A Retirement Investment

Turning a Dream into a Plan

At 70 years old, our customer owned a home valued at nearly £1 million on the South Coast of England. He was keen to purchase a lodge, attracted by its prime location and high rental potential. Beyond the investment opportunity, he wanted a place to enjoy during quieter periods.

Finding the Right Financial Solution

Initially, he explored hire purchase (HP) to fund the purchase. However, the repayments on £300,000 over a maximum of 7 years were unworkable given his retired status. Seeking a more suitable option, he chose equity release, or a lifetime mortgage, which allowed him to access the funds needed without monthly repayment pressures. The loan would only need to be repaid upon his passing or the sale of his home.

Making the Purchase Happen

The lodge was priced at nearly £390,000. With £90,000 from his savings as a deposit, he used equity release to fund the remaining £300,000. This approach allowed him to secure the lodge while keeping his financial commitments manageable.

Enjoying the Best of Both Worlds

Now, he’s the proud owner of a beautiful lodge, enjoying it during quieter times and benefiting from its strong rental potential. By choosing equity release, he achieved his goals without stress, combining leisure and investment in a way that works for his lifestyle.

At a Glance:

– Customer age: 70
– Property value: Nearly £1 million
– Lodge price: £390,000
– Deposit: £90,000 (from savings)
– Balance: £300,000 via lifetime mortgage
– No monthly repayments—loan repaid upon sale of house or passing