grandchildren’s deposit on a first house, pay for a round the world cruise and reduces Inheritance Tax Liability.
A retired couple in their mid-seventies with three grandchildren wanted to help them buy their first homes rather than rent. They also wanted to travel in style around the world on the trip of a lifetime.
How we helped
- Provided independent financial advice
- Researched the whole of the Equity Release market
- Selected a Lifetime Mortgage from an Equity Release Council member
- Put them in touch with an experienced solicitor who specialises in Equity Release
- Released a tax-free sum of £150,000
- Provided access to a drawdown facility so that the couple could potentially draw further amounts in the future.
Benefits to the clients. The clients now enjoy:
- The delight of seeing their grandchildren settle into their own homes
- A reduced Inheritance Tax liability
- Sufficient cash to fund home improvements
- Peace of mind of a quality education for their grandchildren
- A significantly increased retirement income
- No future monthly repayments.
CASE STUDY 3 – Equity Release used to purchase an apartment in South Devon with panoramic sea views.
A retired couple in their late seventies, married and living in the Midlands with two grandchildren living in Devon. They only saw their grandchildren two or three times per year and were finding the 360-mile round trip more difficult each time. They owned their own bungalow but had always dreamed of owning an apartment with stunning sea views. They had no debts, very little savings put away and a 12-year-old car.
How we helped
- Provided independent financial advice
- Researched the whole of the Equity Release market
- Selected a flexible drawdown Lifetime Mortgage from an Equity Release Council member
- Released an initial, tax-free sum of £95,000 on a penthouse apartment that the couple purchased in South Devon
- Arranged for the drawdown of tax-free sums of £2,000+ if and when needed, without any charges.
The benefits to the clients. The clients now enjoy:
- Being only a 10-minute walk from their son and grandchildren
- Panoramic sea views in an apartment with a lift
- A new car with no maintenance worries
- Comfortably financed hobbies
- Financial security in retirement
- No drawdown charges – resulting in savings should they wish to access their savings fund
- The security of a fixed interest rate for life.
Should you have any queries or require more information on Equity Release, please contact our specialist Equity Release Adviser on 01392 258553. Appointments to get Devon financial advice can be made at either of our offices in Exeter or Exmouth during office hours. However, if it is more convenient, an appointment can be made either at your home address or business premises.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. Written quotations are available on request. Loans are subject to status.
Thompson Jenner Financial Services Ltd is authorised and regulated by the Financial Conduct Authority.