We provide a free monthly financial advice clinic for the customers of a local charity. Our clients had an existing ER in place, taken out in 2004. Their original lender was the Northern Rock, but was now on the books of the Phoenix Group. Mrs Client was not party to the original ER plan, and was terrified that she may have been left homeless if Mr Client had entered a long term healthcare situation or died; being that she had no method to clear the borrowings. They produced the original offer and various other pieces of paperwork. However, there was no RWL or SL to demonstrate why this had been set up in the name of Mr Client only. The customers had no idea either. We obtained a land registry search, which confirmed the property was in the sole name of Mr Client. Mrs Client was visibly upset and recalled adverts and mailshots on Equity Release, projecting the benefits and a rosy picture of what she now perceived to be a nightmare. We reassured them as best we could. However, we did explain they would need to act quickly to resolve the situation.
We then asked them to do the following: call Phoenix Group and ask them if Mrs Client would become homeless if Mr Client died or moved into long term healthcare; assuming that this was true, they would need to ask if there was a way to rectify the issue.
The next day, Mrs Client called us back and confirmed the worst. She would have to sell the property if Mr Client died or went into care, and they were closed for any new business. W immediately arranged a home visit for the following day to resolve the situation. The product is now completed and Mrs Client is safe knowing she has a roof over her head.