By Kem Kemal
17 Apr 2026
Henry Dannell works with professional advisory firms such as Gerard Edelman to support their clients with structured lending solutions, ensuring credit forms part of a coordinated strategy that protects assets and supports long term succession planning.
The great generational wealth transfer is well underway in the UK, with an estimated £5.5 to £7 trillion of wealth expected to transfer between generations over the next 30 years, representing the largest intergenerational wealth transfer in the nation’s history. As a result, families are turning to lending solutions to help them meet Inheritance Tax needs without having to sell their assets or disturb their legacy and estate plans.
Common life scenarios can trigger the need for liquidity. Here are the main examples:
When planning their retirement, individuals and their families must think about how they will support their future lifestyle, meet potential care costs and be ready for any changes in personal circumstances. If their wealth is concentrated in property or long-term holdings, they look for solutions that help them fund these needs.
The need to meet gifting or inheritance tax obligations is perhaps the most common trigger. Families whose wealth is held in property, businesses, or other illiquid assets may require capital before such assets can realistically be sold or restructured.
Passing assets between generations often involves balancing control, fairness, and tax efficiency. Lending solutions can help to resolve some of the issues raised by illiquid or indivisible assets.
Businesses often need liquidity to align funding arrangements with the transfer of leadership or ownership between generations, particularly where they hold assets that cannot be easily divided.
Business exits can be lengthy. While negotiations are ongoing, valuations might change, which can delay transactions and leave families exposed, particularly if they need liquidity before or shortly after the transaction completes; or if proceeds are phased.
Lending options depend on the assets involved, the stage of life, and the wider planning objectives.
Retirement interest only mortgages allow individuals to release capital from their home while continuing to make monthly interest payments. The loan is typically repaid when the property is sold, often following a move into long term care or upon death.
Lifetime mortgages are secured against the main residence and usually do not require monthly repayments, as interest can roll up and be repaid when the property is sold. They can provide access to capital for tax related needs, care arrangements, or later life decisions, particularly where income is limited. One should keep in mind that they may reduce the value of the estate passed on to beneficiaries.
Where families hold property assets outside the main residence, they can access liquidity through lending secured against residential or investment property. This can help to equalise outcomes between beneficiaries or retain assets that families wish to pass on.
Business or corporate lending can be structured against trading assets, retained profits, or future cash flows. This can support succession, shareholder changes, or gradual exits without disrupting the underlying business.
Families with substantial investment portfolios can access liquidity through lending solutions that are structured against those portfolios. This allows them to meet short term obligations while assets remain invested.
Bridging loans can provide liquidity when it’s needed on a temporary basis. They can be used to manage timing gaps, such as those between a tax liability and a longer term refinancing or asset reorganisation.
We all know that circumstances are likely to change. The reasons can range from market conditions to regulatory updates. Sometimes family dynamics shift as well. All of that can increase tax exposure or reduce commercial flexibility. This is why we recommend speaking to your tax adviser to create a resilient strategy that allows for flexibility and caters to the need for regular adjustments
Please get in touch with Henry Darnell if you are consiering lending as part of your succession planning strategy.
Disclaimer
This article is for general information purposes only and does not constitute financial, legal, or tax advice. Individual circumstances will vary and professional advice should be sought before taking action.
Henry Dannell is authorised and regulated by the Financial Conduct Authority. Lending is subject to status and terms and conditions. Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
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