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Prestige Options - Yvonne and Richard

 

Gifting to family 

Yvonne and Richard

  • Both in their early 70s
  • Own £6 million property mortgage free
  • Limited savings and other assets
  • Want to gift cash to family

Yvonne and Richard have a £6 million property in Oxford which they own mortgage free. This property is their only asset and they don’t hold considerable savings, but both have reasonable pension pots from which they plan to fund their retirement.

They have two children and five grandchildren and would like to make gifts to them, so that they can see their family enjoy their inheritance.

The couple are aware that they will not be able to borrow from a traditional mortgage lender, but would still like to use their property to generate some cash, so have decided upon a lifetime mortgage.

Their primary concern is not to eat away at their income by having to commit to regular monthly repayments, so their financial adviser has suggested a product where the interest rolls up each month and is added to the mortgage.

Because they have a high value property, their financial adviser suggests that they take out a Prestige lifetime mortgage. Through this product, Yvonne and Richard are able to borrow £2 million and split this between their two children. They enjoy the benefits of being able to stay in their home, without being subject to monthly payments. They’re also able to see their family enjoy their inheritance that they would otherwise have had to wait many years to receive.

Key benefits:

  • Able to release a high value cash lump sum
  • Inheritance can be gifted early
  • No monthly payments, interest rolls up

Important information

This case study is a worked example and is for illustrative purposes only. We have taken care to ensure the information is accurate, but we accept no liability for any of the information we provide that you decide to use or for the suitability of any of the statements made. Individual financial advice and tax advice should be sought prior to taking out a lifetime mortgage, as releasing equity can change the inheritance tax position of the borrower and their estate, as well as potentially altering their eligibility for welfare benefits.

Find our more about our Prestige Options.

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Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

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Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.