Equity Release

What is Equity Release?

Equity release is a financial solution exclusively for homeowners aged 55 and over, allowing you to access the wealth tied up in your property without the need to sell or move out. It provides you with the freedom to enjoy your retirement without financial stress.

Types of Equity Release Schemes

There are two primary equity release options:

Lifetime Mortgages:
The most popular form of equity release, a lifetime mortgage, involves taking out a loan secured against your home while retaining ownership. You can choose to make repayments or let the interest roll up, with the loan and any interest being repaid when your home is sold, typically when you pass away or move into long-term care.

Home Reversion Plans:
This less common option involves selling a portion or all of your home to a home reversion provider in exchange for a lump sum or regular payments. You have the right to continue living in the property rent-free until you pass away or move into long-term care, after that the property is sold.

Benefits of Equity Release

- Access to Cash: Unlock tax-free cash from your home to spend as you wish.
- Stay in Your Home: Continue living in your beloved home while accessing its value.
- Flexible Options: Choose from lump sums, regular income, or a combination of both.
- Inheritance Protection: Opt for a plan that allows you to safeguard a portion of your property's value for your loved ones.
- No Negative Equity Guarantee: Many plans come with a guarantee that you’ll never owe more than the value of your home.

Considerations

- Impact on Inheritance: Releasing equity can reduce the amount you can pass on.
- Means-Tested Benefits: It may affect your eligibility for means-tested benefits.
- Early Repayment: There might be charges if you repay the mortgage early.
- Advice: It's crucial to speak with an independent financial adviser specializing in equity release.

Is Equity Release Right for You?

Every individual's circumstances are unique. It's important to consider if equity release is the best option for your financial needs. Speaking to an expert can help you understand the process and determine the right choice for your situation.

Our Commitment to You

We are committed to providing transparent, no-pressure advice tailored to your individual needs. Our expert advisers will guide you through every step, ensuring you make an informed decision that's right for you and your family.
 

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