Release Equity
on your property.

What is Equity Release?

Equity release is a financial solution that allows homeowners over the age of 55 to access the money tied up in their property, without having to sell or move. It's a way to unlock the wealth you've built up in your home, gift it to your family, use it to fund your retirement, make home improvements, or enjoy the lifestyle you deserve. With equity release, you can enjoy the best of both worlds - the security of owning your own home, and the flexibility to access the cash you need, when you need it.

One of the benefits of equity release is that the money you unlock from your home is tax-free and you can choose to spend or save it however you wish.

There are two main types of equity release: Lifetime Mortgages and Home Reversion plans.

Lifetime Mortgage

A Lifetime Mortgage involves taking out a type of mortgage that gives you the flexibility of not having to make monthly repayments (although you can opt to do so). You receive a tax free lump sum, retain ownership of your home and the loan and the interest on it are rolled up (compounded) and repaid from your estate when either you pass away or you move into long term care.

If you are part of a couple, the repayment is not made until the last remaining partner living in the home either passes away or moves into care, meaning that you both get to live in your home for the rest of your lives.

With a Lifetime Mortgage, you can choose to receive a lump sum or smaller, regular amounts. You can usually increase the amount you have borrowed as you wish, up to the maximum amount agreed with the plan provider.

With a Lifetime Mortgage you can benefit from releasing some equity while still leaving something to pass on in your will.

You can decide whether to make monthly repayments or not, with an option to change at a later date if the monthly repayments become unaffordable.

A lifetime mortgage can also be used to help with the property purchase.

Some people may be eligible to release larger lump sums.

Home Reversion

Home Reversion means that the provider will purchase some or all of your home. They will purchase your home for a tax free cash lump sum (or regular payments) based on your age and your health circumstances. You will then receive a lifetime lease, guaranteeing you the right to stay in your property rent-free for the rest of your life. It remains your private home and you can generally treat the house exactly as you did before. There is no day-to-day interference.

The percentage you retain in your property will remain the same regardless of any change in the properties value.

At the end of the plan, your property is sold and the sale proceeds are shared according to the proportions of ownership.

With a Home Reversion Plan you know exactly what you have parted with and what remains, possibly to leave in your Will.

Why release Equity?

Firstly, equity release can provide a way to access a lump sum of money for homeowners who are asset-rich, but cash-poor. This can be particularly useful for retirees who have limited income and savings but have a significant amount of equity in their home. By releasing some of this equity, they can access funds to cover expenses such as home improvements, medical bills, or to fund their retirement lifestyle.

Equity release can also be an option for those who want to help their children or grandchildren financially. Many young people today face significant financial challenges, such as high student debt and soaring house prices. By releasing equity, parents or grandparents can help their loved ones get on the property ladder or pay off their debts.

Another reason someone might consider equity release is to enjoy their retirement to the fullest. Whether it's taking that dream holiday, pursuing a hobby or just having the peace of mind that they have the funds to cover their expenses, equity release can provide the financial freedom to enjoy retirement without worrying about money.

Equity release can also help homeowners who want to downsize but do not want to move from their current home. Rather than sell their property and move to a smaller home, they can release equity from their current property, allowing them to stay in the home they love and use the released funds for any purpose they wish.

Finally, equity release can be used to pay off existing debts or mortgages. This can help homeowners to reduce their monthly outgoings and free up cash flow, providing greater financial security in retirement.

Can I apply?

You usually need to be at least 55 years old to be eligible for equity release and take the money (tax free) as a lump sum, or regular smaller payments, or both.

If you'd like to find out about releasing some equity from your home, complete our form and one of our team will contact you to discuss your options.