Equity Release

Would you like to achieve your retirement aspirations? Many people find themselves asset rich and cash poor, and house prices have increased rapidly over the past decade.

Equity release allows homeowners over the age of 55 to free up money from their properties. The equity in your property is the market value of your home, less any mortgage or other finance or loans secured against it. Equity release allows homeowners to unlock this value and release it as a tax-free sum of money or regular smaller amounts, using a drawdown facility.

The number of equity release products is higher than ever, with a rapid expansion of plans on the market, giving property owners greater flexibility in releasing equity.

Unlike a traditional mortgage, with equity release, you do not have to make monthly payments unless you choose to do so. The loan’s value, plus any accumulated interest, is paid off when the last borrower moves into long-term care or dies.

You must seek independent equity release advice if you are considering whether equity release is the right choice for you. Advice will be given allowing you to make this critical decision.

If you think that releasing equity is an attractive option, we can search across the whole of the market to find the right product for you.

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Why do people choose to release equity?

There are many reasons people choose to release equity, and equity can be used for whatever you wish. Typical reasons to decide to release equity include:

To pay off existing debts or a residential mortgage
To fund home improvements or adapt your home so you can continue living there
To add to your retirement income for day-to-day living costs
To help children or grandchildren with a ‘living inheritance’ – usually used for housing costs to pay for a wedding or education
To go on holiday or travel more
To fund care at home or private medical bills

What are the different types of equity release?

There are two main types of equity release mortgages: Home Reversion Plans and Lifetime Mortgages. The Financial Conduct Authority regulates both these types of plans. The vast majority of the market now centres on Lifetime Mortgages. These products have evolved over the years and now offer a safe and versatile way to access money tied up in your home.

There are hundreds of equity release products available on the market, and our trusted adviser can research them all to find the right one for you.

Equity release is not always the right option for everyone; we will discuss the implications for any inheritance, your eligibility for means-tested benefits, and your tax position.

Lifetime Mortgages

Lifetime Mortgages allow you to take out a mortgage against the property’s value whilst maintaining full ownership of your home. You can either let the interest roll-up or pay some or all of the interest to reduce the value of the loan. When you die or move into long-term care, the money from the sale of the property is used to pay back the loan.

Home Reversion Schemes

With Home Reversion Schemes, you sell either part or all of your property to the provider in order to receive a lump sum or smaller payments. This passes some or all of the ownership to the provider, but you can continue living in your home rent-free until you move out or pass away.