Helping children and grandchildren financially
How some homeowners use property wealth to support loved ones.
A Lifetime Mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits and tax status. The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate. For example, if the interest rate was 7% a year, a £50,000 loan would double to £100,000 after 10 years assuming no repayments are made. This is an example for illustrative purposes only and personalised advice and recommendations should be sought from a qualified professional. You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline.
Many homeowners consider equity release as a way to help children or grandchildren during key life stages.
This could include assistance with:
First-time buyer deposits
Education costs
Major life events
Next steps
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Gifting using equity release should always be planned carefully.
It’s important to consider:
Clear advice ensures expectations are managed for everyone involved.