Case studies
Hodge Lifetime provides solutions to a variety of financial problems that impact on the day to day lives of the over 55's. Consider the following fictional client case studies, which illustrate the benefits of an Equity Release Scheme.
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Mr Tipping had for many years, since the unfortunate death of his wife, considered visiting Australia to see his son and grandchildren and also to fulfill his ambition to travel extensively around the world.
Unfortunately, the cost of his stay and travelling was in the region of £26,000. This amount was not immediately available and his existing income would not allow him to finance a loan agreement in any way.
Mr. Tipping was able to fulfill his dream by arranging a Lifetime Mortgage Option. This allowed him to free equity from his home to release a cash lump sum of £30,000. This adequately covered the cost of the travelling and also gave him a nest-egg to supplement his income on his return.
Example:
Property value:
£120,000
Age:
62
Loan:
£30,000 – to be repaid on death or if he permanently left the property.
Other Info:
No interest is payable during the life of the lifetime mortgage loan. The fixed rate interest is compounded monthly and added to the loan each year.
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Mr and Mrs Warrilow had a reasonable pension which, allowed them to cover their cost of living. However, they had virtually no savings to provide for any significant purchase.
Unfortunately, they were faced with the daunting prospect of making costly improvements to their kitchen which had become very dated. They did not wish to move from their home and therefore were considering ways to finance the improvements. They were not able to afford the payments of a personal loan and therefore the benefits of an equity release plan (where repayment is not made until their house is sold) was very attractive.
The cost of the improvements was £21,000 and the value of their property was £150,000. A Shared Growth Option allowed the Warrilows to receive £13,154 in exchange for selling a 30% share in their property to Hodge Lifetime (based on their ages of 75 and 72).
As a result the Warrilows were able to undertake the refurbishments to their home and continue with their comfortable lifestyle. In addition they were able to arrange for their next of kin to receive 70% of the sale proceeds of the house after their death.
Next: Obtaining a product illustration
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