What is Equity Release?
Equity release provides you with an opportunity to release tax free cash from your home and you can remain in your property for the rest of your life. You may choose to release equity for any number of reasons, including:
- Increasing your retirement income
- Pay off mortgage or other debts
- Help support children/ family members (for example care costs for parents)
- To pay for holidays or purchase a holiday home.
- Home improvements.
Do I qualify?
To qualify you need to be over the age of 55, live in mainland UK and own a property. It doesn’t matter if you have an existing mortgage as long as there is sufficient equity left in the property.
How do I release capital?
There are 2 types of equity release plans Lifetime Mortgages and Home Reversion.
Lifetime Mortgages
A lifetime mortgage enables you to borrow a sum of money secured against your home whilst retaining full ownership of the property. Depending on your requirements this can be taken as a lump sum or regular payments when required. The interest rolls up and when you pass away or move out of your home the property is sold and the sale proceeds are used to pay off the initial loan and accumulated interest with the balance of equity belonging to the estate.
Home Reversion
A reversion plan enables you to sell part or all of your home to a reversion provider for a fixed tax free lump sum, regular income or a combination. You are granted a guaranteed lifetime lease so that you can continue living in the property for the rest of your life or if you are a couple then your lives. The amount of equity released will depend upon your age, gender and the estimated value of your property.
If you would like to discuss equity release in more detail, require further information or have any questions then we would be delighted to hear from you