Equity release is a financial solution that allows homeowners aged 55 and over to unlock the value tied up in their property.
There are two main types of equity release: lifetime mortgages and home reversion plans. With a lifetime mortgage, you can borrow a portion of your home’s value, with interest accruing over time, typically repaid when the last homeowner moves into long-term care or passes away. Home reversion plans involve selling a share of your property in exchange for a lump sum or regular payments, while retaining the right to live in your home rent-free for the rest of your life.
Equity release can offer several advantages:
- Financial Flexibility: Access funds when you need them, for any purpose you choose.
- No Monthly Repayments: With most equity release plans, there are no required monthly repayments. The loan is repaid when the property is sold.
- Retain Home Ownership: Continue living in your home and retain full ownership with a lifetime mortgage, or share ownership with a home reversion plan.
- Tax-Free Cash: The money you release from your home is tax-free.
However, it’s crucial to consider the implications carefully. Equity release will reduce the value of your estate and may affect your eligibility for means-tested benefits. Interest rates can be higher than standard mortgages, and the amount owed can grow quickly over time.
Our team of expert advisers can guide you through the equity release process, helping you understand the options available and whether it’s the right choice for you. We offer a FREE, NO-OBLIGATION consultation to discuss your needs, answer your questions, and help you make an informed decision.
Discover how equity release can unlock the potential of your home and provide the financial freedom you deserve in your retirement years. Contact us today to schedule your consultation.
Equity release will reduce the value of your estate and can affect your eligibility for means tested benefits.