Chris Davies (71) and his wife Ruth (70) have lived in the same property for 34 years. Chris has started to suffer with arthritis and has found that negotiating the stairs in their home and the general maintaining of the property more and more difficult.
Because of this, they have been looking at moving to a bungalow in the same area which they feel will be more manageable for them.
Their property had been valued at £190,000 but the bungalow they had found and fell in love with was on the market for £215,000. They both receive a pension which takes care of their day to day expenses they have, but this hasn’t allowed them to add to their current savings.
The savings they have act as an emergency fund for them but was not enough to fund the shortfall and would have left them without any financial safety net if they had used it, which was of concern to them.
Having consulted one of our qualified Equity Release advisers we were able to secure an equity release mortgage on the new property for £25,000 which, with the proceeds from selling their house for £190,000, enabled them to move into their new home without having
to use their savings.
As part of the application we arranged a reserve facility of £46,000 which will allow them to draw down additional funds in the future should they ever need to. This gave Mr and Mrs Davies added peace of mind knowing that they had a rainy day fund beyond their savings should they require it in the future.
This article was featured in a recent Wise Words newsletter