How property wealth can help clients fund a living inheritance through a lifetime mortgage
The financial pressures facing younger generations continue to grow, from getting on the property ladder to managing rising everyday living costs. As a result, many are turning to their families for support. LV’s Wealth and Wellbeing Research Programme found that Generation Z has the highest need for financial support from others, with 14% saying they rely on help1.
At the same time, many older homeowners are looking for ways to support their families and see the difference that a living inheritance can make. This is where the concept of the ‘bank of Gran and Grandad’ has become increasingly familiar. According to Dr Eliza Filby, between 2013 and 2025 the average amount grandparents contribute to support their grandchildren almost doubled, rising from £2,455 to £4,7032.
Supporting family without losing sight of retirement needs
For some clients, the desire to help grandchildren financially can create a difficult balancing act. While they may want to provide support today, they also need to ensure they have sufficient income to maintain their own lifestyle throughout retirement.
With net property wealth representing a greater proportion of household wealth in Great Britain than private pensions (40% versus 35%)3, many individuals find themselves in the position of being "cash poor but property rich".
As a result, some clients may look beyond their savings to support family members without compromising their own long-term financial stability.
This is where advice can play an important role. Advisers can help clients consider what level of support may be affordable, how it could affect their retirement plans, and what impact it may have on areas such as inheritance, tax planning and long-term financial wellbeing.
Considering the role of housing wealth
For homeowners aged 55+, a lifetime mortgage could be one option to explore. A lifetime mortgage is a loan secured against the client's home, allowing them to access some of the wealth tied up in their property while retaining ownership.
Funds can be released as a lump sum or through a drawdown facility, helping clients provide financial support to loved ones while maintaining their own lifestyle in retirement. As with any borrowing secured against the home, it may reduce the value of their estate and the inheritance they leave behind.
Research indicates that this is becoming a more popular way to help bridge the generational wealth gap, with 17% of people using a lifetime mortgage to help friends and relatives this year4.
Chris Smyth, Equity Release Partnership Development Manager at LV=, said: “An LV= Lifetime Mortgage can help families bridge the intergenerational wealth gap with a living inheritance, whilst retaining ownership of their home. This combined with the no negative equity guarantee provides the peace of mind that customers can never owe more than the value of their property.
“Grandparents can feel reassured that they’re able to help their loved ones with the flexibility to also fund other retirement plans should they so wish, while grandchildren benefit from the financial support provided as they navigate an increasingly challenging economic environment.
“As customer needs evolve, our non-contractual benefits, LV= Doctor Services and Care Navigator, provide practical health and wellbeing support alongside their lifetime mortgage policy.
“Used appropriately and with the right advice, a lifetime mortgage can help clients support future generations while maintaining confidence in their own financial future.”
To find out more about how an LV= Lifetime Mortgage can support your clients, visit lvadviser.com/equity-release.
This article was written in partnership with LV=.
Sources
1 LV= Wealth and Wellbeing Research Programme, Edition 22, May 2026
2 https://www.linkedin.com/posts/dr-eliza-filby_grandparents-to-the-rescue-activity-7312738482240512000-3OeJ/
3 Office for National Statistics (2025), ‘Household total wealth in Great Britain: April 2020 to March 2022’.
4 LV= Reason for Loan data, June 2026
