How Clive and Sarah were able to pay for a new kitchen and help their son onto the property ladder

Clive and Sarah are a retired couple with no savings. They asked us to see how they could find the money they needed for a new kitchen and to help their son get on the property ladder.

The couple are retired and in their early 70s. They live in a three-bedroom, semi-detached house in a beautiful, tree-lined street on the outskirts of York. After working hard for many years, Clive as a warehouse manager and Sarah as a supermarket cashier, they had managed to pay off their mortgage some years ago and are enjoying their retirement.

A lifetime home

The couple bought their home when they got married in their late 20s, at a cost of £8,600. Not a lot in today’s terms, but mortgage repayments were a stretch for them in 1977 and even more so when Sarah stopped work for a few years when their son, William, was born in 1978. Their property is now valued in the region of £300,000. They love their home and have no plans to move but would like to do some improvements to make things even more comfortable at home.

A helping hand for their son

Clive and Sarah dearly wanted to be able to help their only son and his young family onto the property ladder. William is 42, works as an NHS nurse in central York and has been renting for years. He hasn’t been able to save a deposit for a property and he and his family felt trapped in rented accommodation.

Equity release as a solution

Our specialist adviser discussed Clive and Sarah’s situation and recommended a lifetime mortgage, which allowed them to release a lump sum of £100,000 from their house. From this, Clive and Sarah spent £22,000 on their new dream kitchen and £13,000 on a climate-controlled conservatory. This left £65,000 to give to William. 

Benefits for Clive and Sarah

Taking £100,000 out of the value of their home enabled Clive and Sarah to have the home improvements they wanted. In addition, the value of their house is likely to have increased as a direct result of making the improvements. Their lifestyle in retirement remains the same as before, as the lifetime mortgage does not require repayments. The interest charged builds up and is repaid at the same time as the lifetime mortgage. This will happen when they eventually move into a care home or pass away.

A brighter future for William

They were able to give William a substantial deposit to put towards his own home. A larger deposit means he was able to get one of the best mortgage rates available and his monthly mortgage repayment is less than the monthly rent he was paying. This means he now has money for things like family holidays and savings.

As the lifetime mortgage has reduced the value of Clive and Sarah’s house, William is now likely to inherit less when they die, but he will still benefit from any growth in the value of his parents’ home.

Book a review of your finances

To book a no obligation initial consultation, which will take place by phone, call 08000 85 85 90 or email or contact your usual Lighthouse Financial Adviser.


The initial consultation is designed to discover whether or not you would benefit from financial advice and there is no obligation on either side to proceed further. Any advice related fees will be clarified with you before any commitment to proceed.

* We have changed real names and other details to preserve anonymity. All financial details reflect the circumstances.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration. Equity release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate.