We do not provide advice on equity release but can refer you for advice and guidance to one of our carefully chosen equity release partners
There are various types of plans available to homeowners aged 55 and over. With Lifetime Mortgages where the interest is rolled up, a loan is taken out on the property to provide a lump sum, an income or a combination of the two. No interest is payable until the home is sold, which could be when you and your partner have both died or gone into long-term care.
A Lifetime Mortgage with a drawdown facility allows you to take the cash in stages as it suits you. This can be useful as it gives flexibility and the reassurance that you can access further funds at some point in the future should you need them. Interest is also only charged on funds when they are drawn down.
What Equity Release plans are avilable?
A lifetime mortgage allows you to release a lump sum of cash from the value of your property. There is no requirement to make regular monthly repayments as the amount that you have released, plus any interest, is repaid from the money made when the property is sold. Generally this is when you die, or move into long-term care.
This is similar to the standard lifetime mortgage. However, with the drawdown lifetime mortgage, you can access your money with more flexibility. Rather than just receiving a lump sum, you have the option to release your cash over time, as and when you need it. Because you only pay interest on the cash that you have taken, these plans can often prove to be more cost-effective.
This is like a standard lifetime mortgage. However, you make regular monthly repayments to reduce the effect on the value of your estate. Some plans allow you to make monthly repayments that are equal to or less than the amount of interest that is charged. The balance is paid off from the value of your estate once you have died or have moved into long-term care.
A home reversion is a plan only available to those aged 65 or over. This plan allows you to exchange the ownership of some or all of your property for a lump sum of cash, whilst retaining the right to stay in the property, free of charge, for as long as you live. This is also known as a ‘lifetime lease’. Because you can continue living in your home, rent-free, for life, you would generally receive an amount for your property that is lower than its market value.
Money Sage operate a referral service for equity release and have chosen Age Partnership as their preferred provider although if required, introductions can be made to qualified solicitors and/or chartered financial planners.
The Age Partnership advisors will tell you everything you need to know about equity release
including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future. Equity release may involve a home reversion plan or a lifetime mortgage which is secured against your property. To understand the features and risks ask for your personalised illustration.
You only continue to own your own home with a lifetime mortgage which is secured against your property.
Only if you choose to proceed and your case completes would a typical fee of 1.95% of the amount released be payable (minimum £1,495). Equity release requires paying off any outstanding mortgage. Equity released, plus accrued interest to be repaid upon death or moving into long-term care.
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