Bob and Margaret: Long term estate planning with short term lending
Who did we help?
Bob and Margaret, aged 73 and 70, are the founders of a successful family business in Lancashire. After years of running the company and building a strong financial profile, they wanted to help the next generation of the family through the creation of a new multi-generational living arrangement. This would see them purchase a larger family home for their daughter and son-in-law that would include self-contained annex accommodation for them.
Bob & Margaret are wanting to help their next generation create a multi-generational living arrangement
What did they need?
The couple owned a large cottage in Blackburn, which had been valued at £825,000, with no mortgage outstanding. They wanted to use the value of the property to raise 75% loan-to-value on a short-term basis which would be used as a gift towards the deposit for the family’s new home, which would be purchased solely in their daughter and son-in-law’s names.
They wanted to use the value of the property to raise 75% loan-to-value on a short-term basis which would be used as a gift towards the deposit for the family’s new home
Why were they facing challenges?
Bob and Margaret would be borrowing against a property they intended to sell, while not purchasing a replacement property themselves. Instead, they planned to move into their family's new home. Although their long-established business generated more than enough income to support the borrowing, the overall transaction had the characteristics of estate planning and inter-family wealth transfer, making it a much more complex case than a standard residential mortgage.
How did we help?
We were able to take a holistic view of the family's circumstances and objectives thanks to our manual underwriting approach. Our BDM and underwriting team recognised the strength of the applicants’ income and wider family strategy and felt comfortable supporting the lending request, subject to tailored conditions. These included independent legal advice for the applicants and the simultaneous completions of the short term loan and purchase of the new property. This enabled the family to move forward with their long-term plans, while ensuring appropriate safeguards were in place for everyone involved.
Could our short term lending solutions coupled with human-led underwriting help one of your clients? Contact our Furness Intermediaries team on 0800 988 1561 or speak to one of our Business Development Managers.