One in 12 grandparents (8%) in the UK have used the value locked in their homes to provide financial support for their grandchildren, new research from Legal & General Home Finance (LGHF) has indicated.

This comes as four in every five grandparents (79%) are providing financial support for their grandchildren.

A survey of 2,000 grandparents in the UK found that younger grandparents, aged between 50 and 64, are twice as likely to use property wealth to gift to grandchildren (10%) compared to 65 to 74 year-olds (5%).

LGHF said this indicates the next generation of grandparents are becoming more likely to consider the value of their homes as part of their financial planning.

CEO at LGHF, Craig Brown, commented: “While grandparents have a wealth of life experience to pass on, they are also choosing to provide financial support to younger generations.

“With house prices remaining high, many homeowners will look to the value tied up in their property as a way to pass on a living inheritance to their grandchildren. This might be in the form of a large gift, such as a contribution to a deposit on a first home, or as regular financial support to meet rising living costs.”

LGHF’s findings also suggested that grandparents look to provide financial support for a range of reasons, for example, helping in times of a crisis (13%).

The research also indicated they are contributing to their grandchildren’s one-off big-ticket expenses such as holidays (17%) or a wedding (5%), while also looking to support younger family members with their homes, either to get onto the property ladder or provide support for rent (5%).

“For some, a lifetime mortgage will provide a practical solution to accessing the wealth found in their home but we also know that, where financial support isn’t possible, extended family are often providing help in other ways, such as unpaid childcare or allowing adult children to move in to help them save for a home of their own,” Brown added.

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