Case Study
Mr Bates*, Wiltshire
In 2006, Mr Bates aged 70, released £37,519 from his £85,000 home; the maximum amount available to him, which meant that Retirement Plus had an initial share of 44.14% of his property. A year later, Mr Bates sold his home for £92,000 and in this time the Retirement Plus share had only risen to 46.49% meaning that Mr Bates walked away with 53.51% – a further cash lump sum of £46,635.
A wise choice
Mr Bates benefited from an increase in property prices which in turn affected the value of his house. The flexible Retirement Plus Property Plan that Mr Bates opted for meant that on the sale of his property he received an extra, final lump sum – if he had chosen a standard home reversion product he wouldn’t have received any money at all, as he would have sold his home on day one.
His broker says
“With any other home reversion plan Mr Bates’ dream of moving back to the Dominican Republic would not have become a reality as the provider wouldn’t have paid him anything from the sale of his house. I’m pleased that he chose to go with the Retirement Plus plan as now he’s a very happy man and having the time of his life.”
Tom Moloney, NHFA
*Please note the facts are correct but the name has been changed to protect customer confidentiality.