Case Study
Mr & Mrs Hibbert*, East Yorkshire
Mr and Mrs Hibbert, aged 73 and 80 respectively, wanted to release equity from their £200,000 property. They needed the money to supplement their pensions and to repay their existing mortgage. The thought of moving to something smaller had crossed their minds but they didn’t want to leave their family home, or their friends.
The original idea was to use a Retirement Plus Property Plan but due to Mr Hibbert being younger than his wife the maximum amount available was £96,020 - not enough for their needs. However, it turned out that Mr Hibbert’s life expectancy was a lot lower than a normal 73 year old’s, so Retirement Plus was able to offer its Impaired Life Property Plan. This would allow a greater release of capital. Under this scheme, Retirement Plus’s initial share in the property of 56.82% will reach a maximum share of 99.90% after 9 years and 6 months.
Options to suit special needs
By choosing the Impaired Life option, Mr and Mrs Hibbert were able to release their tax-free lump sum of £113,640. And, having paid off their mortgage, they also save themselves £525 a month. The couple also has the comfort of knowing that the plan is portable so that in the future, if they need to downsize, they can move to another property.
Their broker says
“At first my clients were a bit despondent with the amount offered but when we looked at the options available from Retirement Plus we realised that, due to Mr Hibbert’s ill health, he might qualify for the Impaired Life plan. The whole process of managing the GP report and the medical underwriting assessment to confirmation was handled by Retirement Plus all within four weeks. I was very happy to let the client know that the extra money would now be forthcoming. It’s so nice when you can help out and see them enjoying their lives together.”
Gary Quick, specialist equity release adviser*Please note the facts are correct but the name and photograph have been changed to protect customer confidentiality.