Kevin Hull: 0800 612 7362

Meet Valerie
Valerie moved out of her primary residence in May 2013 and has been living in residential care since then. Her primary residence has been rented out since April 2014 with a 12 month assured short hold tenancy (AST) agreement in place. She needs to raise some capital to pay for her care, but does not want to sell her property. Traditional lenders will not lend to Valerie, so she would have been forced to sell her property to fund her care.

Her financial advisor introduced her to Buy-to-Let mortgages for over 55-year-olds, which gives her the option to raise finance against her property to fund her care. Her property in Essex is worth £450,000 so she can raise up to £153,000.  She can raise this in one lump sum, or can borrow a small amount upfront and borrow more in instalments, by taking out further advances when required.

With a Buy-to-Let Mortgage, Valerie was able to keep hold of her income generating family home, with no affordability checks on minimum income requirement.  She can now afford to pay for her care and still pass on her family home to her children, enjoying peace of mind, as the loan does not need to be refinanced during her lifetime. She still owns an asset which produces in the region of 4% yield (£18,000 per year annually).  She and her estate may still benefit from future capital gains on the asset (subject to the impact of interest running up) but have the flexibility to sell the property and release the remaining equity in the future.

  • This case study is a worked example and are for illustrative purposes only.  Customers will need to seek their own tax advice and should not place any reliance on the figures illustrated.  We have taken care to show information is accurate but we accept no liability for any of the information we provide.  Figures and tax rates correct at as at April 2017. Past house price growth is not a reliable indicator of future growth. The value of the property may go down as well as up. Find out more about how buy to let mortgages, please call us on 0800 6127362 or visit