MR AND MRS WILSON & BUYING THEIR DREAM HOME
Mr & Mrs Windsor
• 71 & 73
• Property worth: £500,000
Mr and Mrs Windsor have lived in London their whole lives and have been dreaming of moving to the seaside.
The couple have always had the aspiration that once retired they will have the savings to move down to their favourite place in the world, by the seaside in Sandbanks. Their son, Paul, flew the nesst many years and he also works and lives in London with his young family. They are so proud of Richard and his family and really wish they could spend more time with him and his family.
Mr and Mrs Windsors' dream would be to own a seaside home for Paul and his family to come and holiday to. When Paul was growing up, they used to holiday in Sandbanks, near Poole in Dorset and so they have been enthusiastically house shopping.
Whilst looking into house buying they came across their dream home...at £800,000. Unfortunately, the house is way more than the sale of their own home.
Mr and Mrs Windsor got in touch with an estate agent in Sandbanks to see whether they can find something just as perfect, but a little more in their price range. The estate agent told them a way of potentially being able to get the dream house they saw online. The estate agent told them about equity release and referred them to an expert equity release adviser. Mr and Mrs Windsor had heard about equity release but were unaware that you could use equity release to buy a property! They had their concerns which they raised with their financial adviser who explained the pros and cons of equity release (otherwise known as lifetime mortgage). The couple had their current property back in Wimbledon, London, valued, and it is now worth much more than they bought it for in 1985, and as a result they were offered £500,000. Their financial adviser told them that they could pay the short fall of £300,000 with a lifetime mortgage (or equity release plan as it is otherwise known) on the new house.
INTEREST PAYMENTS OR NOT?
Whilst they did not fit the criteria for a 'Retirement Interest Only' mortgage, their adviser assessed they could afford to pay the interest on the equity release plan (or lifetime mortgage) to stop the £300,000 accumulating interest. Their son Paul wanted his parents to enjoy their retirement and so decided that he would service their interest payments for them. Mr and Mrs Windsor can now enjoy their time relaxing by the seaside, with enough room for the family to come and stay during school holidays.