Equity release
Get impartial expert advice to see who offers the best equity release deals for you
Equity release schemes enable homeowners aged 55-95 to access equity in their property usually through a product known as a lifetime mortgage. This means value built up in your property doesn’t have to stay tied up in the bricks and mortar and many people are tapping into some of this wealth to help boost their retirement lifestyle. The money you receive is tax-free and yours to spend as you wish while your home remains your own.
We provide impartial equity release advice to clients throughout Torbay, South Devon and Exeter. If you’re considering releasing some of the cash locked in the value of your home, contact us to arrange a free initial, no obligation consultation. We’ll search the whole market to find the right equity release plan for you.
Equity release is not appropriate for everyone, which is why it’s important to get independent advice before you decide.
All providers
We work for you, not the which means we can give you advice on all products from every provider – across the whole of the market.
Free expert advice
Our initial advice service is free and without obligation. We'll only charge a fee should you proceed with our recommendation.
Hassle free
We deal with providers on your behalf throughout the application process until completion.
Reasons for releasing the cash
Average life expectancy in the UK has seen a significant increase in the past 20 years and as people are living longer and pension funds are not what they once were, for many, savings must stretch a lot further to last throughout retirement. With less money to go around, equity release is becoming popular option.
If you are considering releasing equity you’ve probably got a plan in mind for what you’re going to spend it on. You can spend the tax-free cash released from your home as you desire with some of the most common ways including:
- Making home improvements
- Going on holiday
- Buying a new car
- Gifting money such as helping younger family members get onto the property ladder
- Clearing personal debts such as credit cards and loans
- Repaying off existing mortgage
Wide choice of products
The equity release market has undergone a transformation in recent years, becoming more flexible with a wide choice of plans tailored to fit individual requirements.
A lifetime mortgage is a long-term loan that’s secured against your property and is repaid either when the home is sold, usually when you move into long-term care, or when you and your partner pass away. You can typically release between 5 and 55.5% of the value of your property depending on your age, health and lifestyle.
You will still own your home and can benefit from increases in property value. A lifetime mortgage with a ‘no negative equity’ guarantee ensure that regardless of what happens to house prices or interest rates, the final debt that needs to be repaid will not exceed the sale value of your property.
There are two types of lifetime mortgage – a lump sum lifetime mortgage and a drawdown lifetime mortgage.
Lump sum Lifetime mortgage
As the name suggests, you receive a tax-free cash lump sum to spend as you wish, with typically no monthly repayments to meet.
You will not repay any of the debt during your lifetime, interest will be added to the amount borrowed for as long as you live in the property. This interest, along with the original sum of money borrowed, will eventually be repaid by your estate.
Drawdown Lifetime mortgage
Drawdown lifetime mortgages work in the same way as lump sum lifetime mortgages but with the flexibility of being able to take out the money in stages.
Once you know the amount of money you can release, after an initial sum is paid you can then choose to ‘drawdown’ the remaining cash in stages as and when you want to. The interest is only added on the amount released so it adds up more slowly than it would if you released the full amount at the outset. Drawdown plans are a flexible option and can form an essential part of planning your finances in retirement.
Home reversion
While most people find that a lifetime mortgage suits their needs best, a home reversion plan allows you to sell part or all your home to a reversion plan company in return for a tax-free cash lump sum. There will be no monthly repayments to make.
You have the absolute right to stay in your home rent-free for as long as you choose and because of this you don’t typically receive full market value for the share of the home you sell.
Both you and the reversion plan company share in any increase in your property’s value, providing you have not sold 100% of its value.
When the last homeowner dies or moves into long-term care, the house is sold, whereupon the respective percentages are then divided accordingly between the lender and your estate.
We put your needs first
We provide impartial equity release advice to clients based in Torbay, South Devon, Exeter and East Devon, West Dorset and Somerset.
We can access every provider in the marketplace, and we’ll find the best product to meet your needs. During the process your adviser will ensure you have considered all the alternatives including downsizing your home, seeking assistance from family, using any savings you have to fund your plans or considering other forms of borrowing. If equity release is not right for you, we’ll tell you!
Releasing the equity in your home is a big decision, so it’s important to consider all of your options and weigh up the pros and cons. A lifetime mortgage will reduce the value of your estate, it could change your tax status and may affect your entitlement to benefits plus there will be fees to pay if you proceed. Seek professional advice to get a full understanding of what’s involved and to find out whether it's right for you.
While many people are benefitting from the advantages of equity release, there are still a few misconceptions which may prevent some over 55s from considering it. Here, we debunk 5 equity release myths.
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