Helping you to release equity from your home
What options do I have?
Broadly, there are two types of equity release scheme: home reversion and lifetime mortgage, with many options within these.
Home reversion plans are for over 65s. You sell a proportion of your property to the provider and retain the right to remain in the property, without interference from the plan provider, until you die or move into long-term residential care.
You can receive the value you released in a tax-free lump sum or regular income. When the property is sold, the proceeds are shared according to the proportions of ownership agreed at the outset.
A lifetime mortgage is a long-term mortgage with no compulsory repayments. Instead, interest is added to the balance of the loan, builds up and is repaid when you sell the property.
Some lifetime mortgages also offer the opportunity to make repayments to stop the compound effect of interest roll-up. Any remaining balance from the sale is paid to you or your estate.
Will I risk losing my home or leaving a debt to my estate?
No. As long as you use a lender that is a member of the Equity Release Council, they will provide a ‘no negative equity guarantee’.
This means if the amount owing is more than the property value, it will never become a debt to you, or your estate. And, you won’t be forced to sell the property.
What about my next of kin and their inheritance?
We strongly recommend that you consult with your family prior to entering into any equity release plan.
It can be a shock for family members to find that their inheritance is significantly less than they had anticipated because the equity release loan must be paid out of the proceeds of the property sale.
Get in touch today to find out how we can help you.
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St Mabyn, Cornwall