Second Home Options case study: Using a second home to help pay for a wedding
- 57 years old
- Owns two properties
- Needs lump sum for daughter’s wedding
Nicholas owns two properties. One has been his family home for the past 28 years and has huge sentimental significance. The second is a holiday cottage in Wales which his family enjoys spending time at throughout the year.
Nicholas’ daughter is getting married next year and he would like to be able to help her with the wedding costs. He has spoken to a financial adviser who has recommended a lifetime mortgage on his second home. This would allow him to withdraw a lump sum secured against his second home rather than his primary residence, which offers him peace of mind.
By taking out a second home lifetime mortgage Nicholas releases £15,000 which he is able to put towards his daughter’s wedding.
Nicholas could either choose to make regular voluntary repayments to service the capital and the interest, or let the interest roll up. He chose to make voluntary repayments, so that he can potentially eliminate the impact of the interest rolling up and pay off the mortgage over 9 years, without incurring early repayment charges.
- Leverage second home to release cash
- Leave primary residence mortgage free
- Flexibility on repayment terms
These case studies are worked examples and are for illustrative purposes only. Your customers will need to seek their own tax advice and you or your customers should not place any reliance on the figures illustrated in this case study.
Canada Life is not responsible for the suitability of any of the statements made in the case study, or for any financial advice you receive.
You can find out more about our Second Home Options here.