Equity Release


Equity release is a form of borrowing that allows you to access the wealth you have tied up in your home. It has become increasingly popular and can be used for a number of scenarios, including:

  • Enhancing lifestyle in later life
  • Funding a significant purchase such as a new car or conservatory
  • Making changes to the home to enhance mobility access
  • Making gifts to manage Inheritance Tax liabilities
  • Helping family members with milestone events such as weddings or house purchases
  • Funding care in the home
  • Paying off the balance of an Interest Only Mortgage

Equity release is not something that should be undertaken lightly and it is important that the homeowner involves family and other advisers in the decision. However, it is a straightforward process: our Equity Release specialist, Diane Fish, will ensure that the homeowner understands the implications. Diane hold the Later Life Academy accreditation, awarded to advisers who demonstrate both knowledge of later life issues and an empathetic approach to vulnerable or elderly clients.

There are two main types of Equity Release:

  • Lifetime Mortgage: this is a mortgage arrangement but no repayments are required during your lifetime. The sum borrowed plus the interest is repaid on your death or if the property is sold. In most cases, the arrangement we recommend takes the form of a “drawdown plan” which is a flexible arrangement where a maximum release amount is agreed at the outset with the provider but you only actually draw what you need when you need it. This means you only pay interest on the amounts you have drawn.
  • Home Reversion Plan: with this type of plan, all or part of the ownership of the property is transferred to the lender and a percentage of the value of the agreed share of the property is passed to you.   If you have retained a share of your property, you – or your estate – will get the value of that share when it is sold or on your death.

Contact us to discuss a possible Equity Release arrangement for yourself or a family member.

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