Case studies
“Gordon Cunningham, specialist equity release adviser at Bower Retirement Services describes a case where he recommended a Bridgewater reversion plan to fund a new home purchase.”
Purchasing a new home
Mr & Mrs Curtis*, both retired, lived in a large 1930s bungalow in Kent valued at £220,000. Like many people in similar circumstances, the Curtis' had decided that their quality of life would be greatly improved by moving nearer to their family and to a nicer area with a property which was far more suitable for their lifestyle.
They found a smaller more manageable modern bungalow in Eastbourne, East Sussex, which was close to one of their daughters and had a purchase price of £172,000.
Mr & Mrs Curtis' daughter contacted Bower Retirement Services on their behalf, and arranged a meeting with the Curtis' and their family. During the meeting they realised that the purchase of the new property didn’t need to be funded purely from the existing equity in their current property or their cash resources.
Gordon the adviser felt that the most appropriate recommendation would be a home reversion plan through specialist reversion provider, Bridgewater Equity Release.
Reversions can appeal to those who are ‘trading down’ as it allows them to release even more value from their home if needed and the customers can remain in the property, completely rent-free, for the rest of their lives, or until they move into permanent long term care. There is the added benefit that the provider and the adviser are all FSA-regulated and governed by the principles of Treating Customers Fairly. Specifically, Bridgewater Equity Release are members of the Safe Home Income Plans (SHIP) trade body which offers a number of further guarantees to customers.
Bridgewater received the application and agreed to the provision of the home reversion plan. The Curtis' would be using the released equity to repay a lifetime mortgage of £106,930, £20,000 would pay for the building of a new conservatory and the remainder would cover the costs of moving, decoration and new furniture.
*The client's name has been changed for the purposes of this article to protect their anonymity.
