Bill and Joyce

Why Bill and Joyce chose a Property Plan over a lifetime mortgage

Bill and Joyce are in their early 70s and wish they could give more financial help to their two children who are both bringing up young families.

Although Bill has a good final salary pension income, which would continue to be paid to Joyce in the event of his death, this only covers their day-to-day expenses with a bit extra for holidays and emergencies.

They've looked at releasing equity from their home, so that they can give the children an inheritance now, when they most need it – and while Bill and Joyce are alive to see them enjoying it. They would be able to raise sufficient money to make a real difference by taking the maximum available on a lifetime mortgage. But while they're happy with the no negative equity guarantee, they don't like the uncertainty that there may be nothing left after the loan is repaid, or that property prices will need to rise to enable them to raise more money in the future, should they need to. Although some lenders offer equity protection schemes this restricts the amount Bill and Joyce can borrow.

Bill and Joyce are comforted that a Property Plan will allow them to raise the same amount while protecting a minimum share of 20% of the value of their property. This gives them the certainty that there will always be something to raise money against later, or to leave behind as an inheritance for their grandchildren. And, as Retirement Plus does not discount the value of the property up front, like other old style home reversions, it won't prove to be 'poor value' should they die early.

Check that this Property Plan, a type of home reversion plan, will meet your needs if you want to move or sell your home or you want your family to inherit it. You should always seek independent financial and legal advice. If you have not retained a Protected Share we may end up owning a 99.90% share of the property.