Equity Release and later life lending
Is releasing cash from your home right for you?
Today, we are typically a cash poor but property rich society. Your home is likely to be your biggest financial asset. It’s often worth much more than any other investments or savings.
However, getting your hands on this cash to pay for renovations, long-term care or retirement is a major step. It requires selling your home, downsizing or releasing your cash in some other way. There are lots of things to consider.
First off you need to understand clearly what’s involved. Releasing equity is simply the process of making the money in your home work for you, either by giving you a cash lump sum or a regular income. There are many options, depending on where you are in life.
Consulting a financial adviser before making any concrete decisions is wise. Borrowing against or selling your home is a long-term financial commitment. Please take advice from Qualified adviser and make sure they are whole of market and not just linked to one company .
Depending on your financial situation, we can help direct you towards the best option:
- Helping you to consider the most appropriate way to generate cash or income;
- Highlighting the risks and real costs involved;
- Illustrating how the value of your estate will decrease;
- Discussing the implications for your family on your death.
If you’re thinking seriously about equity release, we may consider things you haven’t. Why not talk through your ideas and concerns with us today?
We offer a free initial consultation at our offices in Taunton or your own home
‘Equity Release’ includes home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.
A lifetime mortgage allows you to release tax-free cash from the value of your home while retaining ownership. You can choose to receive a lump sum or opt for regular installments. Interest accrues on the amount borrowed, which is typically repaid when you sell your property or upon your passing. Some lifetime mortgages offer the option to make interest payments, reducing the overall loan amount.
Home reversion involves selling a percentage or all of your property to a home reversion provider in exchange for a lump sum or regular payments. You have the right to remain in your home as a tenant without paying rent until you pass away or move into long-term care. Upon sale of the property, the provider receives their share of the proceeds.
When deciding which type of equity release is suitable for you, it’s crucial to consider your specific needs and circumstances.
Our experienced advisors at Heritage IFC will assess your financial goals, health, and age to determine the most appropriate option. We will explain the risks, benefits, and costs associated with each type of equity release, ensuring you have a clear understanding before proceeding.