When one of her daughters divorced, all three sisters asked their mum about finding £200,000 so that she could buy her own property. Naturally, Mrs F wanted to help her daughter, and although she had a comfortable income from pensions, the only assets she owned was her home. Mrs F also wanted to reduce her own outgoings, and decided to take professional advice about how she could help her daughter and repay her car loan.
Mrs F came to Chamberlain Stean & West to find out what she needed to do to raise the money. When clients who are elderly or recovering from a traumatic time in their life, and are faced with such a large financial decision, we suggest the immediate family, or a friend who is understanding and sympathetic to their needs, are involved in the discussions and decisions. With Mrs F’s blessing, Chris invited all three of her daughters along to the meetings, so they could be involved throughout the process. With Chris’s guidance and the support of her daughters, reaching a decision and putting the plan in place, was much less stressful than it could otherwise have been.
Chris recommended to Mrs F that the best way for her to raise the money for her daughter was to look at releasing the equity from her home. Chris was able to secure a Lifetime Mortgage for the required amount and made sure there were no early repayment charges. Mrs F had peace of mind that she could reduce her outgoings, whilst also giving her daughter the security of having her own home. A few years later, the time was right for Mrs F to sell the family home, and move to somewhere smaller. She was able to clear the lifetime mortgage with part of the proceeds, without losing out on paying early repayment charges.
This case study, about a lifetime mortgage / home reversion plan, is designed to aid discussion and should not be taken as a recommendation of any particular product or route. To understand the features and risks, please ask for a personalised illustration. No action should be taken without first seeking advice from a suitably qualified adviser.
Chamberlain Stean & West Ltd, which is an appointed representative of Financial Ltd, is authorised and regulated by the Financial Conduct Authority. FCA No. 466922. The Financial Conduct Authority does not regulate trusts and tax planning.