A wishes to make a Will dividing her estate between four children, one of whom (B) is on means tested benefits. We have discussed the use of life interest and discretionary trusts.
What A would like to do, is use the trust monies for B to purchase a property. There will be about £100k so insufficient funds to do so. STEP provisions are included in the Will so there is a power for the Trustees to borrow (should they be prepared to do so).
I have concerns that mainstream lenders may not be prepared to make a loan to trustees in this situation. Do any forum members have experience of lenders being prepared to grant trustees a mortgage in this type of scenario?
Any alternative views on how to deal?
Brewer Harding & Rowe