For many people, their home is their most valuable asset. Unlocking this value through equity release is an option that an increasing number of over 55s are considering to help them plan financially for retirement.
Individuals aged 55 and up can use equity release to withdraw funds from their home without having to make monthly payments. Lifetime mortgages and home reversion schemes are the two types of equity release. A house owner can use an equity release product to take a lump amount or regular smaller sums from the value of their home while still living there.
There are increasing range of new and innovative of products to choose from in the modern equity release market. There is likely a plan available, whatever your equity release requirements are.
Equity release can be utilised for a variety of purposes, including:
A lifetime mortgage is the most common type of equity release. Customers who take up a lifetime mortgage keep full ownership of their house, and any interest on the loan can be paid as it accrues or rolled up and paid at the end.
When you die or move to permanent long-term care (or in the event of a couple, the last person residing in the home), your estate repays the loan and any outstanding interest.
The amount of money a customer can borrow is determined by factors such as their age, health, and the value of their home. Only persons over the age of 55 are often eligible for lifetime mortgages.
If you make the decision to take out either a lifetime mortgage or a home reversion, you must also take independent legal advice
You will need to take legal advice before releasing equity from your home as Lifetime Mortgages and Home Reversion plans are not right for everyone.
Helen has handpicked a dedicated expert to help even more clients. Our Equity Release specialist Michael can assist with all your enquiries in this area.