Making Life Easier

Mrs Perry is aged 59 and lives alone in a 2-bedroom bungalow in Somerset. Last year, Mrs Perry suffered from a stroke, resulting in her leaving full-time employment.

Over the last year, Mrs Perry has found certain aspects of her home difficult to maintain, so she’d like to make a few changes, including a new kitchen, new carpets and some new furniture. She’d also like to book a cruise around the Mediterranean for a relaxing holiday.

Mrs Perry was fortunate enough to be able to clear her mortgage several years ago, so she decides to make her home work for her by unlocking part of its value through equity release. This will give her the money she needs for the home improvements and holiday.

Due to her health condition, she opts for a more 2 life “enhanced protected” plan, since this takes her age, property value and health into consideration and guarantees an inheritance for her family.  Mrs Perry can release a maximum of £50,000; however, she’s worked out that she only actually needs £30,000, 60% of the potential release amount.

By taking this smaller amount, she can now protect 40% of her property’s value as a guaranteed inheritance for her two sons. This means that the amount to be repaid at the end of the loan will never exceed 60% of her home’s value. She will also have a Cash Facility of £20,000 which she may be able to draw upon 6 months after her Initial Lump Sum Loan completes (subject to the prevailing criteria at the time of application for further funds).

This is not an actual case and is for illustrative purposes only.