Equity Release
Unlock the value of your home.
Equity release schemes are a range of products which allow homeowners aged 55+ and who have little or no mortgage, to safely release some equity from their property to improve their life without having to move.
All specialist equity release schemes offered by us which require no monthly repayments are either approved by Safe Home Income Plan organisation (S.H.I.P) or at least meet the same standards. SHIP was set up in 1991 by leading equity release providers and is dedicated to the protection of planholders and promotion of safe home income and equity release schemes.
Such schemes offer you the following safeguards:
- You retain the right to remain in your home for as long as you choose.
- You have the freedom to move to another property, without financial penalty.
- You are guaranteed a cash lump sum payment or a regular income.
- In the case of lifetime mortgages, you will never fall into negative equity, meaning that on death or moving into care, the loan plus interest can never exceed the value of your home even if house prices drop in the future.
- Equity release schemes are tax free and can be used in many different ways to suit your personal needs, possibly to:
- Go on holiday or purchase a holiday home
- Pay for home improvements.
- Pay off debts.
- Buy a new car, motor home or caravan
- * Help your children who maybe struggling through the recession.
- * Help your grandchildren buy their first home
The list is endless.
* We strongly recommend that you obtain independent specialist advice on Inheritance tax or related tax issues, should you wish to release inheritance gifts early.
Under 55?
If you are under 55 we may still be able to help you raise money from you home with an ordinary mortgage or re-mortgage.If you would like to discuss ordinary mortgages please complete our ADD LINK TO CONTACTS FORM and indicate that you are interested in ordinary mortgages and we will call you back.
Types of equity release schemes
Equity release schemes are either lifetime mortgages or home reversion plans
- lifetime mortgages - A lifetime mortgage is a special type of loan for people usually aged over 55, that allows you to release equity from your home by means of a secured loan, which you can either repay back each month on a interest only basis, or make no repayments at all and the interest will be rolled up and the total amount accumulated will be repaid only once the property is sold on your (or in the case of joint applications - their surviving partner's death or if you permanently move into care.
- home reversion plans - A home reversion scheme allows you to sell part or all of your property to a provider in return for either a lump sum or income and a lifetime right to remain living in your property. Your home, or the part of it you sell, will then belong to the investor, but you are allowed to carry on living in it until you die or move out and you or your estate will retain the value of any share not sold.
Which equity release scheme is right for me?
Whether equity release is right for you and which equity release scheme would be best, will depend on many factors including:
- Your age
- The amount of money you need to raise
- Your future plans
- Any ongoing commitments you may have
- Your general state of health
- The possibility of moving home
- Your ongoing income needs
- Whether you can afford to make monthly repayments ( an affordability assessment will be carried out to determine this by your equity release adviser)
- How you feel about the inheritance you wish to leave to your family, and how that will be reduced by equity release
- Your eligibility for state benefits and the potential impact of equity release. Read more about what the state provides.
- The alternatives to equity release. Read more about the alternatives here.
- We would like to point out however, that all equity release products involve borrowing against, or selling all or part of your home, and may work out more expensive in the long term than downsizing to a smaller property, and may affect your entitlement to State benefits and grants. It will also reduce the amount of equity you can leave to beneficiaries.
