Raise Equity On Existing Or New Property
For People Aged 55 and Upwards
You Remain The Legal Homeowner
No Tenancy Agreement Or Conditions
Ideal For The 'Cash Poor, Asset Rich'
Historically Low Interest Rates
Inheritance Tax Planning
Part Or Full Repayment Options

Raise Equity On Existing Or New Property
For People Aged 55 and Upwards
You Remain The Legal Homeowner
No Tenancy Agreement Or Conditions
Ideal For The 'Cash Poor, Asset Rich'
Historically Low Interest Rates
Inheritance Tax Planning
Part Or Full Repayment Options

Equity Release: The Facts You Need to Know

If you own your home and would like to access some of the value ‘locked up’ in your property, equity release could be a viable option. Equity release schemes are designed to help homeowners tap into some or all of the value of their home, with no requirement to relocate. However, equity release isn’t suitable for everyone and must therefore be considered carefully. If you’ve been thinking about releasing equity in your property, we strongly advise reading the following first.

Equity Release Options

There are two primary options available for homeowners looking to release equity in their home:

1. Lifetime equity release mortgage

This option sees the applicant take out a mortgage secured on the property they live in, maintaining full ownership and all associated rights.

2. Home Reversion

The owner sells their property – in part or as a whole – to a home reversion specialist, in return for a cash sum or a series of ongoing payments. The seller has the right to live in the property until their death, at which time the property (or the share thereof) is transferred to the buyer.

Key Points to Consider

While the appeal of equity release is clear, there are some important considerations that must be factored in. Before going ahead, it’s useful to use an online equity release calculator to find out exactly how much of your home’s value you could release. In addition, seeking independent advice from a reputable consultant is mandatory. If you choose to go ahead, you’ll need to bear the following key points in mind:

Equity release typically attaches higher interest rates than a conventional mortgage or remortgage. Depending on your circumstances and requirements therefore, there may be better deals available than an equity release scheme. All of which can be discussed with an independent broker.
Home reversion schemes are accessible and readily available, though offer significantly lower values than were you to sell your property on the conventional market. The benefit being the speed and simplicity of the equity release option.
Depending on the deal you agree to, you may be contractually obliged to oversee and pay for the upkeep of your home for the duration of the agreement.
Your entitlement to state benefits may be affected by the money you receive by way of an equity release scheme. If you live in an extremely valuable home and release a large part of its value, it could alter your eligibility for state benefits and support.
Arrangement fees of anything from £1,000 to £3,000 typically apply to equity release schemes in the UK.
You may find it more difficult to qualify for equity release if you are under 55 years of age, though specialist deals for younger applicants are available.
If you change your mind after signing up, exiting an equity release deal earlier than agreed can be difficult and costly.

Equity Release FAQ:

Equity release provides homeowners (typically over 55 years of age) with the opportunity to access some of the cash tied up in their home, without having to relocate.

Essentially, the process involves selling all or part of your home to a specialist buyer, who then allows you to continue living in the property until you die.

Working with a reputable and responsible specialist, equity release can be a safe and simple way to access some of the value locked into your home.

Eligibility and suitability vary from one prospective applicant to the next. Whether or not equity release is a good idea is determined by the age, financial position, lifestyle, income and intentions of the respective applicant.

Organise a consultation with an independent broker, in order to discuss the available options and assess your suitability for equity release.