Raising cash through equity release

Using the value of your home to provide either a cash lump sum or monthly payments
Generally, there are two types of equity release, 1) an equity release mortgage plan (a Lifetime Mortgage) or 2) an equity release home reversion plan. In both instances, age is the primary factor in determining the percentage of the value of your home that can be released.

A person of an older age can release a higher percentage of the value of their home, than a person of a younger age, as they are not expected to live as long. There is no maximum age limit for equity release, whilst applications are not usually granted for anyone under the age of 55.

Important factors to consider;

  • Home Reversion Schemes were regulated by the Financial Services Authority (FSA) from 6.4.2007.
  • When choosing an equity release plan, ensure that it has negative equity guarantee. This means that  you or your beneficiaries can never owe more than the value of your home.
  • If you move home to a new property that is suitable to the lender, you should be able to move the mortgage under the same terms and conditions.  
  • In certain circumstances, releasing money via Equity Release can impact on benefit entitlements.
  • If you are living with a partner, you must take out a joint plan to ensure that the debt will only be reclaimed after the death, or admittance into long term care, of the last surviving partner.
  • There can be additional charges, such as legal fees (as a solicitor is needed to set up the equity release plan) and a charge for the valuation of your property. There may also be charges for the setting up and redemption of the loan.
  • You retain full ownership of your home until your death or admittance into long term care.

In order to understand the features and risks, please ask for a personalised illustration.

For further information on these or any other schemes or to discuss your individual requirements please contact us on 0208 256 1910, alternatively please complete our online contact us form.

 

You have the option of having the commission we receive from a lender refunded to you and paying a COBRA Financial Services Fee. If you choose this option our fee would normally be 0.5% of the mortgage loan.

Authorised and regulated by the Financial Services Authority. The FSA do not regulate some forms of mortgage. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE