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Use the Value in your home to unlock a better life
What is Equity Release?
Equity release is a way to take some of the tax-free cash out of your home without having to leave your property.
It’s available to homeowners aged 55 and over, and those whose property is worth more than £70,000.
You don’t have to make any monthly repayments if you choose not to, and equity release plans have no set term. The plan is repaid usually when you, or the last remaining borrower, either passes away or goes into long-term residential care.
Why Equity Release?
Equity release has become a popular way to boost finances in later life as the tax-free cash you release can, typically, be spent in a wide variety of ways.
You may be able to free up equity from your home to use towards an endless number of benefits. Whether you require cash for a holiday, home improvements, helping family members get onto the property ladder or simply paying for their school, college or university fees, the advisers that we work with can help. It could be a simple matter of using the money to clear existing debts or to fund the things they’ve always wanted and now have the time to do. Everyones needs are different and our dedicated team are here to ensure that yours are understood and met. If that means that equity release is not right for you then our advisors will be sure to let you know.
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Contact us now to be introduced to a sympathetic and knowledgeable adviser, who will provide a free no-obligation initial appointment to discuss your needs and objectives.
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How does Equity Release work?
There are two types of equity release - lifetime mortgages and home reversion.
A lifetime mortgage is the most popular type of equity release. Similar to a standard mortgage, a Lifetime Mortgage is a loan secured against your home. It allows homeowners aged 55 and over to access some of the cash locked in the value of their property, while still retaining full ownership. The main difference is that with a standard mortgage you make regular payments in order to repay the mortgage in full over a set period of time, whereas with a lifetime mortgage you can have a large sum of money and are not required to make any monthly payments out of your retirement income. Instead, the interest is added to the loan and is repaid at the end, which as the name suggests, is at the end of your lifetime.
There’s usually a fixed rate of interest on these loans, though variable rates are available. There are typically no monthly repayments, unless you choose a plan where you can pay some, or all, of the interest each month.
We will introduce you to an independent adviser, who can recommend a plan to suit your circumstances. That could be taking the money in one lump sum or in smaller amounts after an initial withdrawal, protecting your inheritance, or making ad hoc capital repayments to reduce the overall cost of your plan.
A lifetime A home reversion plan is the other type of equity release. Providers of home reversion plans will purchase all or part of your property in return for a tax-free cash lump sum. They will own the property but in return, you are granted a lifetime lease which gives you the security to live in your home rent free until you pass away or move into long-term care (or if you are a couple, until the survivor passes away or goes into long-term care). You will receive less than the market value of your home and the amount you will receive will depend on your age, property value and the proportion you sell. You can live in your home rent free for as long as you choose - however you will no longer be the legal owner.
There are no monthly repayments to make and no interest to pay. When your home is sold at the end of the plan, the provider will take their share of the proceeds; the remainder is left to your estate, providing you did not sell 100% of your property.
With a home reversion plan, you need to be at least 65 or over to apply and you’ll receive your money in one lump sum.
We will introduce you to a specialist adviser to help you find out which type of plan suits you best.
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The best way to find out which plan is best for your needs is by speaking to an adviser. Contact us to be introduced to an expert advisor for a free no obligation appointment to discuss the types of equity release plans.
How much does it cost?
There may be some initial charges when you set up your plan. If you decide to go ahead with equity release, you will also be charged an advice fee and have solictors' fees to pay. All of the advisers that we introduce you to will always offer an initail consultation free of charge and operate a no completion, no fee guarantee!
Any charges will be explained in more detail before you decide to proceed.
Is Equity Release safe?
Equity release is regulated by the Financial Conduct Authority (FCA). This is the UK’s financial regulatory body whose aim is to ensure protection for consumers, enhance market integrity and promote effective competition.
In addition, the Equity Release Council (ERC), an industry body for the UK equity release sector, provides extra safeguards.
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A no negative equity guarantee – you can never owe more than the value of your property
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The right to remain in your property for life or until you move into long-term care
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The right to move home (subject to provider criteria)
All members of the ERC must adhere to the Council’s Statement of Principles, designed to promote high standards of conduct and practice.
How Much can I release?
How much you can release depends on several things: Your age, health and lifestyle, and your property’s value.
To get an example of the amout you could release try using our free equity release calculator.
Although you can take out equity release if you still have a mortgage or any outstanding secured loans on the property, you must repay them, and the cash you release can be used to do this, any money left over belongs to you.
What's Next?
Any advisor that we introduce you to, will help you understand equity release and find out whether it is right for you.
Give us a call so we can discuss your needs over the phone and explain more about equity release. Our panel of advisors will always tell you if equity release isn’t right for you and there’s absolutely no obligation to go ahead.
Equity release isn’t for everyone, and our advisors will never say it’s the right option for you unless they are certain.