Grow Newsdesk | May 13, 2020 | 1
Is Equity Release Right For Me?
This month, Wyatt Loake, Financial Services Manager at Gilbert Stephens Financial Services, talks to us about equity release.
From the age of 55 you can consider releasing equity from your home. This is a way of freeing funds that are tied up in your residential property to supplement pensions or make home improvements.
You can take the money you release as a lump sum, in several smaller amounts or as a combination of both.
There are two main options for equity release:
- A Lifetime Mortgage is a type of remortgage. There are usually no repayments to make while you are alive, so interest ‘rolls-up’ and is taken back from the sale of your property after death or should you move into long term care. Debt can increase quite quickly in this case.
- Home Reversion is when you 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 rent free, but you have to maintain and insure it. The percentage you retain will always remain the same even if the property value changes.
Both of these options will vary depending on the lender, but it is usually possible to ring fence a certain amount as inheritance for your family.
If you are interested in equity release and would like to talk to an expert about your options, get in touch with Wyatt Loake on 01392 346464 or email firstname.lastname@example.org. A Lifetime mortgage may reduce the value of your estate and may affect any entitlement to state benefits. To understand the features and risks, seek advice and receive a personalised illustration.