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Equity Release

What is Equity Release?

Equity release allows individuals aged 55 and over to release money from the property they live in without having to make any monthly repayments.

There are two types of equity release; Lifetime Mortgages and Home Reversion plans. Both of these are regulated by the Financial Services Authority. By using an equity release product, a home owner can draw a lump sum or regular smaller sums from the value of their home, whilst remaining in their home.

Equity release can play a crucial role in retirement funding and the flexibility and safeguards which are built into all plans approved by the Equity Release Council enable thousands of home owners every year to tap safely in to their housing wealth without having to worry about making monthly repayments.

If you are thinking of taking out an equity release plan then you need to find out as much as you can about your options and weigh up the advantages and disadvantages fully before you decide if equity release is right for you.

As a fully qualified equity release independent financial adviser I can help you to understand the steps involved and talk you through your options, the effects this might have on state benefits and tax and your obligations. As well as explaining the disadvantages of equity release I can also explain the full benefits of equity release.

It may not be right for many people, however if it is done correctly equity release could have a great improvement to your lifestyle. It is essential that an individual’s circumstances needs are assessed competently.

Part of your choice will be over the type of plan required. In the modern equity release market there are a range of products to choose from, with new and innovative products being created regularly. This means that whatever your equity release needs, there is likely to be an equity release plan available to meet them.

Overview

With both a lifetime mortgage and a home reversion plan it is possible to give a homeowner some certainty in their future finances.

With a home reversion plan the client knows precisely what he/she has parted with and, equally, what has been ring-fenced for later use, possibly to leave in a Will. With some lifetime mortgages it may be possible to also ring-fence an element of equity.

Within these two categories, there are many different options available and it is important that your current and future needs are matched with the right type of equity release plan, which I as an experienced equity release qualified adviser can help you with.

There are advantages and disadvantages in both types of plans so it is important for you to find out as much as you can, to get qualified advice and, if possible, to talk it over with your family to ensure you choose the best plan to fit your needs.

 

There will be a charge for arranging an equity release scheme. The precise amount of the fee will depend upon your circumstances.