Equity release
How to unlock tax-free cash from your home
Equity release is a means of accessing a percentage of your property value while still living in your home. The money that you release is tax-free and can be accessed as a lump sum or smaller instalments at a later date.
With the most popular form of equity release, a lifetime mortgage, you also continue to own 100 per cent of your home. The amount of money that you can access is determined by the age of the youngest homeowner and the value of your property. You must be at least 55 years old to consider equity release and your property must be worth £70,000 or more.
One of the main benefits of equity release for many people is that it provides you with a tax-free lump sum of cash and you’re not required to make any repayments if you don’t wish to.
How is that possible?
The money that you release, plus the interest that you accrue, is repaid when you die or go into long-term care and your property is sold.
The rise in popularity of equity release means that there are now more plans on the market than ever before.
There are now plans that allow you to pay off some of the interest each month and you can choose the percentage that suits you. By paying a percentage of the interest, you can reduce the amount of debt that is being rolled up.
Safeguarding for your loved ones
There are also plans that allow you to safeguard a percentage of your property value so that you can pass this on to your loved ones.
You may also be concerned about passing on debt to your family, but all equity release plans come with a no negative equity guarantee, which means that you can never pass on the debt to your estate, providing the property is sold for a reasonable amount.
Get advice
An independent equity release advisor will explore all options with you, and 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.
Through our service we provide access to a free equity release quotation outlining what equity release could mean for you. You’re under no obligationeto proceed with anything that is recommended to you.
Only if you choose to proceed and your case completes would a typical fee of £1,795 be payable.
What's involved?
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. Equity release requires paying off any existing mortgage, but this can be done using some of the money that you release. To request your FREE guide, or to find out more, call 0808 239 3421.