{"id":72197,"date":"2019-09-09T13:07:15","date_gmt":"2019-09-09T13:07:15","guid":{"rendered":"https:\/\/www.templewealth.co.uk\/?p=72197"},"modified":"2019-09-09T13:07:16","modified_gmt":"2019-09-09T13:07:16","slug":"equity-release","status":"publish","type":"post","link":"https:\/\/www.templewealth.co.uk\/equity-release\/","title":{"rendered":"Equity Release \u2013 surviving divorce by using a Flexible Lifetime Mortgage"},"content":{"rendered":"\n<p>In recent years\nwe have seen the number of people divorcing in retirement increase. This group\nof people need to be aware of a litany of financial pitfalls as they try to divide\na lifetime\u2019s worth of assets.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"576\" src=\"https:\/\/www.templewealth.co.uk\/wp-content\/uploads\/2019\/09\/Equity-Release.jpg\" alt=\"\" class=\"wp-image-72206\" \/><\/figure>\n\n\n\n<!--more-->\n\n\n\n<p>Recent figures from the Office for National Statistics show\nbetween 2005 and 2015, the most recent full year for which data is available,\nthe number of women over the age of 65 getting divorced rose by almost 20%,\nfrom 4,654 to 5,554. The number of men of retirement age getting divorced\nincreased from 8,059 to 8,697, an 8% rise, over the same period.<\/p>\n\n\n\n<p>The ONS put the rise down to older people being \u201cmore connected,\neconomically and socially, than they were before\u201d. Internet dating and people\ncontinuing to work beyond the age of 65, and so being able to support\nthemselves, are thought to be the other reasons for the increase.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">So how can a Lifetime Mortgage support a later life divorce?<\/h4>\n\n\n\n<p>Let look at an example case study. <\/p>\n\n\n\n<p class=\"has-background has-very-light-gray-background-color\">David aged 65 and Sarah aged 63 are both now retired but have decided to go their separate ways. As a result they would like: <\/p>\n\n\n\n<ul><li>For Sarah to stay in the family home so their grandchildren can\ncontinue to stay with her.<\/li><li>More money to help them pay for the immediate costs of the\ndivorce.<\/li><li>Find enough money for Barry to move out and afford a place of\nhis own.<\/li><\/ul>\n\n\n\n<p>After 40 years of marriage David and Sarah have mutually decided\nto divorce and are looking for the best way to move forward. They have two grandchildren,\nwhich Sarah looks after regularly so her daughter can work and save on child\ncare.<\/p>\n\n\n\n<p>David has agreed that Sarah can remain in the family home. His\npension is enough for him to live a comfortable day to day life, but he needs\nsome additional money to cover the immediate costs of the divorce and move out.\n<\/p>\n\n\n\n<p>Sarah receives a moderate pension but has no savings or\ninvestments. Sarah is understandably worried she won\u2019t have enough income until\nshe gets her share of the divorce settlement. Their home in Hampshire which\nthey own outright is worth \u00a3365,000.00. They did seriously consider downsizing\nbut they wish to avoid doubling their moving costs and causing any additional\nemotional stress by selling the family home.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The potential solution:<\/h4>\n\n\n\n<p>A potential solution for both David and Sarah could be to release a lump sum of money to cover the divorce costs using a Flexible Lifetime Mortgage. This would allow Sarah to stay in the family home and for them to cover the cost of David moving into his new property.\u00a0 <\/p>\n\n\n\n<p>Based on their age and property value, they could potentially release or have access up to \u00a3124,100.00 using Legal and Generals Flexible life time mortgage (subject to normal underwriting and valuation). They could receive the maximum loan available in one lump sum. They make no monthly payments although the interest is added to the loan.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Benefits:<\/h4>\n\n\n\n<ul><li>The flexible Lifetime mortgage allows David and Sarah to unlock\nsome of the Equity in their home without having to sell the property. This\navoids paying additional moving costs and the emotional upheaval of losing\ntheir family home.<\/li><li>David and Sarah can release a lump sum from their home to pay\nthe upfront divorce costs such as legal fees. A lifetime mortgage on average 6\n\u2013 8 weeks to complete, whereas selling their home could take months.<\/li><li>The flexible Lifetime Mortgage can help relieve the financial\nstress at an expensive and emotionally difficult time for both parties.<\/li><li>Sarah can continue to care for her grandchildren and remain in\nthe family home. Should she wish to move and down size once the grandchildren\nhave grown up, Sarah can take the Flexible Lifetime Mortgage with her \u2013 subject\nto terms and conditions.<\/li><li>David could use some of the money to pay a substantial deposit\non a new home or if he prefers, use the additional income to pay rent on a\nproperty.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Risks:<\/h4>\n\n\n\n<ul><li>Both David and Sarah should be aware of the risks involved with a product such as a Flexible Lifetime Mortgage<\/li><li>A life time mortgage is a loan secured against their home<\/li><li>Interest is charged on a compounding basis, which means interest is charged on the loan plus interest already added<\/li><li>There will be fees associated with the lifetime mortgage, such as legal fees and arrangement fees<\/li><li>A Lifetime Mortgage will reduce any inheritance available<\/li><li>There may be cheaper ways in which David and Sarah can borrow the money<\/li><li>It may affect their entitlement to any State benefits, and their tax position<\/li><\/ul>\n\n\n\n<p style=\"text-align:center\"><strong>Please note this example is not real and it is for illustration purposes only. This is for a Lifetime Mortgage. To understand the features and risks, ask for a personalised illustration<\/strong><\/p>\n\n\n\n<div class=\"wp-block-media-text alignwide has-very-dark-gray-background-color\"><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"768\" src=\"https:\/\/www.templewealth.co.uk\/wp-content\/uploads\/2017\/07\/John-king-bw-1.jpg\" alt=\"\" class=\"wp-image-71530\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<p style=\"color:#9f9162\" class=\"has-text-color\">\n\nFor more information on Equity Release and Flexible Lifetime Mortgages, contact one of our independent financial advisers, John King on 01329 282882 or send a message to our <a href=\"http:\/\/www.facebook.com\/TempleWM\">Facebook <\/a>or <a href=\"https:\/\/www.templewealth.co.uk\/contact-us\">Contact Us<\/a> page.\n\n<\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In recent years we have seen the number of people divorcing in retirement increase. This group of people need to be aware of a litany of financial pitfalls as they try to divide a lifetime\u2019s worth of assets.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40],"tags":[66,65],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Equity Release \u2013 surviving divorce by using a Flexible Lifetime Mortgage - Temple Wealth<\/title>\n<meta name=\"description\" content=\"In recent years we have seen the number of people divorcing in retirement increase. 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This group of people need to be aware of a litany of financial pitfalls as they try to divide a lifetime\u2019s worth of assets.","_links":{"self":[{"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/posts\/72197"}],"collection":[{"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/comments?post=72197"}],"version-history":[{"count":0,"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/posts\/72197\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/media?parent=72197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/categories?post=72197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.templewealth.co.uk\/wp-json\/wp\/v2\/tags?post=72197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}