Equity Release Case Studies
Examples of some recent Equity Release applications.
Bachelor aged 63, with no close relatives, used an equity release plan to raise a cash sum of £20,000, from the value tied up in his home, in order to realise his long standing ambition of visiting Kenya and going on safari. His comment on returning home was “the best holiday I have ever had!”
Married couple, both aged 70 years, were struggling to meet the continuing monthly cost of £350 on their £60,000 ”interest only” payment mortgage. They had insufficient savings or investments that would allow them to pay off this mortgage and so their limited pension income was “under pressure”. They used an equity release plan to raise sufficient funds, from the value in their home, that would allow them to redeem this mortgage whilst, at the same time, their retirement income benefited from the elimination of the monthly mortgage payments.
A divorced lady enjoyed her holidays in Turkey whilst she was working. Now retired, and with no close family, she has used an equity release plan to raise the sum of £40,000, from the value in her home, that will enable her to buy her own holiday flat in Turkey. Rental income, when not using the flat herself, will help fund future travel and property maintenance expenses.
A widow wished to assist her granddaughter purchase her first home. A sum of £30,000 was raised with an equity release plan.
Married couple in their mid 60s wanted to assist their son with his first property purchase. They used an equity release plan to raise £70,000 against the value of their home This action also reduced the potential inheritance tax liability that existed on their joint estate.
Married couple with a high value home in London wanted to reduce the potential inheritance tax liability on their joint estate. They raised a sum of £450,000 through an equity release scheme and then made lifetime gifts from this sum to family members.
Husband aged 63 wanted to retire early, but his employer’s occupational pension scheme would not provide his full pension until he reached his 65th birthday. An equity release plan was established to provide sufficient cash to replace his salary until he reached his 65th birthday, thus allowing the early retirement and no loss of pension rights.
Widow wished to move from her terraced house into a newly built apartment by the sea. Following the sale of her house, an equity release plan was used to “top up” the capital achieved from the house sale and allow her to make a cash purchase of her new home.
A recently divorced lady wished to raise sufficient funds to allow her to buy out her ex husband’s interest in their jointly owned property. A sum of £100,000 was raised through an equity release plan which allowed the transfer of the property into single ownership.
Retired bachelor’s home was in need of urgent attention as a direct result of a leaking roof and poor damp course protection. Water penetration had progressed throughout all floors of the property including the cellar. There was some damp rot also. Equity release provided the necessary funds to undertake the repairs and also to modernise the kitchen. The end result was a substantial increase in the property’s value.
A professional landlord wished to raise cash to assist with additional residential investment property purchases. The use of an equity release plan on two of his investment properties allowed the necessary cash to be raised without any loss of rental income. The alternative of raising a mortgage against the properties would have resulted in monthly mortgage repayments which would have eroded the rental income.
Retired couple wished to purchase a static caravan home on a holiday park close to the sea which they intend to use as a week-end retreat. Sufficient cash was raised with an equity release plan secured against their existing home.
Single retired lady wished to “downsize” to a smaller property and reduce her living expenses. However, upon completion of her sale, there was insufficient equity, following redemption of her mortgage, to allow a cash purchase of her proposed new home. A new mortgage to cover the shortfall was not affordable from pension income. An equity release plan was established, as the alternative, to provide the cash “top up” of £40,000 to allow completion of her purchase.
