Is Equity Release right for you?

Helping clients make an informed decision

There are a lot of things to consider when looking into releasing money from your home and Sue offers expert guidance, helping decide if equity release is right solution for you.

If you are aged 55 and over, you can release tax free money from your home and still have a guarantee you can live in your home for the rest of your life.

Equity Release is an excellent way of releasing tax free money for numerous reasons you could help your children onto the property ladder now, fund travelling (when we can again), it can help fund your retirement and help you purchase a new home.

You may also want to have family or friends involved on your equity release journey.

Making sure you get the right advice

The Financial Conduct Authority requires clients to seek advice when releasing equity from their homes. Sue is a member of the Equity Release Council and in being so promise to abide by their Statement of Principles.

During your meeting, Sue will look at all other alternatives to help you consider whether they are more suitable for your needs. If an area is identified your advisor will then refer you to other specialists for example, if you have a pension scheme to consider or if you want money for care.

It is also important for you to have the right environment when we have our no obligation meeting/s. The most popular options we currently have available to you are face to face, via zoom or telephone appointments.

Face to face is where the meeting is held in your home or other location of your choice to discuss your needs enabling any family members to be present and involved in the decision making process if you require.

Zoom is where the meeting is held via a device which enables us to offer meetings all over the UK. This also enables you to have family members be part of the meeting no matter where they are based.

Telephone meetings can be held when the above options are not available.

Benefits

• You will remain a homeowner, retaining full legal ownership of your home.
• All plans have No negative equity guarantee, you or your estate will not have to pay back more than your home can be sold for, providing it’s sold for the best price reasonably obtainable.
• Flexible withdrawal and repayment options available as well as Interest Roll Up.
• Inheritance Guarantee, you can safeguard a percentage of your home’s value to leave as an inheritance, although this will reduce the amount, you’ll be able to borrow.
• Guarantee to Move, you can apply to transfer your lifetime mortgage to a new property, but this must meet lending criteria. However you may wish to consider a Downsizing Guarantee from the lender.
• 3 Year Guarantee, applies to joint applicants where if one person goes into care or passes away the surviving partner has a 3 year no early repayment charge guarantee.

Risks

• Taking monies from your home will reduce the amount available to your beneficiaries.
• Equity release is a lifetime mortgage commitment and is designed to run for the rest of your life or until you need to go into long term care. If you end your agreement early, then you may have to pay a substantial early repayment charge.
• Releasing equity can change your tax position and potentially alter your eligibility for welfare benefits.
• If you opt for the Roll Up Interest option your interest will build up on a monthly / annually basis, which increases the amount you owe.