The situation

Mrs Fereby decided to stay in her home after the passing of her husband. With a lifetime of memories built within the home, that was the place where she was happiest. The potential for Mrs Fereby to remain in her home was severely impacted once she was diagnosed with dementia. Sadly, as is often the case, it became too much to complete day-to-day tasks and so there was a need to bring in a care company.

While Mrs Fereby had a state pension, attendance allowance, and had built up a private pension, the cost of care still left her with a significant shortfall. With charges of £1,400 per week, the shortfall stood at £707 equating to £37,000 per year.

While Mrs Fereby was intent on staying in her own home, her two sons were growing increasingly concerned for her welfare. They believed that a care home may well be the best solution as this would allow for the 24/7 care that was needed.

Potential solution

With a need to access sufficient funds to ensure that Mrs Fereby could receive the care that was required, there was a need to explore the solutions that existed. This led to one of Mrs Fereby’s sons arranging to meet with a financial adviser. The potential solution that was presented to the family was in the form of equity release. More specifically, it was an Enhanced Lifetime Mortgage. How this would be set up would allow Mrs Fereby to access the funds that she needed to pay for her ongoing care costs.

After opting to go ahead with this, Mrs Fereby was able to take an initial £20,000 from the equity in her home. She was also able to continue to take £18,500 every six months to ensure that her care costs were continually met.

Two years later

Mrs Fereby sadly passed away two years down the line. However, by taking advantage of the equity in her property, she was able to stay in the home that she loved and receive all of the care that she needed. At the time of Mrs Fereby’s passing, £119,000 worth of equity had been utilised. By this time the house was now worth £1,100,000 meaning that the equity release could easily be repaid and there was still a significant inheritance to pass down.