Case Study
Mr & Mrs Webster*, Bolton
In 2008 Mr and Mrs Webster, aged 71 and 70 respectively, inherited a 60% share of the family home they had lived in for 20 years. Keen to remain living in the house they decided to buy the remaining 40%. The property was valued at £308,000 and the Websters took out a Retirement Plus Property Plan receiving the maximum amount of £128,282 which allowed them to pay the £123,000 for the 40% and have a few thousand pounds to boost their pensions. Retirement Plus’s starting share was 41.65% increasing to 99.90% after 9 years and 2 months.
Where there's a will ...
Mr and Mrs Webster looked initially at a Lifetime mortgage but couldn’t raise enough cash. Then they discovered that they could raise the money with a standard home reversion provider but they would effectively lose ownership of their home on day one. The Retirement Plus Property Plan they opted for allows for any future life changes the couple may experience and can be transported to another property – such as a possible downsize, later.
Their broker says
“Older couples often just don’t want to move out of the family home. In this case we recommended the most flexible home reversion we could to help the Websters raise the money they needed to buy out the other shareholder. They are delighted they didn’t have to move as they were dreading it. We are very pleased with the Property Plan – it met their needs now and still offers some flexibility to them in the future."
Peter French, Troy, French & Partners
*Please note the facts are correct but the name and photograph have been changed to protect customer confidentiality.