Accessing the money in your property:Equity Release
You want to be able to use some of the money tied up in your property. You also want advice on the best way of achieving this to safeguard your home and your beneficiaries.
Are you over 55 and need to access some of the equity in your property tax free?
You can typically release up to 60% of the equity, depending on your age and the value of your property. The equity that you release can be used exactly as you please. Let us guide you through the options available and determine if Equity Release is the right thing for your personal circumstances.
What is Equity Release?
Equity release (ER) is a term that applies to many forms of mortgage based schemes and is essentially a means of accessing the wealth you’ve created in your home.
For those over 55, ER plans allow you to release some equity (tax-free cash) in the form of a capital lump sum, or a series of payments, or a combination of the two. Payments can be taken as often as you need, up to an agreed limit determined by your age and the value of your home at the time of application. How you spend the money is entirely up to you, there are no restrictions.
There are two types of ER schemes:
Lifetime mortgages are secured on your property – either your main residence, second home, or even a holiday home. The property remains 100% in your own name. A lifetime mortgage is designed to be repaid upon your death or when you have to move into full time care outside your own home. When the outstanding balance is paid off, the remaining equity will be passed on exactly in line with your wishes.
You can choose to: –
- Make repayments, either on an ad-hoc or regular basis via voluntary or monthly payments to control the future balance
- Protect an element of equity using the Inheritance Protection Guarantee, which safeguards a percentage of the final property value for your beneficiaries
- Take future cash withdrawals, following the creation of a cash reserve facility
Home reversion plans allow you to sell a percentage of the value of your property in return for a cash lump sum, or series of lump sums. The home reversion provider gives you a lifetime tenancy so that you can live, rent free, in your own home for the rest of your life.
Which scheme is best?
This will depend on your personal circumstances. As independent equity release advisers, we will meet with you and gain a solid understanding of your financial situation now, how much equity you’d like to release and what your future plans are. We will then go to the market to find the most appropriate offer, creating the best solution for you.
What happens next?
Our team will work at your pace, keeping you informed throughout the application to completion process. You are making the decision and you can complete, or not, when you want and need to. We are guiding you, but we pride ourselves on leaving you and your family in control.
Lifetime mortgage schemes and home reversion plans are complex mortgage solutions. To help you fully understand the risks you are taking, just ask us for the reassurance a professionally provided, personalised Key Facts Illustration, can bring.