Equity Release

Why not enjoy life

Over the years, rising house prices have allowed many people to build up substantial equity in their home, yet low interest rates on savings, coupled with rising living costs, mean many people struggle to maintain the lifestyle they would like. More and more people are considering using their homes as part of their retirement finances, and equity release gives people the freedom to do this without having to downsize to a smaller property. A lifetime mortgage allows you to release tax-free money from your home to enjoy in your retirement years. It is entirely up to you what you spend your money on and it will allow you to enjoy your retirement to the full.

Equity release refers to Home reversion plans and lifetime mortgage. To understand the features and risks, ask for a personalised illustration

Lifetime mortgages are complex products. To understand the features and risks, ask for a personalised illustration.

Lifetime mortgages can significantly erode the remaining equity and as a result there may be no value left to pass on.

Equity Release schemes may work out more expensive than alternatives such as downsizing to a smaller property and can, in some cases, affect eligibility to state benefits and grants.

Equity Release Details

Lifetime Mortgages

This is the most popular type of equity release scheme.

It is a loan, secured against the value of your home & exchanged for a tax free lump sum or income. The lifetime mortgage charges interest at a fixed rate. With some schemes this is not repaid monthly, but added to the mortgage. The balance, including compound interest is finally repaid in full when the property is sold. This is on death or the last person moving into long term care

Drawdown Plans

A flexible approach to the release of home equity. These plans offer control over how & when you wish to take your tax free cash.

From the outset, you will be provided with a maximum cash reserve facility. Out of this, you decide how much you initially wish to withdraw, with the remaining cash held in reserve until a future date. This will be determined by whenever it is that you wish to take any additional funds.

Home Reversion plans

This involves selling part, or all of the value in your property for cash.

This involves selling part, or all of the value in your property for cash. This tax free cash is available as a lump sum, income or a combination of both. In return, the reversion company provides a lifetime tenancy agreement for the part they own. Any amount up to 100% of the property can be sold.

Equity Release refers to Home Reversion Plans and Lifetime mortgages.  To understand the features and risks, ask for a personalised illustration.  Lifetime mortgages can significantly erode the remaining equity and as a result there may be no value left to pass on.  Equity Release schemes may work out more expensive than alternatives such as downsizing to a smaller property and can, in some cases, affect eligibility to state benefits and grants.

For Equity Release we usually charge a fee of £499 and receive a commission from the lender.