Equity Release
Equity Release is a term used to describe a variety of ways in which you can safely unlock some of the equity which is tied up in your home to provide you with either a lump sum or extra income, without the need for you to move or even make monthly repayments unless you want to.
They are available from fifty-five years of age, but in practice are not suitable until you have reached seventy years plus.
There is a scheme called SHIP that approves equity release schemes, and of course they are regulated by the FSA.
You can stay in your own house for life, and you may choose to make no repayments during your life time.
The money raised from equity release schemes is tax free and can be used however you want.
Often these schemes can prove expensive, and downsizing is usually a far better option. They certainly reduce the inheritance you will leave for your children.
There are various different types of Equity Release schemes.
Equity Release schemes are either Lifetime Mortgages or Home Reversion Plans. To find out more about each, click here:
This is a difficult area of financial planning, and we would urge you to talk to our Equity Release experts before making a decision.
If you are under 55, we may still be able to help you raise money from your home with an ordinary mortgage or a re-mortgage.
If you would like to discuss ordinary mortgages, please call us now.
