Could you do with getting your hands on some of the cash that’s tied up in your residence?
Equity Release allows you to gain access to these funds, which may help you with planning for long term care, home improvements or even just an additional form of income. There are several options to consider, speak to us today to see how you can benefit from this.
Do you know you can release equity from your property?
The number of equity release mortgages in the UK has increased substantially over the last few years. Equity Release is specialist mortgage that allows you to access funds that are tied up in your home. There are several reasons as to why this may be suitable such as the need for home improvements, paying for long term care or even providing an income.
There are two types of equity release: Lifetime Mortgages and Home Reversion.
This is not always the most suitable option for everyone, and downsizing should always be considered initially.
Lifetime Mortgages are only available to those over the age of 55. This is where you borrow money from the equity of your home, but you still retain the ownership of the property. The loan is repaid with the funds from the sale of the property, normally a this is after death or even just being placed into long-term care.
This is available for those over the age of 65. Home Reversion is where you can sell a share of your home to the mortgage provider and in return you will receive either a tax-free cash lump sum or a regular income (or sometimes even both). You stay in the property as a tenant, but you don’t have to pay any rent.
The loan is just repaid when the house is sold, normally upon death or long-term care. As the lender has bought a ‘share’ in the property, if your house has risen in value, so will the amount that you pay back to them.
Equity release refers to home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration.
For equity release and secured loans, we act as introducers only.
By Jay Thain | 03 October 2020
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