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Second Home Options - Nicholas

 

Second Home Options case study: Using a second home to help pay for a wedding

Nicholas:

  • 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. 

Key benefits:

  • Leverage second home to release cash
  • Leave primary residence mortgage free
  • Flexibility on repayment terms

Important information

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.

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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.