Equity Release

Equity release allows homeowners, usually aged 55 or over, to access the value of their property without selling, providing a lump sum, regular income, or both.

It’s a financial planning tool that can boost income during retirement or fund large expenses. You can even use the money to travel and pay for a grandchild’s education.

Furthermore, equity release can use to mitigate inheritance tax. 

Equity release schemes let you borrow against your home or sell a portion of it while maintaining the right to live there until you die or move into long-term care.

The funds can be received as a lump sum, or at ad-hoc and regular intervals. 

You can use the money your release from your home as you wish – to travel, make home improvements, or to pay a deposit of a loved one’s first home.

Typically, homeowners aged 55 or older with a property of a certain value are eligible for equity release.

The exact criteria can vary between providers, and factors such as property type and location can also influence eligibility.

The two main types are lifetime mortgages and home reversion plans. Lifetime mortgages let you borrow against your home, while home reversion involves selling a part or all of it. Each type has its own pros and cons depending on your circumstances.

Equity release provides access to cash tied up in your property without needing to move. Secondly, it can supplement retirement income, fund home improvements, or help with care costs.

Lastly, equity release offers flexibility, with options for a lump sum or regular payments, and you can stay in your home.

Equity release can reduce your estate’s value, potentially affecting inheritance. The interest rates can be higher than regular mortgages and compound over time.

It may impact means-tested benefits and pose substantial early repayment charges. Home reversion plans could undervalue your property, and falling property prices could lead to negative equity.

The amount depends on your age, property value, and specific provider’s criteria.

Generally, older applicants can access a higher percentage of their home’s value. The maximum release can vary significantly between providers, so it’s important to shop around.

If you are considering equity release, talk to one of our experienced advisers today.

Yes, most equity release schemes require you to be at least 55 years old. Some providers may set a higher minimum age.

The older you are, the more you can typically borrow, reflecting the shorter expected loan duration.

With a lifetime mortgage, the most common type of equity release, you retain ownership of your home. In a home reversion plan, you sell part or all of your home but retain the right to live there.

The costs of equity release can include fee for arrangement, property valuation, solicitors, and potentially early repayment charges.

Furthermore, the interest on the loan can also significantly increase the total amount repayable.

Therefore, it’s important to consider these costs when assessing the affordability of equity release.

Many equity release schemes allow you to move your plan to a new property, subject to the new property meeting the provider’s criteria. This flexibility can be important if your needs or circumstances change in the future.

Always consult an experienced adviser when considering your options.

We have a network of financial advisers across London, the Home Counties and the South of England. 

Our skilled, experienced professional advisers will walk you through the process at a pace best suited to your needs and busy lives.