Equity Release
What is Equity Release? The value of your home, less any mortgage is known as 'equity'. Equity Release is the name given to a range of financial products that convert a proportion of that equity into cash for your own use.
Equity Release Schemes usually have the following common factors:
* Minimum age for an Equity Release Scheme is 55.
* You receive a guaranteed tax-free cash sum or income for life.
* You continue to live in your home for as long as you wish.
* You have the freedom to move to a suitable property should you wish to do so in
the future and transfer your equity release scheme to your new home (subject
to approval by the Lender).
* Your estate will not be liable for any debt beyond the property value regardless
of future house prices
Today, Equity Release has evolved into a financial tool for many in retirement. However Equity Release is not suitable for everyone. Careful consideration should be given to the alternatives to Equity Release first. In addition, the value of your estate and therefore any inheritance you leave will be reduced, and people who claim State Benefits can have their entitlement affected by taking out Equity Release. Taking advice from a specialist Equity Release Advisor will ensure you make the right decision over whether to proceed with Equity Release or not.
We offer a free of charge, no-obligation, consultation with an equity release advisor so that you can find out how much cash you can release and whether a plan would be suitable for you.
The following is a list of real-life situations where a customer has decided to complete an equity release scheme. It is intended to give you an idea of the real value that these equity release clients have enjoyed:
* Repayment of a mortgage to increase monthly income.
* A tax-free lump sum for a private hip operation to avoid a lengthy waiting list.
* Help a family member buy their first home.
* Help finance the purchase of a new home.
* Replacement of family car and home improvements.
* Supplement pensions and share investments.
* Reduce the value of the estate to reduce Inheritance Tax.
* Be with the grandchildren and 'enjoy my money whilst I am alive'
* Buy a motor-home to travel throughout Europe.
If equity release is suitable for you then the benefits can be priceless. If you are considering equity release, obtain impartial advice. It costs nothing to obtain a free personalised illustration.
This is a life mortgage. To understand the features and risks, ask for a personalised illustration.
Advisors for Equity Release products must now also have specific qualifications in this specialist field.
The market is also protected by an industry body known as SHIP (Safe Home Income Plans). Set up in 1991, SHIP is dedicated entirely to the protection of plan holders and promoting only safe equity release schemes. Their Code of Practice has been welcomed by Age Concern.
Some of these guarantees are as follows:
* The right to remain in your home for as long as you choose.
* The freedom to move to another property without financial penalty (subject to
lenders' criteria).
* That you will never fall into negative equity no matter what happens to house prices in the future.
* Independent Legal Advice from a solicitor of your choice.