Equity Release

Lifetime Mortgage

A lifetime mortgage is a type of loan, secured against your home, which allows you to release a cash lump sum (or, with some plans, take smaller amounts as and when you need them) from the value of your property.

You remain able to live in your homeYou retain ownership of your home and can still benefit from any house price increases, although you still remain responsible for its maintenance.  The interest accumulated on the loan can be significant and will reduce the value of your estate.

No regular repayments With most lifetime mortgages, there are normally no regular payments to make and
nothing has to be paid back until the end of the plan. This usually happens when the last plan holder living in the property dies or moves into long term care.

There may be an early repayment charge if you decided to repay your mortgage early. One of our advisers will explain this in detail.

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Home Reversion Plan

Home reversion plans involve selling part or your entire home to a home reversion provider in return for a cash lump sum, which is usually higher than the sum you can raise from a lifetime mortgage.

You remain able to live in your home Whilst all or part of your home will belong to someone else, you can remain living there for the rest of your life rent-free.

No interest to pay A home reversion plan is not a loan and so there’s no interest to pay. However, if your property increases in value, you will only benefit from the increase in value of the proportion you still own. Conversely, the plan will reduce the remaining equity you have in the property by the amount sold. You will not benefit from any increase in property value for the share that is owned by the home reversion company.

When you die or move into long-term care, the property will be sold and the reversion company receives its share of the proceeds.

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Enhanced Lifetime Mortgage

If you are looking to release the maximum amount of cash from your home you may wish to see if you qualify for an enhanced lifetime mortgage.

An enhanced lifetime mortgage is a form of equity release that could allow more cash to be released from your property than a standard lifetime mortgage, depending on lifestyle and medical factors that are taken into consideration.

Who qualifies?
You could qualify if you have one or more of these health or lifestyle issues:

  • smoking
  • overweight
  • high blood pressure
  • diabetes requiring tablets/insulin
  • a medical condition such as angina, heart attack, cancer, multiple sclerosis or Parkinson’s disease
  • retirement due to ill health.

There are also other health and lifestyle factors that could qualify, some of which could allow a larger amount of cash to be released – you can find out more about qualifying conditions from our advisers.

You remain able to live in your home It’s important to note that you retain ownership of your home and can still benefit from any house price increases, although you still remain responsible for its maintenance.

No regular repayments There are normally no regular repayments to make and nothing has to be paid back until the end of the plan. This usually happens when the last plan holder living in the property dies or moves into long term care.

There may be an early repayment charge if you decided to repay your mortgage early. One of our advisers will explain this in detail.

Link---Apply

 

We encourage you to discuss your situation As equity release is a lifelong commitment we recommend you involve your family in the decision making process as releasing money from the home will affect the amount that you will be able to leave them when you die.

Helping you decide
Call us, advice is with no obligation. There will be a fee of £749 for advice and arranging an equity release plan we recommend. This fee is payable on completion.

 

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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