CASE STUDY THREE 
HOME IMPROVEMENTS

Mr and Mrs H had lived in their family home for many, many years and despite knowing that in reality the best move for them might be to downsize, were not ready for this yet.

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They had raised their family in their home and over the years had got it how they wanted it, and loved the fact that they had nice neighbours and friends and family living close by.

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Their issue was that it had been a number of years since they had really decorated their home and that their needs had now changed from what they were years before.

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When our adviser went to see them, they ideally wanted to raise some money to make home improvements and also have access to money in the future too. They did not want to move home and really wanted to keep their lifetime savings accessible for any instant requirements such as private medical care.

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Our first recommendations were to consider downsizing to raise capital and then to consider using at least some of their savings to reduce the amount required. Next we looked at Lifetime Mortgages as a potential option and also discussed at length how they might feel about what would be left later to their children, and if they wanted to make any kind of repayments of interest at all.

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The clients completed the process of meetings and an application with one of advisers and 6 weeks later had the funds that they needed to make a start on home improvements.

 

The clients wanted to relay their driveway to make it completely flat and therefore safer, re-landscape their garden as they used to love to spend time outdoors, but had let it become overgrown. It was important here to get everything within reaching distance without having to bend down too much whilst tending to plants and flowers. They also updated the interior of their home with new wallpaper, furniture, curtains and after 25 years, a new kitchen.

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They required £25,000 as an initial loan to do this work and also had access to another £25,000 for their future needs of income top ups and holidays.

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Mr and Mrs H  were happy to pay the full interest on the plan, and so benefitted from a reduction on their interest rate of 1%!!!!! They were really happy as they understood that they could stop payments at any time if it was necessary to, with the caveat that this if this did happen, then they would revert back to a higher interest rate.

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The clients, and their children, were ecstatic with the outcome as it meant that they could stay in their home for a few more years, at least until they were ready to downsize, and could get it to how they wanted it – and get back to enjoying living in it again.

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The clients were planning and able to pay the interest every month, meaning that the loan of £25,000 did not increase at all and they knew that if money was ever tight, they could, if needed, either reduce or stop payments, without the worry of losing their home, as with conventional mortgages.