EQUITY RELEASE

You may want to release equity from your home without the inconvenience of having to move house. If you are over the age of 55 it may be possible to access the cash in your home with products known as “Equity release”. You can take the money you release as a lump sum or in several smaller amounts or as a combination of both.There are usually two available options providing that you meet the conditions:

Lifetime mortgage – if you are over the age of 55 you can take out a mortgage which is secured on your property while retaining ownership. The property must be your main residence. You can choose to ring-fence some of the value of your property as an inheritance for your family. The interest can either be left to roll-up or you can choose to make repayments. The loan amount and any accrued interest is paid back when you die or if the property is sold because you move into long-term care.

Home reversion – if you are over the age of 65 you can sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property until you die, rent free, but you have to agree to maintain and insure it. You can ring-fence a percentage of your property for later use, possibly for inheritance. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.