Mr & Mrs Cunningham -Equity Release used in helping with divorce settlements

Divorce is never a pleasant experience to go through. The Cunningham's found comfort in the fact that they could use their marital home to raise funds required to finalise their divorce.

Roshan Percy

1 min read

The Challenge:

Mr. Cunningham (71) and Mrs. Cunningham (69) were facing a difficult situation – an amicable divorce. While they agreed on remaining friendly, dividing their assets, particularly their valuable marital home valued at £2 million, presented a challenge. Mrs. Cunningham wished to stay in the house, but their savings fell short of the full settlement amount required to buy out Mr. Cunningham's share. Traditional mortgage options were out of reach due to her age and income.

The Solution:

Fortunately, Mrs. Cunningham found James, a whole-of-market equity release broker. After understanding her situation, James recommended a lifetime mortgage. This product allowed Mrs. Cunningham to access £500,000 of the equity built up in her home. Importantly, the interest rate was fixed for life, providing her with financial certainty and peace of mind.

The Outcome:

The £500,000 released through the lifetime mortgage enabled Mrs. Cunningham to meet the agreed settlement amount, allowing Mr. Cunningham to purchase a new home and finalize the divorce. This solution ensured a smoother and less stressful transition for both parties.

Benefits:

  • Mrs. Cunningham retained her cherished home: She was able to stay in the familiar and comfortable environment she desired.

  • Financial Security: The lifetime mortgage provided her with the necessary funds without the burden of monthly repayments.

  • Stress-free Divorce Settlement: Accessing the equity facilitated a quicker and more amicable resolution for both Mr. and Mrs. Cunningham.

  • Fixed Interest Rate: The lifetime mortgage offered peace of mind with a fixed interest rate, protecting her from future market fluctuations.

Conclusion:

This case study demonstrates how equity release can be a valuable tool in navigating complex financial situations, particularly during divorce proceedings. With careful planning and expert advice, accessing the equity in a property can facilitate a smooth transition for all parties involved.