subject: How to Make your Parents Happy in Retirement [print this page] How to Make your Parents Happy in Retirement
Are your parents really enjoying their retirement? Perhaps they have continued to work when you thought they may have wound down? Or maybe they are not taking those holidays you thought they would, or taking time out to spend with their grandchildren?
Often it's the case that your parents could do with making the most of their free time, now they have it. You may hear them talk of the things they've always wanted to do, like visit your relatives who've moved abroad, or upgrade their tired kitchen or bathroom. Or maybe it's that conservatory they always said they'd promise themselves? Wouldn't it be nice to have that space for when the family visits?
Is cash holding them back?
Whatever it is, you can bet that cash is the thing that's holding them back. Their pensions perhaps are not quite leaving enough after the bills have been paid, or maybe the savings they'd banked on using just aren't meeting their needs, now that the cost of living has risen so sharply.
There is a way, however, for your parents to start living live a more fulfilled retirement. If they own their property, they could release some of its value via aninterest only lifetime mortgage. This is a form ofequity release, and one that pays off the interest each month so all that's left owing at the end of the term is the capital borrowed. And providing there is a SHIP guarantee on the plan selected, they'll never owe more than the property is worth.
If your parents have enough income to meet the monthly repayments and can prove it, then all well and good. However, if not, it may be something you may consider paying to help them better enjoy their retirement.
Aninterest only lifetime mortgagecan be a good solution for those who can afford monthly repayments but do not qualify for traditional mortgage lending on account of their age.
The Scottish Widows Flexible Lifetime Mortgage and the Halifax Retirement Home Plan are bothinterest only lifetime mortgages and form part of the range of equity release plans recommended by Bower Retirement Services once a full financial assessment has been carried out.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
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