EQUITY RELEASE

The decision to release equity from your property to fund additional retirement income or perhaps a lump sum for holidays or refurbishment of your property is not one that should be taken lightly. It has probably taken you many years to pay off the mortgage in the first place, yet  the additional disposable funds that you can obtain through equity release allow you to enjoy a more comfortable retirement. It will also give you the chance to live out many of the dream holidays and experiences that you longed to fulfil whilst you were working or raising your family, whilst you are still physically able to fulfil them. 

We can give you all of the options available in reaching a decision as to whether it is right for you. Through the substantial increases in house prices over the last decade, many people in retirement are asset rich and income poor and the release of equity can be very advantageous in the right circumstances. For many people with a high value property, equity release can also be a means of reducing the amount of inheritance tax that is paid.

Types of Equity Release Plans 

Lifetime Mortgage - allows you to release a lump sum from the value of the property, with the amount released plus any interest accrued repaid out of your estate when you pass away or move into long-term care.

Drawdown Lifetime Mortgage - similar to a lifetime mortgage, but with additional flexibility, as the cash can be released over time, as and when required, which can reduce the amount of interest accrued.

Home Reversion Plan - you surrender some or all of the ownership of your property in exchange for a lump sum of money and the right to remain living in the house, rent free, for as long as you live. Normally a small annual sum is payable to the home reversion company.