Equity Release

Are you looking to unlock the value of your home?

Equity release allows those aged 55 and over to release cash from their home without having to leave.
Usually, the older you get, the more you can release. You can either take out the money you release as a lump sum or, in multiple smaller amounts, or as a combination of both.

There are 2 main types of Equity Release. Lifetime mortgages & home reversion schemes.

  • The most common type of equity release is Lifetime Mortgages. Lifetime mortgages are a type of equity release that lets you release tax-free cash from your property value. You’ll get a long-term loan that’s designed to last for the rest of your life, giving you real peace of mind. This type of loan usually doesn't require repayments during your lifetime, and the interest is simply added to the balance of the mortgage.
    There are certain conditions that you must meet to qualify for a lifetime mortgage. You will remain the owner of the property.

  • This is where you sell your property (or part of it) for less than the market value. You then remain in the property as a tenant without having to pay rent but you have to agree to maintain and insure it. Some home reversion mortgages will give you a lump sum, while others give you regular income. When you die or move into long-term care, your property is sold and the lender takes their share.

Important points to consider about Equity Release

With a lifetime mortgage, you need to consider the effect of interest charges on the amount you owe. Unlike a traditional mortgage, which you have to repay over the mortgage term, the interest period on a lifetime mortgage is an open-ended mortgage and ends only when you pass away or move into long-term care.

An average interest rate on lifetime mortgages is relatively higher than for an ordinary repayment loan. This means that the debt builds up faster, especially if you are rolling up the interest rather than paying it off.

Whereas, with a home reversion mortgage, you should be mindful that if the value of your home doubles, so does the share of the mortgage provider.

Who is eligible to get an equity release?

  • For a lifetime mortgage, you and your joint borrower should be at least 55 years old.

  • For a home reversion plan, you and your joint borrower should be at least 65 years old.

  • You must be owning a property in the UK, and which should be your main place of living.

  • Your property should be in reasonable condition and over a certain value. Plus, there could be certain restrictions on the type of property accepted.

  • If you already have a mortgage or secured loan on your property, you may still qualify for equity release, but it will depend on the value of your home and the outstanding amount on the existing mortgage or loan. You will have to clear any outstanding mortgages or loans secured against your property at the same time as taking equity release.

  • Any dependents living with you may be required to sign a waiver confirming that they understand they don’t have the right to live there if you die or move into long-term care. It is advisable that they seek independent legal advice.

Some Reasons Why People Release Equity

  • Clear existing credit cards and loans

  • Enjoy more holidays & other leisure activities

  • Home Improvements and Renovations

  • Paying off an existing mortgage or debts

  • Gifting to the family and your loved ones

  • Buying a new car or any other vehicle

How Does The Equity Release Process Work?

Get Advice on Equity Release

Following a FREE initial consultation, one of our qualified team will discuss your options with you and your family.

Thereafter a specific recommendation will be made based on your personal requirements.

Application

Your Adviser and Case Manager will work together to collate any necessary information and make an application..

Valuation

The lender will arrange a valuation on your property to confirm the current value and that is suitable security.

Should your property not achieve the estimated value, your adviser will discuss the implications with you.

Offer

Once the application has been formally approved an offer will be produced.

On completion, your solicitor will advance any surplus funds after any existing mortgage has been cleared.

Equity Release Questions

  • There are many reasons why people release equity from their property. They include, but are not limited to:-

    Repaying existing mortgages that have come to the end of their term

    Home Improvements

    Helping children or grandchildren get on the property ladder.

    Repaying outstanding debts

    Educations costs for loved ones

    Special adaptions to your property

    Holidays

  • There is no upper age limit for equity release. However, different lenders have different criteria.

  • The minimum age is usually 55 years old. That is why you may see some scheme termed (over 55s)

  • If the mortgage is in your name only, your house will be sold and the loan plus interest is repaid. Any money left over can help pay the costs of your care.

    If the mortgage is in joint names, you and your partner can live in the house until the last person passes away or moves into a care home permanently. Then the house is sold. Any money left, after the loan and interest has been repaid, can be used to pay for or towards any care costs.

  • A lifetime mortgage is a type of equity release.

  • The amount you can borrow will depend on the following factors:

    Your age

    Your health

    Value of your property

  • Rates vary from lender to lender and change on a regular basis.

    Your personalised quote will be based on your circumstances and requirements.

  • With lifetime mortgage and retirement interest-only mortgages we offer, you will remain the legal owner of the property until it is sold or once all owners have either passed away or are in long-term care.

  • Yes, you can involve your children, future beneficiaries, or anyone that you would like in the lifetime mortgage process and we would actively encourage it.i

  • You can opt to receive the money in a lump sum. Alternatively, you can set up a cash reserve and draw that down when required subject to the lender’s terms and conditions.

  • Yes, there could be an impact on welfare benefits by unlocking the equity in your home via a Lifetime Mortgage. The implication of this should be considered before any decisions are made.

  • It is important to note that releasing equity will reduce the size of the inheritance you leave to your loved ones and may have an implication on welfare benefits. This is because interest builds up throughout the life of the loan. It is important to speak personalised advice depending on your own requirements and needs from a suitably qualified adviser.

  • Meetings can be arranged in Southend-on-sea. Alternatively, we can also arrange meetings in person, over the phone or via Zoom.

  • Equity release advice and lending are fully regulated by the Financial Conduct Authority in the United Kingdom.

    Our Equity Release Advisers are fully qualified and hold the Certificate in Regulated Equity Release (CeRER) obtained via an examination set by the London Institute of Banking and Finance.

  • An equity release broker can facilitate arranging a loan with an equity release lender. Typically a broker would have access to more than one lender.

  • A drawdown facility allows you to take cash out of your property at different stages. For example, you may have an immediate need for a certain amount but would like to be able to draw down further amounts in the future. A pre-determined facility would allow you to do so.

  • Yes, home improvements are a common reason for equity release.

  • Some alternatives to equity release include:-

    Downsizing to a smaller property

    Speaking to family members and loved ones for assistance

    See if you are eligible for any grants or benefits.

    Consider other forms of borrowing like loans or credit cards.

  • Yes, subject to the amount you are able to raise is sufficient to clear your outstanding loan and meet lenders’ criteria, terms and conditions.

  • The loan is repaid once you pass away or move into long-term care.

  • Most lenders allow you to move your loan to another property subject it to meeting their terms and conditions.

  • Yes, this is an acceptable reason for most lenders.

  • Equity release could impact the value of your estate. In addition, it could affect your eligibility for state benefits which are means-tested.

  • It is always advisable to ensure your Will reflects what you would like to happen when you die. If you would like to make a will or review your current arrangement you should seek professional advice from a suitably qualified professional.

  • In the UK, Equity Release is regulated by the Financial Conduct Authority.

  • Yes, there are lenders subject who will consider ex-local authority flats or houses subject to a minimum value.

  • We are not aware of any lenders who would accept this unless the trust is dissolved.

  • Most lenders will accept properties with solar panels if they are owned. If they are leased, the lenders may want to see a copy of the lease.

  • With concrete construction, there are many different methods. Please refer to use with a specific type of construction e.g Laing Easi-form, Wimpy No-Fines, Wates & Woolaway, etc

  • Please refer to us with the date of construction as different lenders have different requirements.

  • Please refer to us with information about when the property was constructed.

  • Potentially. Please refer to us for information about the percentage of the property that has a flat roof.

  • This varies from lender to lender. Please contact us for more information.

  • Holiday homes or second homes may be considered. However, the number of lenders is extremely limited.

  • This allows the applicants to protect a percentage of the future value of their home. This can be useful for those who wish to guarantee an inheritance and are worried about the inheritance they leave for their beneficiaries.

  • A drawdown facility lets you have access to funds in stages rather than drawing it all down in one go.

Would you like to discuss your equity release requirements?

Book your FREE, no-obligation initial consultation

A lifetime mortgage is a loan secured against your home Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

You should always think carefully before securing a loan against your property