Equity Release is your way of taking a portion of your property’s value as a tax free lump sum. The most popular method is with a lifetime mortgage which you retain 100pc ownership of your home. Unlike a traditional mortgage you do not have to make any monthly payments. If you make no payments interest will be added and roll up over time. This is not due to be paid back until the last homeowner on the deeds dies or moves into long term care. The amount to be paid back is usually on the sale of the home.
To be able to take Equity Release you must be a UK homeowner minimum age of 55 and your home worth at least £70,000. Your home must be your main residence. The amount you can release is by both your home’s value and your age with a minimum release of just £10,000.
Homeowners are taking Equity Release for many different reasons for example Home Improvements, Holidays in the UK and Overseas, Paying off an existing Mortgage or credit card debts, buy a new Car, Helping their Children or Grandchildren with a deposit to buy a home rather than seeing them paying rent. With a lifetime mortgage you can have a drawdown scheme where you can take an initial tax free lump sum but to have a further drawdown to be accessed at a later date if required. You do not pay interest in your reserve until you draw down this gives you better control over the roll up of interest.
You could if you choose make voluntary payments up to an agreed amount each year on some schemes this can be stopped at any time. Equity Release Independent advice will mean you will get advice from the whole of market and it is important to discuss your needs in detail to ensure Equity Release is right for you. It is also important to understand the potential effects on your estate’s value and any entitlement to means tested benefits.
Do you want to find out if Equity Release is right for you?
For a no obligation meeting with an Advisor please call 01244 322199 or 07985903620 www.equityreleasemoney.co.uk
