In the face of rising house prices, expensive childcare, and the weight of student debt, young adults today are finding it harder than ever to get ahead financially. It’s no surprise that many are turning to the Bank of Mum and Dad — or even the Bank of Grandma and Grandad — for support.
But what happens when your cash reserves aren’t enough, yet most of your wealth is tied up in your property? That’s where equity release could provide a flexible and tax-free solution, helping you unlock the value in your home to support your children or grandchildren, right when they need it most.
Equity Release: a Quick Recap
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Equity release allows homeowners aged 55 or over to access some of the value tied up in their property without having to sell or move. The most common product in the UK is the lifetime mortgage, a type of loan secured against your home. You remain the legal owner, and the money you borrow is repaid from your estate when you pass away or move into long-term care.
There are no monthly repayments required unless you choose to make them, and many plans now come with flexible options like inheritance protection, voluntary interest payments, and the ability to draw down smaller sums as and when needed.
Why Use Equity Release to Help Your Family?
Rather than leaving money behind as an inheritance, many homeowners now prefer to give with warm hands, using equity release to make a real difference in their family’s lives today.
Here’s how releasing equity from your home can support the next generation:
Help with Buying a First Home
With average deposits for first-time buyers often exceeding £50,000, getting onto the property ladder is harder than ever. Using equity release to help children buy a home is becoming increasingly common among over-55s who want to see their family succeed.
Possible Scenario: John and Patricia released £80,000 from their home in Surrey to help their son buy a flat in London. “Without our help, it would’ve taken him years to save enough,” says Patricia.
Clear Student Debt or Fund Education
For grandchildren carrying large student loans or looking to fund postgraduate study, a tax-free cash gift made possible through equity release can ease the pressure and help them build a more secure future.
Support for Young Families
Rising living costs and unaffordable childcare mean many young families struggle to make ends meet. Whether it’s helping to pay for childcare, providing a lump sum during parental leave, or funding a home extension, equity release to support family living expenses can be a lifeline.
Start a Business
Starting a business often requires capital. By using equity release to support a family business, you can invest in your children’s entrepreneurial dreams without compromising your own financial security.
Possible Scenario: Margaret, 68, used a lifetime mortgage to give her granddaughter £40,000 to launch an online retail business. “It was so rewarding to be part of her journey,” she says.
Celebrate Life’s Milestones
From weddings to milestone birthdays, equity release can help you celebrate life’s big moments with your loved ones, without touching your pension or dipping into savings.
The Key Benefits of Equity Release
Choosing the best equity release plan depends on your individual circumstances, but here are some of the core benefits many homeowners appreciate:
- Tax-free cash to use as you wish
- Stay in your home for life, with full legal ownership
- No monthly repayments required, unless you opt to pay interest voluntarily
- Flexible borrowing options: take a lump sum or smaller drawdowns over time
Protect a portion of your estate with inheritance protection features
Important Considerations
While equity release can be a great way to provide a living inheritance, it’s important to understand the potential downsides:
- It will reduce the value of your estate, which may impact what you leave behind.
- Accrued interest means the total debt can grow quickly unless payments are made.
- It may affect your entitlement to means-tested benefits.
- Some plans include early repayment charges if you decide to repay the loan early.
- You should take advice from an estate planning consultant so that you can understand any inheritance tax implications for your estate if you gift to friends or relatives.
That’s why it’s essential to get financial advice from a qualified equity release adviser. They’ll explain the pros and cons of equity release and help you choose a plan that fits your needs and priorities.
Is Equity Release Right for You?
If you’re over 55, own your home, and want to support your children or grandchildren without selling up, equity release could offer a practical solution.
Whether you’re looking to:
- Help your children buy their first home
- Support your grandchildren with university costs
- Provide a lump sum for a family emergency or a business idea
- Enjoy seeing the impact of your wealth now, not later
…equity release could help you make it happen.
Let’s Talk
Equity release isn’t the right choice for everyone, but for many families, it offers a way to turn bricks into blessings — helping the people you care about most, without compromising your retirement lifestyle.
If you’re curious about your options, we’re here to help. We’ll talk you through the numbers, the products, and the long-term impact, so you can make an informed choice that benefits you and your loved ones.
Get in touch today for expert equity release advice tailored to your family’s future
Important Information
If you are aged 55+ and have equity in your home, you may be able to release some of it in the form of a lifetime mortgage to realise the ambitions you have for later in life.
Equity release plans can provide you with a lump sum that is secured against your home. Interest is charged when you borrow money in this way, and will depend on the equity release products that you can access.
A Lifetime Mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits and tax status. The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate. For example, if the interest rate was 7% a year, a £50,000 loan would double to £100,000 after 10 years assuming no repayments are made. This is an example for illustrative purposes only and personalised advice and recommendations should be sought from a qualified professional. You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline
Equity release services are referred to a third party. Neither Liddle Perrett Ltd nor PRIMIS is responsible for the service received.
Equity Release Mortgages are Regulated by the Financial Conduct Authority.