Equity Release
Releasing money from your home to help loved ones
This year has made many of us review what’s important to us. The period in lockdown gave us more time with our families, whether that be in our home or learning the art of video-calling to keep in touch with those who live further away.
Research by equity release broker Age Partnership has seen an increase in the number of clients releasing equity in order to financially help their loved ones. These cash gifts are commonly used to help children and grandchildren with a deposit for their first homes, a huge achievement that many strive towards. And, with stamp duty currently reduced until March 2021, it’s more important than ever.
Equity release enables you to release tax-free money from your home. And, once you’ve paid off any existing mortgage that you may have, the money that you release is yours to spend as you wish, such as helping family or repaying debt.
What’s more, with a lifetime mortgage, the most popular form of equity release, you maintain 100 per cent ownership of your home.
How does it work?
Contact the Mail Finance Equity Release Service. We work with the UK's number one equity release advisor1 Age Partnership, who will provide you with a free quotation outlining how much tax-free cash you can access.
Age Partnership is a whole-of-market advisor, so through our service we can find the best plan for your circumstances from the full range of lenders, such as; Aviva, Scottish Widows, Legal & General and many more.
Your advisor will give you all of the information that you need, including explaining how equity release could affect the amount of inheritance you can leave and if your entitlement to meanstested benefits could be affected now or in the future.
Your advisor will do all of the hard work for you, liaising with the lender and solicitor on your behalf.
The lender will consider your application and the money could be with you in as little as 8 weeks.
No negative equity guarantee
As the requirement to make monthly repayments is optional, the money that you release plus any accrued interest, is repaid when you die or move into long-term care.
Most equity release plans now carry a ‘no negative equity’ guarantee. This means that when your home is sold, even if the amount left is not enough to repay the lender in full, neither you nor your estate would have to pay any more.
Only if you choose to proceed and your case completes would a typical fee of 2.25 per cent of the amount released be payable (minimum £1,695).
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.