What is Equity Release?
If you own your house and you are over the age of 55, you may be eligible for a Lifetime Mortgage, often referred to as Equity Release.
A Lifetime Mortgage is a type of mortgage which allows you to borrow money against your home, whilst being allowed to retain ownership. Importantly, as you will continue to own your home, you will be entitled to live in it until you die (or move into long-term care).
There are a number of reasons why you might want to enter into a Lifetime Mortgage.
For some, it is an opportunity to release some of the value that you have built up in your home, without the emotional burden of having to sell it. You may want to use the money to make improvements, or to repay an existing mortgage or other loans that you may have.
With people now living longer, releasing some of the value in your home could also help you maintain your lifestyle during your retirement.
For others, equity release is a way of being able to release funds to help your family. This could be in the form of a gift to your children or grandchildren to help them get on to the property ladder, or to help them with expensive tuition fees.
Your home is probably your most valuable asset. Therefore, it is vitally important that you seek advice from a regulated financial advisor who will be able to help you select the right financial product for your requirements.
It is also important that you have legal advice from an independent solicitor who will talk you through the process from start to finish.
If leaving an inheritance is important to you and your family, then it is important for you to speak to your family about your plans to enter into a Lifetime Mortgage. This is because by entering into a Lifetime Mortgage, you could significantly reduce the amount that you will leave to your family after you have died.
Get in touch
If you are thinking about equity release, and you would like our assistance in helping you through the process, then please do not hesitate to email Dan or email John, or call on us 020 8447 3277 and we will be happy to help.