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Used a Lifetime Mortgage to Invest in the family business

Mr Hartley, 83, wished to release further equity from his property to purchase stock in his family business. Mr Hartley needed to clear his existing Lifetime Mortgage for £1200000 from his new facility of £1747000 which then allowed him to invest in the family art gallery with the remaining £547000.

Not only did the tax-free cash released give Mr Hartley a further opportunity to become more involved in the family business, by reducing the value of his estate he could also potentially diminish the future impact of Inheritance Tax.

Summary

  • Home value: £3500000
  • Lifetime Mortgage outstanding: £1200000
  • Amount released: £1747000
  • Existing Lifetime Mortgage discharged
  • £547000 remaining to invest in the business

Outcome

A closer involvement with a treasured family business.

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 Hartley for Equity Release whilst making it clear how the plan would reduce the value of his estate and could possibly affect any eligibility to state benefits.

Only proceeded when Mr Hartley was entirely happy.

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

Recommended a Lifetime Mortgage from an Equity Release Council registered provider that delivered exactly what he needed.