Equity release schemes allow you to take advantage of the equity built up in your property. This release of equity from your home can then be spent on anything you wish.
You have the option of paying back the interest, or not, and the plan will run until the last person has died, or moved into long term care. At that point the property is usually sold, with the proceeds of sale used to pay off the equity release scheme and the balance passes to any beneficiaries.
If you are a homeowner age 55 or over, you could be eligible to release cash from your property; in the form of a tax-free cash lump sum or an income for life. Equity release schemes today are increasingly flexible and are designed to meet modern day lifestyles.
There are two main types of Equity Release schemes available: -
You can take out a loan against the value of the property. These do not usually require any repayments until you sell the property. This is known as a Lifetime Mortgage. They come in various guises such as the drawdown, interest only and now enhanced lifetime mortgages.
You can sell all or part of your property in exchange for a lifetime lease, which provides either a tax free lump sum, additional income, or both. This are known as Home Reversion plans and only account for 2% of all equity release applications made nowadays.
Depending on your financial requirements and current situation, an Equity Release Supermarket adviser can discuss with you which equity release schemes are suitable.
You can be confident that we have the expertise and experience to offer the right equity release solutions for you.
Additional resource regarding equity release information can be found by following the links opposite...
These are lifetime mortgage and home reversion plans. To understand their risks, please ask for a personalised key facts illustration.
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