Equity Release and Lifetime Mortgages
Equity Release is a way of releasing some of the capital you have worked hard to build up in your home so that you can continue to live in the home whilst benefiting financially from its value. You can elect to receive a regular income or a lump sum depending on your personal needs. As it’s already your money, it is also tax free!
You don’t need to repay any of the capital or the interest accruing on the balance released but you can elect to pay some or all of it back over a period of time if you wish. The capital you out take plus the interest which you don’t repay is simply taken from the sale of the property upon your death.
Past issues with Equity Release have been the roll up of interest when Interest rates were at a much higher rate. This meant the interest accumulated rather quickly, thus diminishing the remaining equity. However, interest rates are nowhere near these levels nowadays plus the new generation of schemes allow you to repay part or all of the accumulating interest if you so wish.
In the case of joint ownership, The product comes to an end on second death or if the surviving person has to go into care. In other words, both you and your partner are free to live in your home for the rest of your lives and the property also stays in your name.
If you have beneficiaries, they still benefit from an inheritance although the estate value is simply reduced to take into account the money you’ve used for yourself.
What can Equity Release be used for
Equity release can be used for a variety of purposes including:
- Adapting/improving your home to enable you to remain living independently for longer;
- Paying off debts, such as outstanding mortgages or credit cards;
- Paying for help around the home, including domiciliary social care;
- Purchasing a new car or other “large ticket” items;
- Providing financial assistance to your children and grandchildren – perhaps with a deposit on a house or to help them through university;
- Taking a holiday of a lifetime, perhaps to visit family living overseas;
I’m interested in Equity Release: what do I do next?
When considering Equity Release you should always seek independent advice from a Financial Adviser who has access to all of the products available and can ensure that the best one to meet your needs is recommended. Here at Premier Financial Group we offer a free, no obligation meeting where we can explain all of the features of the plans and how they work. The feedback we have had has been superb, simply by unlocking what’s rightfully theirs and improving lifestyles.
For further information contact Mark Shubrook on 01603 750020.
Premier Financial Group are permitted and regulated by the Financial Conduct Authority (FCA) to advise and recommend equity release products.