What is equity release and could it be right for you?

Property wealth is playing an important role in retirement finance planning. 

If you’re a homeowner aged 55 or over, you could release from a minimum of £10,000 up to 58% of the value of your property as tax-free cash. 

Equity release allows you to release money from your property whilst still continuing to live in the home you love. The money that you release is tax-free and you can choose to access it as a lump sum or as smaller amounts over time – whichever works best for your individual situation.

Make your retirement more enjoyable

Equity release is a solution for those aged 55 or over and often used to supplement a shortfall in pensions or income as they approach, or are already enjoying, retirement. The amount of money that you can release is determined by the age of the youngest homeowner and the value of your home, which must be worth more than £70,000.

There is no requirement to make monthly repayments if you don’t wish to, as the money that you release, plus the interest that you accrue, is repaid when you die or move into long term care.

Could now be a good time to consider equity release?

The popularity of equity release has soared over the last decade. As a result, the number of plans has grown dramatically and many lenders are now offering more flexibility and choice for customers. Interest rates have also dropped, with current average low rates meaning the money you borrow could cost you less over the life of the loan compared to when interest rates were higher.

What does it involve? 

Equity release may involve a lifetime mortgage which is secured against your property or a home reversion plan. To understand the features and risks, ask for a personalised illustration.

Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death or moving into long-term care. Equity release could affect potential inheritance and it could affect your entitlement to current and future means tested benefits, either now or in the future.

We provide initial advice for free and without obligation. Only if you choose to proceed and your case completes would a typical fee of £1,795 be payable.

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