The Jewish Chronicle

Equity: would I lose

- BY ELLIOT SIMBERG

IS IT true that, if I take out a lifetime mortgage, I give up any rights over my home?” The short answer to the question is no. But the question should really be: “what is equity release?”. If you own your property outright or if it is worth more than any loan secured against it, you have probably got some equity tied up in it. Equity release could allow you to obtain some of that money, to be used for any reason — to buy a holiday home, to help your children or grandchild­ren, have a better quality of life, replace the interest-only mortgage, pay for longterm care, etc.

As long as you are 55-plus, you may qualify for a lifetime mortgage. This is a form of equity release that allows you to access the equity tied up in your home, as a long-term loan secured on your property. Although this is a mortgage, you do not have to make monthly repayments. The loan is designed to be repaid in full, usually from the sale of the property, when you (and/or your partner if it is a joint mortgage) pass away, or if you move into long-term care. But most importantl­y, you continue to own your home.

Elliot Simberg is an independen­t financial adviser at Vintage Wealth Management, 020 8371 3111. Equity release may involve a lifetime mortgage or home reversion plan. To understand features and risks, ask for a personalis­ed illustrati­on

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