Over 55 Buy-to-Let Voluntary Select

About Derek and Alison

Derek and Alison are both in their early 70s and have owned their buy-to-let property for over 20 years, having fully paid off the mortgage. The property price has increased a lot in that time, from £120,000 to £550,000.

They want to help their grandchildren get on the property ladder, but don’t want to sell their buy-to-let property and would like to continue receiving rental income.

Concerned about not being able to use traditional lenders due to their age, they speak with their financial adviser to see what’s possible.

…we wanted to use the equity tied up in our properties to help her get a foot on the property ladder

Supporting the next generation

Their financial adviser confirms that traditional lenders won’t lend to Derek and Alison because of their age. He recommends our Over 55 Buy-to-Let Voluntary Select mortgage instead.

Using a buy-to-let mortgage, Derek and Alison release £182,000 from their buy-to-let property and gift £91,000 to each of their grandchildren. This also allows them to retain their property, meaning they continue to receive their rental income and benefit from any future increases in house value.

Derek and Alison can choose to make capital and interest repayments of up to 10% of the initial loan amount each year without paying an early repayment charge. This means they can lower their oustanding mortgage balance and therefore reduce the impact on the inheritance they will leave behind. 

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 buy-to-let 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.