All lenders stated that they required the charge to be cleared. An additional £100,000 would have needed to be raised meaning that the gifted equity would become interest bearing.
Sentry Lifetime managed to work with a lender and obtain the funds for the clients by arranging for a change of priority for the current charge. The lifetime mortgage charge was therefore number one and the gifted equity now as a second charge. This also meant that the clients would continue to pay no interest on the gifted equity.
The clients received a lump sum upfront, followed by an additional reserve of funds that can be drawn down when needed whereby the interest is only charged on funds that have been drawn down.