The later stages of life often come with unique financial challenges, particularly when ensuring the best possible care for elderly individuals. In this case study, we share the heartening story of an elderly lady in her 80s who faced the daunting reality of rising care costs and diminishing savings. Her journey sheds light on the importance of later-life financial planning and the invaluable role we played in securing her future.
The Challenge
We recently had the privilege of assisting a remarkable lady in her 80s who had transitioned to a care home for her well-being and comfort. The care costs presented a formidable financial hurdle, nearing a staggering £8,000 per month. Once substantial, her lifetime savings and investments were rapidly depleting in the face of these escalating expenses.
Our Solution
The solution we devised for our client was both pragmatic and empathetic. She owned a debt-free property with over £1 million in equity, an asset that could help secure her future. While selling the property was the ultimate goal, the slow-paced property market posed a challenge. To ensure her immediate financial security, we initiated a plan to release a portion of the equity to cover a minimum of 12 months’ care costs.
Key Highlights
12-Month Bridge Loan
Our client opted for a 12-month bridge loan, a financial instrument that offered her the flexibility and time to sell the property on her terms. This facilitated the release of over £100,000 in equity from her property, ensuring that she had the necessary funds to cover her care expenses and a secure and comfortable living environment for the foreseeable future.
Sale of Property as Repayment Vehicle
As part of our financial planning, we strategised to use the sale of the property itself as the repayment vehicle for the bridge loan. This ensured that our client wouldn’t be burdened with additional monthly payments when she needed peace of mind the most.
The Outcome
Our client’s story underscores the significance of later-life financial planning and the vital role our expertise played in securing her dignity and peace of mind during her golden years. The release of equity from her property enabled her to continue receiving quality care without any financial stress.
At Hayes Finance, we are deeply committed to empowering seniors to enjoy their retirement years with grace and security. If you or someone you know is facing similar financial challenges during their later years, please don’t hesitate to contact us. Our experts are here to provide tailored solutions and compassionate guidance to ensure the best possible quality of life for you or your loved ones.
Get in touch with us today if you or someone you know could benefit from expert advice on later-life financial planning. We provide the support and solutions you need for a dignified and secure retirement.
