Equity release

Equity release is a way of releasing cash from your property, either through selling a percentage to the reversion company or taking a mortgage on it, while allowing you, the homeowner to continue living there as long as you wish.

TO UNDERSTAND THE FEATURES AND RISKS OF AN EQUITY RELEASE MORTGAGE, ASK FOR A PERSONALISED ILLUSTRATION.

Equity Release

Equity release is one way of funding a more comfortable lifestyle in retirement or fulfilling their aspirations, whether you want to: –

  • Supplement your retirement income.
  • Raise a capital lump sum.
  • Enjoy retirement more.

It is not uncommon for people to feel uncomfortable about discussing major financial decisions with their children, or indeed other family members or lifetime friends.

It is also not uncommon for people exclude family from their financial affairs for one reason or another, but, one of the main complaints made by families of those who have released equity from their homes – usually by taking out a lifetime mortgage against the value of the property – is that they were unaware of their parents’ decision… a decision that deprives future generations of some of their inheritance.

Therefore, it is important for them to do so, if only to get a second opinion. Older homeowners should look to those they trust to guide them when making decisions that could not only improve their lifestyle in retirement, but could also reduce what is left to future generations.

Failure to discuss finances can have other implications. Those hoping to leave an inheritance to future generations can see a large chunk of their life savings built up over decades of hard work swallowed up in care home fees or worse, left to the state in inheritance tax.

At the other end of the scale there are the so-called SKIers, as in ‘Spending the Kids’ Inheritance’, who are enjoying their retirement to the full. It may only be when they have passed away that their children and grandchildren discover, sometimes with some resentment, that the inheritance they hoped to receive has significantly diminished or done completely.

If you would like to discuss equity release in more detail and to understand if it is the right choice for you. Call now and book an appointment 01489 580020 or via our Contact Us page.

With a Home reversion plan, you sell part of your home to a private company, they in turn allow you to live there for the rest of your life, often for a nominal rent. With home reversion plans you may not receive the full market value as you would do on the open market this would be dependent on factors such as your age and the value of your property.

Home reversion plans

When your home is sold the reversion plan company will receive a pro-rata share of the proceeds from the sale. Therefore if you sold a 50% share of your home to the reversion plan company, it would receive 50% of the proceeds.

These types of home reversion plans are typically available to you if you are over age 65 years, unless you are in poor health.

What is a Lifetime mortgage? Well a Lifetime mortgage is a type of mortgage which does not require you to make monthly repayments. You retain ownership of your home and the interest on the loan rolls up (compounded).

Lifetime mortgage

The loan and the rolled up interest is then repaid by your estate (sale of the property) when you either die or move into long term care. If you live at the property with you partner, then the loan does not become repayable until the last remaining person living in the home either dies or moves into care.

You could consider taking a lump sum initially and then regular or irregular amounts each year.

You can have the option to repay the interest on the loan and not let it roll up.

Depending on the type of lifetime mortgage you require, they all have their own advantages and disadvantages, you should therefore consider which is the right option for you now and for the future requirements.

For a personalised lifetime mortgage fareham illustration or to discuss other options, call 01489 580020 or email info@parkgate.net we can then arrange an initial meeting to discuss your requirements and see if a lifetime mortgage is suitable for your needs.

TO UNDERSTAND THE FEATURES AND RISKS OF AN EQUITY RELEASE MORTGAGE, ASK FOR A PERSONALISED ILLUSTRATION

The Equity Release Council is the industry body for the equity release sector. The Equity Release Council has been renamed, formerly known as SHIP (Safe Home Equity Plans) the Equity Release Council represents the providers, qualified financial advisors, lawyers, intermediaries and surveyors who work in the equity release sector.

The Equity Release Council

Lifetime Mortgages For further information please visit www.equityreleasecouncil.com

What is Equity Release?

Equity release simply lets you release some of the money you have in your home without having to move.

Equity release schemes are usually available as either a lifetime mortgage or a ‘home reversion plan’. Continue reading