Home Equity Release

Equity release may impact the size of your estate and it could affect your entitlement to current and future means tested benefits.

Home equity release. You can take the money you release as a lump sum or in several smaller amounts or as a combination of both. The catch is that the income provider must be repaid at a later stage usually when the homeowner dies. Equity release refers to a range of products letting you access the equity cash tied up in your home if you are over the age of 55. With a lifetime mortgage you continue to live in and keep ownership of your home.

Thus equity release is particularly useful for elderly persons who do not intend or are not able to. Your estate is everything you own including money property possessions and investments. The loan is secured against your home and interest is charged on the amount but nothing has to be paid back until you pass away or choose to sell your home. Types of home equity release lifetime mortgage including drawdown plans a lifetime mortgage is a way of borrowing money against a proportion of your home s value.

If you re facing a pension shortfall or need to meet an unexpected expense equity release can seem attractive. Equity release may involve a lifetime mortgage or a home reversion plan. Equity release schemes allow you to access your property s value for more cash in retirement but equity release is an expensive lifetime commitment. You don t need to have fully paid off your mortgage to do this.

Key equity release s free advice could potentially save you 1 907 equity release council autumn market report 2019 average lump sum initial advance in h1 2019. You can do this via a number of policies which let you access or release the equity cash tied up in your home if you re 55. Equity release reduces the value of your estate and the amount that will go to the people named as beneficiaries in your will. Lifetime mortgages and home reversion plans.

Equity release is in a nutshell a way to unlock the value of your property and turn it into cash which lets you access or release the equity cash tied up in your home if you re 55. Equity release is available to uk homeowners aged 55 or over with properties worth at least 70 000 and comes in two types. Based on whole of market. Equity release is a means of retaining use of a house or other object which has capital value while also obtaining a lump sum or a steady stream of income using the value of the house.

The most popular type of equity release is a lifetime mortgage which is a loan secured against your home.