Unlock Money from your home with Equity Release

Equity release refers to a range of products letting you access the equity (cash) tied up in your home if you are over the age of 55. You can take the money you release as a lump sum or, in several smaller amounts or as a combination of both.

 

What Equity Release Plans are Available?

Lifetime Mortgage

A lifetime mortgage allows you to release a lump sum of cash from the value of your property. There is no requirement to make regular monthly repayments as the amount that you have released, plus any interest, is repaid from the money made when the property is sold. Generally this is when you die, or move into  longterm care.

Drawdown Lifetime Mortgage

This is similar to the standard lifetime mortgage. However,  with the drawdown lifetime mortgage, you can access your money with more flexibility. Rather than just receiving a lump sum, you have the option to release your cash over time, as and when you need it. Because you only pay interest on the cash that you have taken, these plans can often prove to be  more cost-effective.

Interest-only Lifetime Mortgage

This is like a standard lifetime mortgage. However, you make regular monthly repayments to reduce the effect on the value of your estate. Some plans allow you to make monthly repayments that are equal to or less than the amount of interest that is charged. The balance is paid off from the value of your estate once you have died or have moved into long-term care.

Home Reversion Plan

A home reversion is a plan only available to those aged 65 or over. This plan allows you to exchange the ownership of some or all of your property for a lump sum of cash, whilst retaining the right to stay in the property, free of charge, for as long as you live. This is also known as a ‘lifetime lease’. Because you can continue living in your home, rent-free, for life, you would generally receive an amount for your property that is lower than its market value.

Please Note:
Lifetime mortgages are secured against your home and may reduce the value of your estate and can affect your entitlement to state benefits.

An Introduction to Equity Release

If you are 55 or over and you own your own home, you could qualify for an Equity Release plan and unlock a lump sum from your property and help you enjoy the retirement you deserve.

The value of your home, minus any outstanding mortgage or any other lending secured on it, can be described as your ‘equity’. An Equity Release plan enables homeowners like you to unlock some of this value as tax-free cash.

Because the funds are yours in the first place – you’re simply ‘releasing’ them – the money you receive is tax-free and can be spent on anything you like.

What can equity release be used for?

  • Repay standard mortgage
  • Home Improvements
  • Supplement your income
  • Helping family
  • New car
  • Holiday of a lifetime

A ‘step-by-step’ guide to Releasing Equity.


  • Step 1: Do You Qualify?

    Do you own your own home? And is the youngest homeowner aged 55 or over? If you can answer ‘yes’ to these two questions, you are likely to be eligible for Equity Release


  • Step 2: Is Equity Release the Right Option for You?

    To find out whether equity release is your best option, you should call us for specialist independent advice. We will be happy to tell you more about the plans available.


  • Step 3:

    If you decide to go ahead, we will complete the application form with you.


  • Step 4: Receive Your Money

    Most Equity Release applications take between six to eight weeks to complete. However, we will do all we can to keep this wait to a minimum.

Important Information

The advisors will tell you everything you need to know about Equity Release including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.

Equity release may involve a home reversion plan or a lifetime mortgage which is secured against you property. To understand the features and risks ask for your personalised illustration.

You only continue to own your own home with a lifetime mortgage which is secured against your property.

Only if you choose to proceed and your case completes would a typical fee of 1.50% of the amount released be payable (minimum £995).

Equity Release requires paying off any outstanding mortgage. Equity released, plus accrued interest to be repaid upon death, or moving into long-term care.