Client requiring income with not other source of capital.
Client: Single Lady aged 65
Category: Retirement Income for Property
Date: April 2020
| The Challenge Client has no private or company pensions plans and very little savings. She owns her home valued at £280,000 with no mortgage. She will receive the State Pension of £8,700 per annum at age 66 but has no other income source. She does not wish to sell her property to downsize and release capital this way. She wants to remain in her home and the area it is situated. |
Our Approach
I described the Lifetime Cash Flow process to her and used this to establish her income requirements.
Service Delivery
We engaged digitally with the client to gather all relevant financial information through a factfinding process, recording what the client wanted to achieve. In this instance, it was to retire now on an income level that would meet all of her monthly committed expenditure with sufficient surplus for a holiday or two each year. She has some savings but will be very reliant on the State Pension.
The Outcome
The only asset the client has to deliver this goal is her home. Based on her age and the value of the property, she is able to release up to £86,000 in capital value in the form of a Lifetime Mortgage. This is an equity release product. Further, the client’s home is unusual in construction and this meant there was only one provider who would lend. The application process was carried out online making the whole exercise paperless.