Independent financial advice on Equity Release
For a variety of personal reasons, many people find they need to boost their finances but don’t want to take out a loan. If you have owned your home for long enough and meet certain criteria, equity release could be the solution you need to unlock some of your wealth.
Equity release is a way of releasing wealth, in the form of a tax-free lump sum, from your home – without the need to move or downsize.
In order to do this, you need to have built up enough equity in the first place. You must be between 55 and 95 years of age, and own a property worth a minimum of £60,000.
In most cases of equity release, there are no monthly repayments to make; the most common schemes are mortgage-based products secured against your home and repaid when you die or go into long-term care.
Every year, interest is added to the amount you owe. This will reduce the remaining equity in your home. If you live a long time or house prices fall, there may be no equity left for your heirs to inherit.
Why use equity release?
Equity release is used for many different purposes. You can choose to spend the money how you wish, but the most common uses are:
- Clearing existing mortgage and debts
- Home improvements
- Boosting income
- New car
- Care costs
- Financial peace of mind
Popular methods of releasing equity
You release a lump sum from the value of your property, whilst maintaining 100% ownership of your home. This amount, plus any interest accrued, is repaid from the sale of your property when you pass away or move into long term care.
Interest-Only Lifetime Mortgage
This is like a standard lifetime mortgage. However, you make regular payments so that the amount you owe remains constant. This amount would then be paid from the sale of the home, typically once you have passed away.
Drawdown Lifetime Mortgage
This is similar to a lifetime mortgage, but with added flexibility. The cash can be released over time, as and when you need it. Because you accrue interest on the funds only once you have taken them, this can reduce the amount you pay over time (when compared with a lump sum).
Choose the right equity release scheme for you
To ensure you get the most benefit from equity release, it’s really important you choose the best plan to suit your individual needs and circumstances. Solent Financial Services can explain each option to you. We are fully independent which means we can find the most suitable plan and provider for you.
A no-obligation service
We offer a full planning service and take time to understand your needs, providing you with a full written equity release recommendation.
There’s never any obligation on your part, and if we think equity release is not suitable for you, we’ll tell you straight away.
We are happy to visit you at your home at a time that is convenient to you.
Equity release is a lifetime mortgage. To understand the features and risks, ask us for a personalised illustration. To see some examples of equity release stories please visit our testimonials page