Ever wanted to help a loved one, but not had the money available to give as much as you’d like to?
An Aviva Property Plan is a lifetime mortgage and refers to Aviva's Lifestyle Lump Sum Max and Lifestyle Flexible Option products. Below we've put together a typical scenario to show how an Aviva Property Plan could help you.
Chris and Alice are business owners in their mid-60s, based down in Bournemouth. Their kids have grown up and left the nest, and are facing some expensive years ahead – their son wants to put down a deposit on a flat, while their daughter is expecting her first child.
It’s not like Chris and Alice are struggling for money. They’ve paid off their mortgage, and have good private pensions – plus some savings – but they’re tied up in investments and they’ve been advised to leave them in place.
But there is another way to help. Chris and Alice are aged over 55 and own a home worth £500,000, and if they unlocked some of the value of their home, they’d have enough money to help both their children with the next big step.
By choosing an Aviva Property Plan, Chris and Alice could give their son £40,000. This could let him access more lenders, products and a much lower interest rate. He would no longer struggle to pay his deposit.
Their Aviva Property Plan could also mean they could give their daughter £20,000 to buy a bigger car, and make her home babyproof. They could then set up a further £20,000 as a reserve fund, to help raise their grandchild through the years – maybe even paying for university down the line.
Could you help your children too?
Finding new ways to help out the new generation is becoming a bigger concern for middle-aged family members over the last few years. Our 2016 research* shows that:
54% of homeowners over the age of 45 say they’d rather help family members onto the property ladders now, than through inheritance later.
43% believe their grandchildren will never own their own homes without family help.
So, how could an Aviva Property Plan help your family? Take a look .
This is a fictitious example for illustrative purposes only. An Aviva Property Plan is a lifetime mortgage which can’t be taken out without financial advice so we’ll put you through to a carefully selected, specialist adviser who isn’t employed by us but can only advise on our lifetime mortgages. If you require general financial planning and investment advice please speak to your own financial adviser. If don't have an adviser, but want to speak to one, you can find one near you at www.unbiased.co.uk. Taking out a lifetime mortgage will reduce the amount of inheritance you are able to leave. Your tax position and eligibility for welfare benefits may also be affected.
Call us on 0800 141 3508 to check if you’re eligible for a lifetime mortgage and to be put through to a specialist financial adviser who is qualified in providing advice on lifetime mortgages.
*All data drawn from the Aviva Real Retirement Report 2016.