Equity Release is a way of releasing the wealth tied up in your property without having to sell it and move into a new home. There are a number of ways that this can be achieved and our experienced advisers are here to help and guide you in making this important decision.
Why should I think about Equity Release?
You may wish to pay off an outstanding mortgage or other debts, or you might want to top up your income in retirement to help with day to day living costs. Members of your family may need some assistance. Some clients may want to use part of the funds towards; a dream holiday or might need to replace a car. These are just some of the reasons why you may wish to look at Equity Release.
Taking out an Equity Release is a lifetime commitment and so should only be entered into after careful considerations and investigation of other options available.
Do I qualify?
If you live in the United kingdom; are over 55 and own your own property worth more than £70,000, then one of our experienced advisers can quickly tell you whether you may be eligible.
Types of Equity Release scheme
There are two main types, lifetime mortgages and home reversion plans. Hansells can advise on both and show you the benefits and disadvantages of each type:-
A lifetime mortgage
This allows you to release tax free cash from your home whilst continuing to live there. The loan is repaid at your death or if you go in to long term care. Hansells only use providers who are members of the Equity Release Council which means that you will be protected by the “no-negative equity guarantee” which simply means that you will never owe more than the value of your house. You will be able to have the lifestyle that you want with no commitment to monthly repayments.
Home reversion Plan
This plan means that you sell all or part of your home for a discounted lump sum. There is no interest to be paid and the share you still own can benefit from a rise in prices. It is generally less flexible than a Lifetime mortgage.
Can I move home?
Hansells only use Equity Release providers approved by the Equity Release Council. One of their criteria is that the Equity Release must be fully portable but you should be aware that there will be additional charges incurred if you wish to do so.
Can I release equity in my property if I have an existing mortgage?
You can but you will need to clear your mortgage first to allow the Equity Release provider to have a first charge over your property. Equity Release can be used to clear your mortgage.
What about my family?
It is important to remember that you will be reducing the value of your overall wealth by entering in to an Equity Release scheme. This will affect the value of your estate on death and so may mean that members of your family may receive less than they are expecting. Hansells always encourages you to have an active dialogue with your family so they understand the benefits of the scheme to you.
This is only a brief summary. If you have any questions please contact Matthew Hall. Matthew is a specialist in Equity Release, and can also advise on pensions, investments, inheritance tax planning and long term care planning.
Hansells offer a no obligation first consultation meeting whereby we can advise you if we believe Equity Release to be appropriate for you.
|Matthew Hall Dip PFS
Financial Planning Executive
Telephone: 01603 275 829
Hansells Solicitors is authorised and regulated by the Financial Conduct Authority.
Equity released from your home will be secured against it.
Think carefully before securing other debts against your home.