equity release
As we start to get older, our focus changes to how we might manage financially. You may wish to supplement your retirement with some extra cash, or perhaps adapt your existing home to continue living independently.
When we reach the later stages in our life, remortgaging becomes less of an option due to the length of term. You can get more out of your later life with equity release. Speak to one of our expert advisors today to find out how you can release built up equity in your property.
If you are aged 55 or over and are worried about committing to another bigger or longer mortgage, Equity Release might be the alternative for you. Equity Release is a way of unlocking some of the cash tied up in your home, either as a lump sum, in several smaller amounts or as a combination of both.
Equity Release is essentially a long-term loan that is only repaid using your home once you pass away or require long-term care. Until then, you’ll remain a homeowner with no need to move out.
For many of us, financial freedom means different things, but the importance of it remains high. Whether it’s home renovations, paying off an interest-only mortgage or helping out your children, equity release is designed to make it happen.
The first type of Equity Release is called a lifetime
mortgage. This allows you to take out a mortgage
secured against your home for a proportion of your
home's value, whilst still retaining ownership. You
won’t normally have to make any monthly payments,
instead interest builds up on the loan each year. The
amount you borrow including the compounded
interest is paid back through the sale of your home,
normally when you die or move into long-term care.
The other type is called home reversion. This allows you to sell all or part of your home to the Equity Release partner in return for a lump sump or regular payments. You can retain a percentage of ownership and still live in the property, rent-free until you die. At the end of the plan, your property will be sold, and the proceeds split according to the proportions of ownership. For example, if you sold 50% of your property to the equity release provider, they would get 50% of the sale price.
is equity release right for me?
If you’re looking to free tied-up cash quickly without moving home, then Equity Release could be the right solution for you. It is important to remember however, that Equity Release can be more expensive than remortgaging. You may, on the other hand, be able to unlock more equity from your home because a re-mortgage is based on what you can repay. Your retirement income may not be enough to support the new repayments and as such, Equity Release would be better for you to supplement your retirement pot.
However, Equity Release could affect any benefits you might be entitled to or are currently claiming and may also have an impact on the amount of inheritance you are planning to leave to your children or family. You may also not be able to rely on your home for more income later in your life if you release equity now, for example if you suffer from ill health or need to pay for long-term care.
If you’re aged 55 or over and are interested in learning more about your options in releasing tax-free cash from your property, get in touch with one of our friendly expert advisors who will happily walk you through what is available to you.
what is equity release?
what are the different types?
Looking to increase your income?
Are you considering some home improvements? Or perhaps you require your existing home to be adapted for accessibility? Maybe you have decided to explore new parts of the world and experience those sights you always promised yourself.
No matter what your reason, financial freedom later in life plays an important role in achieving your goals. Depending on your circumstances, Equity Release could be the perfect choice for you.
Why not book a consultation with one of our friendly expert advisors who will talk you through all of your available options.
Although we do not charge for the consultation, we charge a fee, which is payable as follows:- £500 on completion of the mortgage. We will receive commission from the lender in addition to the fees you pay.
A LIFETIME MORTGAGE IS A LONG TERM COMMITMENT WHICH COULD ACCUMULATE INTEREST AND IS SECURED AGAINST YOUR HOME. EQUITY RELEASE IS NOT RIGHT FOR EVERYONE AND MAY REDUCE THE VALUE OF YOUR ESTATE.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP MORTGAGE REPAYMENTS.