Patricia, aged 72, was a recent divorcee. Following a financial settlement, she was looking to purchase a new home that would suit her needs. We recommended a Lifetime Mortgage.
Patricia had already retired and was receiving pension income from both the State and an Occupational Pension Scheme.
Following the divorce, Patricia’s former matrimonial home had been sold. Under the terms of the financial settlement, she received a cash sum, together with a pension sharing order of £300 per month against her former husband’s Occupational Pension. Of the cash sum, £200,000 was available for house purchase.
Patricia needed help purchasing a new home. However, she had some concerns.
Because she has mobility issues, Patricia wanted her new home to be a bungalow so that she wouldn’t have to struggle with stairs; however, this limited her choice of property.
She also wanted to move close to her daughter and her friends. Unfortunately, property prices in the area she wished to purchase were greater than her available cash sum.
When Patricia found a suitable property, at a price of £255,000, we arranged a Lifetime Mortgage.
This had an initial advance of £65,000, and a reserve facility of £30,498.
With the additional funds made available from the Lifetime Mortgage, Patricia was able to purchase the property, which she could not otherwise have done.
£10,000 of her available cash sum was used to cover legal costs and other moving expenses, with a small amount being retained as an emergency cash reserve.
Having access to a cash reserve in the event of any future unexpected need gives Patricia peace of mind.