More than twenty years ago, a very good friend landed a main board role at one of the nation’s largest and best-known companies. The position was London-based (remember, these were the days long, long before working from home became de rigueur) which meant my pal, Nick, began commuting to London.
His weekly routine was soon established. He would leave his Bristol home on Sunday afternoon and drive to a plush, multi-starred London hotel situated in close to his office, to ensure he was behind his desk by 7.30am on Monday morning.
For five nights every week, he was mostly hotel-bound, consuming his meals at one of the establishment’s restaurants, occasionally treating himself to a beer if he was able to catch a football match in the hotel’s bar in the company of other, long-stay guests. Come Friday afternoon, he would endeavour to get away from the office relatively early, praying the west-bound M4 was comparatively clear of traffic.
After eight months of what was becoming a monotonous, post-work, existence, Nick had had enough of hotel living. Attractive at first, even a multi-starred hotel eventually loses its lustre. To counter this, Nick had formulated a plan, an alternative to hotel living, “in order that I can retain my sanity,” he told me at the time.
Nick’s plan was unusual, but as he explained to his boss, the company was spending a small fortune accommodating and feeding him, money the company could save. ‘How?’ asked his boss. Nick’s answer was immediate: by using the hotel budget it was scheduled to spend over the next six-to-eight months to help him buy a run-down house boat moored in south west London instead.
A deal was struck and so Nick’s labour of love began.
Several months later, I met Nick (now known as Captain Pugwash to most of his friends) in Bristol to discuss progress. There was still plenty to do, he said, but his motivation, to create somewhere he could stay during the week that wasn’t a depressingly soulless hotel room, remained impressively evident. Indeed, his future plans had expanded: he spoke of having his family visit at weekends and, in time, exploring the canal network further west.
Eventually, work on the houseboat was finished. It had been transformed and was now capable of accommodating four adults, with a small terrace to the stern. At the vessel’s ‘official launch’ a delighted Nick revealed his deep motive: “I just wanted to get away from that hotel. Any hotel!” he declared. Following the successful refurb and internal decoration, the boat had easily tripled in value.
Five years later, Nick left his London job for a ‘less frenetic’ role nearer to home. He was able to find a berth for his boat close to Bristol’s Arnolfini, slap-bang in the city centre. From there, he regularly enjoys taking time at the helm to tootle between Bristol and Bath, stopping en route at one of the country pubs to be found on this 13-mile stretch of the Kennet and Avon canal.
It’s an anecdote worthy of a smile, a happy conclusion to a tale of hard work and ambition.
Which brings me on to bucket lists.
Apparently, our bucket lists are getting shorter. The trend among older people in particular, (the largest cohort currently building and often picking from an existing inventory of ‘must-do’ activities) is to move away from simply ticking off major landmarks.
Frankly, it appears there are often too many people who have had the same idea of paying a flying visit to the Taj Mahal, Sydney Harbour, Niagara Falls, the Coliseum, or any one of hundreds of other ‘must-see’ destinations, have their photograph taken and move on to the next significant venue.
According to a recent travel industry report, in place of a succession of flying visits, we’re more content to experience ‘meaningful and experiential adventures’.
This perhaps explains why older, active folks are more inclined to acquire holiday homes for their own use – and that of their family, or a motor home, extremely popular with couples prepared to disappear to the Lake District one week and drive down to Devon the next.
Your correspondent’s motor home experience was hugely enjoyable: my wife and I enjoyed a week in what was an impressively appointed vehicle. We racked up hundreds of miles, but it was great fun. Our experience of spending time on a house boat is more extensive, and just as enjoyable, including as it does taking an unforgettably lazy trip along the Kennet and Avon canal.
Increasingly, bucket lists are constructed to dovetail with (and make fuller use) of assets such as a holiday home, motor home, or a houseboat. Acquiring one of these assets could, therefore, be a step towards enjoying your bucket list over a longer period of time.
Houseboats are considered one such asset: a potentially idyllic, scenery-changing alternative to traditional bricks-and-mortar properties. While times have changed since my pal Nick spent his post-work evenings refurbishing his houseboat, it’s still possible to pick up a vessel needing comprehensive attention for under £15,000. A more attractive proposition, a boat requiring significantly less work and ready to meander along Britain’s waterways, could be bought up for between £40,000-£50,000.
Fortunately, however, many older homeowners recoiling at this cost may wish to reconsider their wince-inducing reaction for they have an ace card to play. Those aged 55+, could use wealth extracted from their existing property, with which to acquire a ‘holiday home on water’.
Mark Gregory, founder and chief executive of Equity Release Supermarket, the UK’s largest independent equity release firm, notes that, from a practical perspective, “There could be a number of advantages to acquiring a houseboat for your own and family use, particularly if a conveniently located berth can be found. For a start, they’re likely to be less costly than a traditional bricks-and-mortar holiday home.”
He adds: “Whether you’re looking to acquire a motor home, houseboat or a holiday home in the UK or abroad, releasing equity from your home could be the potential solution for people effectively sat upon significant property wealth (equity), usually accumulated over several decades.”
Provided their home is worth more than £70,000, the most popular means by which older homeowners acquire a holiday property is a lifetime mortgage, a loan secured against their current home. The minimum age for a lifetime mortgage is 55 and they are available in England, Wales, Scotland and Northern Ireland. It’s worth noting that the borrowers’ existing property must remain their main residence, ie they cannot live full time in the holiday home.
There a number of additional requirements for would-be borrowers, but essentially, the process is usually as straight forward as applying for any other form of mortgage. Moreover, the equity released is tax-free; and can be spent an popular items such as a new car, home improvements, gifting to family & replacing debt, plus many more besides.
Spending five nights a week after work refurbishing a dilapidated houseboat is not everyone’s cup of tea, but for one friend of mine, the results were enormously satisfying – and long-lasting. Making use of equity release to acquire a better vessel to start with could significantly reduce the refurbishment work involved, an observation likely to appeal to those permitted to access the tax-free funds available with which to acquire a holiday home on water.
