Equity release is a way of getting cash out of your property without the need to move. You either borrow against the value of your home or sell all or part of it for a regular monthly income, lump sum, or the facility to get at equity as and when you like, or a mixture. You can choose to make full or part payments to the Interest, or let the Interest Roll Over. Additionally, capital is repaid upon Death or entering Long-Term Residential Care.
What Types of Equity Release Are There?
There are two main types of plan on the market:
Lifetime mortgages – this is where you take a loan out against the value of your property but you still retain ownership. There are also no repayments to make and the loan is redeemed when you die or move into long-term care.
Home reversions – this is where you sell all or part of your home to a home reversion company, but you give up all or part of the ownership.
Am I Eligible for Equity Release?
Equity Release Schemes are for Home Owners and start from the age of 55. Furthermore, any existing mortgage will need to be redeemed from the Release.
Is Equity Release Right for Me?
Remember that taking an equity release plan is generally for the long term. However, there are flexible plans available that may fit your varying needs and some will allow you to repay in the future without any penalties.
Advice is required, as everyone’s circumstances are different & unique. This is to ensure that it is suitable, meets requirements in the correct manner, without compromising the overall position.
For further protection, it is mandatory to take Independent Legal Advice. Clients can also choose their own solicitor but should look for one that is experienced in this field.