Mr and Mrs Smith had lived in their home for over 50 years and had no desire to move. However, following a recent heart attack, Mr Smith’s poor health meant additional care was required. With a property valued at £5 million and investments of £1.3 million, Mr and Mrs Smith did not qualify for local authority support and their regular income alone, was not sufficient to meet the ongoing costs of care and running their house.

In order to fund their living costs Mr Smith began selling his investments to raise the capital needed. Whilst this option ensured that Mr Smith could receive the ongoing care he required, by selling the investments they were incurring 20% capital gains tax and reducing future income.


After an initial discussion with our Equity Release Specialist, we recommended and implemented a Lifetime Mortgage of £300,000, at an interest rate fixed for life, that provided Mr and Mrs Smith with sufficient funds to pay 2 years care costs. In addition, we arranged a drawdown facility of £900,000 to ensure further funds where available, to support further care in the future, with no interest chargeable until drawn down in part or in full.

In the event that Mr Smith died, Mrs Smith wanted peace of mind there were no additional charges, should she wish to move in the future. The Lifetime Mortgage recommended provided the flexibility of repaying mortgage and accrued interest from the sale proceeds of the house or transfer the borrowing to her new property subject to the new property meeting the lender’s criteria.