CONVERT YOUR HOME TO BUY TO LET TO FUND CARE HOME FEES - Equity Release Bournemouth

For free initial advice call:
01202 416856 or 07862 708429
Call: 01202 416856 or 07862 708429
Call Julia on:
07862 708429 or 01202 416856
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CONVERT YOUR HOME TO BUY TO LET TO FUND CARE HOME FEES

Case Studies
Care in Dorset is about £1,000 per week
CASE STUDY: MRS O'REILLY FROM DORSET

Here is Mrs O'Reilly. She is:
• 89;
• Widowed;
• She has suffered a stroke and her children live 3 hours away from Sandbanks, Dorset;
• Her children are concerned that if she has further medical problems, she may need to move into residential care;
• The average cost of a care home in her area is £1,000 per week, which is not affordable to the family;
• Traditional lenders will not lend to Mrs O'Reilly due to her age;
• Her children will be forced to sell her property to fund her care;
NEEDING CARE BUT HOW TO FINANCE IT?

There is a range of Buy-to-Let Mortgages for over 55 years olds which would enable Mrs O'Reilly to raise finance against her property to fund her care.

Her property is worth £250,000 so she can raise up to £110,000.  She can raise the fund for her care in one lump sum, or can borrow a smaller amount up front and borrow more in instalments by taking out further advances when required.  
HOW DOES IT WORK?

  • Mrs O'Reilly could supplement her income to cover her care fees by converting her main residence to a buy to let property.
  • She can afford to pay for her care and still pass on her family home to her children.
  • She can enjoy peace of mind as she knows the loan does not need to be refinanced during her lifetime.
  • She does not incur any property sale costs.
  • She owns an asset which generates ongoing income.
  • She and her estate may still benefit from future capital gains on the asset (subject to the impact of interest rolling up).
  • She, and her family, still have the flexibility to sell the property and realise the remaining equity in the future.
  • If her health recovers she can take out a residential lifetime mortgage and repay the outstanding mortgage.

If Mrs O'Reilly takes out an Over 55 Buy-to-Let Mortgage she does not need to make any repayments, and can use all the cash she has released to fund her care. By taking out this Buy-to-Let Mortgage Mrs O'Reilly has the additional safeguards:

  • No threat of repossession (subject to abiding by the Terms and Condtions).
  • An indefinite term, so she will not need to refinance before she dies.
  • The security of a fixed interest rate for life.
  • The certainty of fixed early repayment charges.  

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Contact Us

Address:  7 Ravine Road, Bournemouth, BH5 2DT
Phone:  07862 708429 or 01202 416856

Julia Crump, trading as DFP Equity Release, is an Appointed Representative of TenetLime Ltd which is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 779271.ng
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