What is Equity Release?
Equity release essentially allows you to tap into the equity tied up in your properties value, doing this will grant you a lump sum of cash but will lower the amount of equity in your home. Equity Release could, therefore, be an excellent choice if you’re worried about your retirement income and need a financial boost.
With some Equity Release schemes, you aren’t required to make any monthly payments, once you have the money you can spend it on whatever you want from boosting your retirement fund, to helping out the family, home improvements or how about that holiday you’ve always dreamed about.
Below we summarise equity release with some simple, easy to read bullet pointed facts.
Facts about equity release
- How you spend the tax free money is entirely up to you
- There’s no charge for the initial consultation, and it’s completely free of charge. A fee will only be charged in the event of an Equity Release plan being applied for.
- To qualify you must be within the age bracket of 55 and 95 years of age and have a property valued £60,000 or higher/li>
- With certain types of equity release plans you can guarantee an inheritance
- Similar to a traditional mortgage, a lifetime mortgage is secured against your property
- Taking out an equity release plan will reduce the value of your property as well as impacting your entitlement to state benefits
- When you take out a lifetime mortgage scheme your property still remains entirely yours