29th January 2016
Downsizing means selling your property and buying a less expensive one, using the difference to pay debts, fund purchases or supplement retirement income.
Recently, I had a conversation with a couple in their late 60s who live in a house worth £250,000 in a desirable part of Bournemouth. They still owe around £100,000 on an interest-only mortgage, which they need to repay before their 70th birthdays. This was proving worrisome, as they did not have such capital, and they had not been able to arrange a re-mortgage.
We talked through the options. They could downsize. However, taking into consideration the cost of moving, they would not be able to afford a property in their local area. They would have to look for something a good deal less expensive, which would mean moving to an unfamiliar area, far away from family and friends.
We then looked at equity release. By using such a scheme to fund their property purchase, they could stay in the district that they know and love. When I explained how the scheme could work and what it would mean for them, the lady commented:
“Thank you so much. I have peace of mind for the first time in several years.”
Equity release gives people such as this couple far more choice, and far more control over their lives, enabling them to remain in their beloved family home, or to move to the area they want to live in, rather than be forced to live somewhere that is going to make them miserable in old age.
If you have any questions about the subject matter of this blog, or would like more information on any equity release related point, please do not hesitate to call me on 01489 45 45 45, or to contact in any of ways highlighted on this website.
Equity release is the answer to so many financial questions. If you would like to know more about it, and see if it could be the right move for you, please book an appointment or request a call-back
We will be in touch as soon as possible to arrange a convenient time for a meeting, which is completely free of charge and without obligation.
I'll be in touch as soon as possible. If you'd rather call me in the meantime, please feel free to give me a call on 01489 45 45 45