Equity Release

Release capital from your property

An equity release plan allows homeowners over 55 to access some of the cash locked in the value of their home.  An alternative way to release the equity in your home would be to sell and downsize, however leaving the family home and neighbourhood can be an emotional upheaval.
 

With people living longer and pensions not being what they once were, for many, savings have to be stretched allot further to last throughout retirement. That's where equity release could help. Find out more...

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Equity release explained 


An equity release plan allows homeowners over 55 to access some of the cash locked in the value of their home.


The value of your home, minus any outstanding mortgage and any other loans secured against it is the equity you have in your property. This equity is often passed on as inheritance. However, an increasing number of people are tapping into some of its wealth to help boost their retirement finances.


After years of working hard to make monthly repayments , your home is likely to be your biggest asset, particularly if you have benefited from an increase in house prices over the last few decades. 


An alternative way to release the equity in your home would be to sell and downsize, however leaving the family home and neighbourhood can be an emotional upheaval. With people living longer and pensions not being what they once were, for many, savings have to be stretched allot further to last throughout retirement. That's where equity release could help. 


Are you eligible? 


10s of thousands of people are already enjoying the benefits of unlocking the cash from their home. However, it's not suitable for everyone, which is why it's important to get independent advice before you make a decision. 


You may be suitable for a lifetime mortgage if 

  • You're over 55 

  • Your homeowner with a property worth at least £70,000 

 

How would you spend your tax free cash?

If you are considering releasing attached tax free cash lump sum then you probably got an idea in mind of how you would spend it. 


Some of the most popular reasons for releasing cash include
•    Making home and garden improvements
•    Gifting money to family
•    Going on holiday 
•    Replacing the car
•    Paying off an existing mortgage
•    Clearing credit cards and loans

 

You should always think carefully before securing a loan against your property.

There is a wide range of equity release plans to fit around your needs


Equity release has evolved in recent years. It has become increasingly flexible with a wide choice of plans tailored to fit your requirements. There are two types of lifetime mortgage. 


Lump sum lifetime mortgage 


A lifetime mortgage is a form of equity release plan where a loan is secured against your property to provide you with a tax free cash lump sum, with typically no monthly repayment to meet. 


Compound interest is added to the lifetime mortgage until the plan comes to an end. Plus interest is eventually paid back when the home is sold, usually when you move into long term care, or when you and your partner die. You can typically release between 5 and 56.5% of the value of your property with a lifetime mortgage, depending on your age, health and lifestyle. 

Drawdown lifetime mortgage 


Drawdown lifetime mortgages work in the same way as a lump sum lifetime mortgage but with added flexibility. 


Once you know the maximum amount of money you can release , after an initial release amount, you can then choose to drawdown the cash in stages as and when you want to. The interest is only added on the amount released so it adds up more slowly than it would if you release the full amount at the outset. Drawdown plans are a flexible option and can form an essential part of planning for your future finances. 


How much can I release?


The amount you can release depends on your age, how much your house is worth and your health and lifestyle. Generally, the older you are, the more you can release. Some providers take your health and lifestyle choices into consideration which could enable you to release more money. 

Facts about unlocking cash from your home .
  • Receive a tax free cash lump sum 

  • With a lifetime mortgage you still own your own home 

  • You can stay in your home for as long as you choose for the remainder of your life 

  • Typically no monthly repayments to make unless you want to

  • You will never owe more than the value of your home party release council approved plans 

  • Spend your tax free cash in a wide variety of ways

  • You can move house with equity release council approved plans subject to criteria 

  • Option to guarantee an inheritance for your family with some plans 

  • It will reduce the value of your estate and may affect your entitlement to means tested benefits 

Equity release is regulated by the Financial Conduct Authority providing protection and security. The equity release experts recommend plans approved by the equity release council these come with the following guarantees.

  • You have the right to remain in your home for as long as you choose 

  • You have the freedom to move to another property without financial penalty subject to provider criteria 

  • You will never owe more than the value of your home due to their no negative equity guarantee 

  • An equity release adviser will ensure you have considered all the intended alternatives 

  • These may include 

  • Downsizing your house 

  • Assistance from family 

  • Using any savings you have to fund your plans 

  • Other forms of borrowing 

 

And remember if equity release is not right for you they will tell you. 
 

or alternatively, call us now on 01803 303909 to speak to an advisor.

 

Your property may be repossessed if you do not keep up repayments on your mortgage.

Some buy to let mortgages are not regulated by the Financial Conduct Authority.