These days, many are releasing equity for pro-active reasons to ensure they have adequate accessible funds for their retirement years, and to see the joy on the faces of their family (and perhaps friends) when they gift money to them to meet a multitude of needs.

This pro-active stance to have money now, for personal needs, and to gift funds to family (and perhaps friends), may also deliver an additional tax-planning option for High-Net-Worth homeowners.

In the example below, the Inheritance Tax bill (that needs to be paid quite swiftly), could be reduced markedly if a Lifetime Mortgage is taken out, as that sits as a debt against the estate. 

In the meantime, using the loan funds wisely (such as helping grandchildren to buy their first home) may deliver its own financial returns over time.

The example scenario is simply that, and a rough assumption has been made regarding a 2.5% annual growth in the value of both the property and assets. 

The fixed interest rate charged for a Lifetime Mortgage would be something that can be gauged once an initial client meeting has occurred.

HM Revenue & Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Please contact me to hear more…