On the road to Equity Release

Later life can be some of the most enjoyable years; making even more memories to last. For many, retirement can be all about discovery and making the most with friends and family…

Childhood sweethearts

Take for example, Ray (71) and Mary (69) from Hampshire. Childhood sweethearts: they’ve been together for over 50 years, buying their first home after they tied the knot. They’ve lived happily in their family home ever since; watching their children grow up and fly the nest.

Their home is a very traditional English cottage. With white windows, it’s constructed of wattle and daub (an environmentally friendly way of building houses) and has a thatched roof, with the property’s value estimated at £650,000.

A lump sum this summer

After hearing lots about Lifetime Mortgages, Ray and Mary have been doing some research. They’re looking into raising £200,000, so they can gift their son Steve and his wife £150,000 to buy a property they’ve seen in a catchment area of a school that they’d love their granddaughter to go to.

With holidays abroad currently a little limited, they’ve also been eyeing up a new motor home they can use to enjoy some future ‘staycations’ a bit closer to home. They’re not alone, with a record number of local holidays predicted this year; Ray will be doing the driving, and Mary the navigating, as they look to explore the UK’s green countryside and blue coastlines.

“With so many happy memories under this roof, we’d never want to live anywhere else.”

We’ve got some great news for Ray and Mary, as here at OneFamily, we’ll consider lending against the following:

  • Thatched roofing - Considered highly environmentally friendly as the materials needed are grown easily and harvested with little mechanical intervention
  • Wattle and Daub – Where woven lattice of wooden strips (wattle) is daubed with a sticky material usually made of wet soil, clay, sand, straw (and sometimes even animal dung!)

Please note, lending for all the above will be subject to the property construction being deemed suitable by the valuer. A specialist building insurance is also required for any ‘thatched roofing’ prior to completion.

A happy conclusion

Ray and Mary discuss the situation with their adviser, before deciding the best option for them is our Lump Sum Interest Payment Option, as their son Steve wishes to contribute towards the interest being charged. He will pay half of the monthly interest payment, with the remaining interest rolling up and added to the loan balance.

If in the future Ray, Mary or Steve wish to cease those payments, they can switch to our Roll-up with Voluntary Payment Option, where they can pay up to 10% of the initial loan amount per year. The payments must come from the borrowers bank account, so Steve would need to transfer over any money he wants to pay to Ray and Mary.

Once the loan completes. Steve and his family move into their new home, while Ray and Mary set off for a week in Cornwall, in their brand-new motor home!

Be the one who can

If you have customers like Ray and Mary, looking to release equity from their homes, then we may have an ideal option for them.

Lifetime Mortgages

We're here to help

Our dedicated team of Telephone Account Managers, our Mortgage Processing team and specialist Underwriters continue to provide you with all the support you need...

Contact us