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Used a Lifetime Mortgage to fund grandchildren’s private education

Mr and Mrs Buxton, a retired couple in their late sixties, approached Bower Private Clients with a number of goals they wished to achieve using Equity Release.

They wanted to repay their existing conventional mortgage, fund essential home improvements, provide financial support for their grandchildren’s private education and reduce their potential Inheritance Tax liability.

By suggesting a Lifetime Mortgage with a drawdown facility, Mr and Mrs Parry were able to achieve all their goals as well as stay in their home for life. The drawdown facility also enabled them to have a pot of money available for them to call on should their situation change in the future. A tax-free safety net which is only charged for once funds are taken.

Summary

  • Home value: £1400000
  • Mortgage outstanding: £100000
  • Amount released: £250000 immediately with a further £50000 drawdown facility
  • Existing mortgage discharged
  • Essential home improvements funded
  • Grandchildren’s private education fees taken care of
  • Drawdown facility available for future peace of mind

Outcome

A repaired, improved and reinvigorated home which Mr and Mrs Buxton can stay in for the rest of their lives.

A potentially reduced Inheritance Tax liability

A market leading fixed interest rate.

A product incorporating the Equity Release Council’s comprehensive safeguards and guarantees.

The process

Provided our expert face-to-face advice.

Ascertained the suitability of Mr and Mrs Buxton for Equity Release whilst making it clear how the plan would reduce the value of their estate and could possibly affect any eligibility to state benefits.

Only proceeded when Mr and Mrs Buxton were entirely happy.

Researched the entire market to find and recommend the most suitable plan.

Recommended a Lifetime Mortgage with a drawdown facility from an Equity Release Council registered provider that delivered exactly what they needed.