A great benefit of releasing money from your home in the form of a Lifetime Mortgage is to enjoy your retirement. You may perhaps spend the money on exotic holidays and cruises or visiting family and friends abroad but some prefer to spend money on something ‘longer lasting’ in the form of a static caravan or motor-home.
Typically the cost of these can be in excess of £20-30,000 not including site fees or on-going running costs. So how can my clients, all of retirement age, afford to make this purchase?
They may be fortunate to have the capital available or be able to raise the funds through a personal loan, but for many the cost would be too high. One solution may be to take an initial loan with a Lifetime Mortgage along with a draw-down or cash reserve facility.
Recently clients asked me if was possible to raise sufficient capital, a sum of £28,000, to purchase a static caravan including their first 12 months site fees. They had discussed various options with their family, all of whom thought it a great idea as they could see the advantage of cheaper holidays.
For the clients, it would be opportunity to get way for extended periods, have the family with them when it suited them and the particular site had been a favourite of theirs for caravan holidays over many years.
Having discussed their options with clients and their family I was able to recommend a Lifetime Mortgage for an initial amount of £28,000 with a cash-reserve facility for them to draw-on in the future, to provide the finance for on-going site and maintenance fees.
In addition, I have advised clients wanting to purchase a motor-home to provide an opportunity to travel around the UK, and in one particular case, even as far as travelling around Europe. Being retired with more time on their hands and still in good health, they wanted to make the most of life by ‘getting out and about’ as often as possible.
With a reduced pension income the cost of hotels and accommodation was too expensive, and so for them a solution was to purchase a luxury motor-home which they could use, as and when they liked. The last I heard from them is they are currently touring France, making good use of their new motor home.