Equity Release

Equity Release

Equity Release

Your home is probably your biggest asset, and equity release can play a crucial role in funding your retirement. If you’re a homeowner over the age of 55, then you could unlock the wealth tied up in your property (without having to sell and move to another home) and use it how you wish in order to enjoy your retirement.

You can either borrow against the value of your home or sell all or part of it in exchange for a lump sum or a regular monthly income. Some plans give you the option to “draw down” further equity (cash) at a later date, based on your requirements.

However, equity release is not something to be entered into lightly; it has disadvantages as well as advantages, and these should be fully understood. Our qualified advisers offer specialist equity release advice in the comfort of your own home, using non-jargon clear English to explain everything.

When looking and assessing your options, it is vital to speak to a qualified independent specialist adviser who can help you to understand the steps involved and talk you through your options, as well as the effects this might have on state benefits and tax. Our advisers will take the time to understand your personal requirements and then search the whole market to find the right option for you.

The equity you can release from your property is usually tax free and can be used for anything you wish -

  • Holiday of a lifetime or replace the car to last through retirement

  • Home improvements or alterations to while away those retirement years in comfort

  • Help your children or grandchildren by gifting them some money

  • Repay your mortgage to free up some retirement income

  • A conservatory which will add value to your property

  • Pay off loans and credit cards allowing more financial freedom

  • Private medical bills for a health concern

This list does not cover everything, remember it is your money and you are free to spend it as you wish.

Contact us to arrange a free initial consultation.

Once you've spoken with an adviser and provided details on your specific requirements, we'll give you an illustration on the recommended equity release product, which will tell you about any fees relating to it. We'll also provide you with a copy of our About Our Services & Fees - Equity Release document.

Equity Release Council

Equity Release Council

Our Equity Release Adviser is a member of the Equity Release Council, adhering to the high standards of conduct and practice in the provision of and advice on equity release.

The Equity Release Council's Statement of Principles state that members will –

  • Ensure that all their actions promote public confidence in equity release as a potential retirement solution
  • Act at all times in utmost good faith
  • Communicate high expectations for equity release outcomes in all their dealings
  • Ensure conflicts of interest are managed fairly and reduced to the lowest practical level
  • Exercise due skill, care and diligence in all that they do and uphold the standards set out by their professional bodies at all times
  • Always act with the best interests of their clients being paramount, treating customers fairly in all their actions.

Society of Later Life Advisers

Society of Later Life Advisers

Our Equity Release Adviser is also an Accredited Member of the Society of Later Life Advisers (SOLLA), specialising in the financial needs of older people.

All full members of the Society must achieve the Later Life Adviser Accreditation and adhere to a Code of Practice to ensure their clients know what to expect from their services. Accredited advisers can advise on:

  • Retirement Planning - pensions and annuities
  • Funding for Care Home fees,
  • Funding for care in your own home
  • Equity release and other property options
  • Savings and investment planning
  • Tax matters and estate and wealth planning

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Lifetime Mortgages

Release a lump sum from your property & keep 100% ownership. Similar to a standard mortgage i.e. a loan which is secured against your property’s value. During your borrowing period you make no monthly repayments. The interest is added to the loan and the total amount is eventually repaid out of the future sale of the property after you pass away or get taken into long-term care.

A Drawdown Lifetime plan is similar, equity can be released over a longer period of time as & when you need to withdraw cash. Your maximum loan is worked out based on your age and the valuation of your property. You borrow a much smaller loan initially and then smaller loans throughout your lifetime, interest is only charged on the money borrowed from the date it is loaned to you. This can lower the total amount owed.


Home Reversion Plans

Home reversion plans are a little different; you sell all or a share of your property in return for a cash lump sum & you get granted a lifetime lease to live in your home rent free until you die or go into long term care. The amount you receive for the share you sell is based on your age.

An advantage of Home Reversion Plans is that generally they allow you to release a higher amount than available under Lifetime Mortgages.

Home Reversion Plans are not loans or mortgages and therefore there is no roll up of interest.


Interest Only Mortgages

You borrow a lump sum of money and make regular monthly repayments out of your retirement income based on the interest rate of the mortgage. Therefore you are paying all the interest and the amount you owe does not increase. The loan remains static and it gets repaid from the sale of your property or when you pass away.

For Interest Only Mortgages you may wish to cover the mortgage with Life cover. This can be arranged to repay the loan in full or in part on the first death of a couple. The main benefit is the loan is repaid from the Life cover and the repayment will stop, allowing the remaining partner to live if the income has been reduced.

Equity release plans are not right for everyone and it is important that you fully consider your options, weigh up the advantages and disadvantages, and receive independent financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you choose one that meets your needs.

Alternatives to Equity release will depend on your reasons for considering it. However, you may have other investments, savings or assets to draw on, or you may wish to continue in some form of paid work. You could also downsize to a smaller property or one of lower value – perhaps by moving to a different part of the country where house prices are cheaper.

If you are looking to release the value in your property and require clear impartial equity release advice, then get in touch to arrange a free initial consultation.

Arrange a free initial consultation


Introduction to Equity Release

Equity Release Schemes (Money Helper)

Equity Release Council Consumer Guide

A lifetime mortgage may affect your entitlement to state benefits and will reduce the value of your estate. Think carefully before securing other debts against your home. To understand the features and risks, ask for a personalised illustration. A mortgage is a loan secured against your home or property. Your home may be repossessed if you do not keep up repayments on your mortgage. Tax Planning is not regulated by the Financial Conduct Authority.