Equity release is a way to unlock the value of your property, gaining a tax-free lump sum or income in exchange for part of the value.
The term ‘equity release’ is rather broad, as there are a range of products that enable you to access the equity tied up in your home, yet these products are only available if you are over 55. Whether you are eager to embark on another property investment, wish to enhance your lifestyle or help your loved ones climb the property ladder, equity release can significantly improve your financial situation.
Equity release is not for everyone:
Get the professional advice you need
At Mortgage Store, we have helped many homeowners release equity from their homes, enabling them to enjoy a more comfortable retirement without the need to move to a new house or downsize.
That said, with all equity release plans, you are reducing the value of your estate. Therefore, taking out an equity release plan can affect your entitlement to state benefits, whilst some schemes may work out more expensive (or inflexible) in the long run.
If you are considering releasing some of the equity tied up in your property, we recommend you seek professional, impartial, and transparent advice — and that is where our equity release brokers in Ampthill can help! By learning more about your financial situation and lifestyle goals, we can help you decide whether equity release is suitable. If so, we will recommend the best fitting plan, thoroughly explaining our reasoning answering all of your questions.
What are the equity release options?
There are various equity release schemes, but the most popular types are lifetime mortgages and home reversions.
Lifetime mortgages - A lifetime mortgage plan gives homeowners (aged 55 and over) the ability to borrow money against the value of their home whilst retaining full homeownership for life. There are various types of lifetime mortgages, including interest-roll up and interest-paying. We would be more than happy to discuss the most suitable options for you and your family after learning more about your situation during your initial consultation.
Home Reversion - With a home reversion plan, you must be at least 60 years old to qualify. You sell a share of your home in exchange for a lump sum or regular income. In most cases, homeowners who take this route also stay on in their home as a tenant, paying no rent whilst the lender cannot sell the share until you die or move into care. With no interest charged, the percentage sold remains fixed until the end of the home reversion plan term.
It is important to understand that both forms of equity release are complex. With any equity release plan, our friendly mortgage brokers in Ampthill, Bedfordshire will outline the features and risks. If we don’t think equity release is the right solution for you, we will let you know.