This is for illustrative purposes only and does not constitute as advice.
Funding Care & Remaining in her Home
Ms Jackson is aged 80 and living in a 3-bedroom detached property in Rochester. Unfortunately, she suffers from COPD and Dementia and she requires a live-in carer to support her on a daily basis. Her savings have been reduced to £4000 and both Ms Jackson, and her family, wanted the family to have power of attorney to support her desire to remain at home with care support.
Medway Council has completed an assessment of her income and expenditure and awarded support towards her care costs of £430 per week which after taking into consideration her income and care expenditure, left her with a shortfall of £11672 per annum to meet her costs.
After consideration was given to Long Term Care Annuity Quotes, a lifetime mortgage was set up with an initial drawdown of £10,000 to support her first year of care costs with a reserve facility made available by Legal and General for a further £99,500 to support her future care costs helping her stay in her home for around 8 years subject to future costs.
The interest on this was to be rolled up but the family wanted the best for their mother in her remaining years alive.
- Interest Fixed at Oustet for life
- Interest rolling up so debt increasing reducing estate value
- Future drawdown amounts only attract interest when funds received
- No negative equity guarantee
- Future drawdown amounts are subject to interest rates at the time
- Drawdown Facility for future use provided
- The client remains in their home with no moving-related costs
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage. Some buy to let mortgages are not regulated by the Financial Conduct Authority.
Equity Release, Lifetime Mortgages & Home Reversion plans will reduce the value of your estate and can affect your eligibility for means tested benefits.
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The guidance and/or information contained within this website is subject to the UK regulatory regime, and therefore targeted at consumers based in the UK.
Later Life Financial Advice is a trading style of Kent Financial Consultants Ltd which is an appointed representative of Quilter Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Quilter Financial Services Ltd is entered on the FCA register under reference 440718.
