Releasing equity from their home to gift money to children

What was the situation?

My clients, a married couple with 3 grown up children, owned a property in London valued at £3,200,000. They also owned a holiday home in Spain and had considerable assets which led to an estate value of over £4,400,000.

Following a serious illness scare some years previously, the clients wanted to release equity from their London property to enable them to make the most of their life, whilst also looking to utilise equity release as part of an inheritance planning exercise.

What was the issue?

Due to previous ill health, the clients were concerned that they may be capped on the amount they could borrow.

What was the process?

Equity release applications take into consideration an applicants age and overall health. Even if the person is critically unwell, applications will still be considered and in some cases, ill health may increase the amount of money you can borrow.

By explaining this to the borrowers, I was able to overcome their concerns and progress with the application.

Once the loan amount was agreed, I worked closely with the clients lawyers, inheritance tax planners and wealth advisers to provide a suitable solution.

What was the solution?

I arranged a lifetime equity release mortgage for £730,000, of which £460,000 was to be “gifted” to their children as part of an inheritance tax planning exercise. The remaining loan was provided to pay for repairs to the properties in the UK and in Spain, and short term travel plans for the clients to enjoy their golden years.

Are you exploring the option of gifting money to your children by releasing equity? At LDN Finance we’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.