Equity Release

A way to provide extra cash in retirement to live on
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Equity Release

There are two types of equity release; Lifetime Mortgages and Home Reversion plans. Both of these are regulated by the Financial Conduct Authority. By using an equity release product, a home owner can draw a lump sum or regular smaller sums from the value of their home, while remaining in their home.

Equity release is an important part of the retirement planning tool box and can provide you with extra cash in retirement to live on; or to enable gifts to me made to your children or to enable home improvements to be made to your own property.

However, equity release requires careful assessment of the risks to you and your family’s inheritance and so this should be regarded as a last resort.

Therefore, we are pleased to be able; to provide you with specialist and impartial advice to see if this is potentially right for you.

If you are thinking of taking out an equity release plan then you need to find out as much as you can about your options and weigh up the advantages and disadvantages fully before you decide if equity release is right for you.

This type of Mortgage does not require monthly repayments, although some plans can allow you to pay part or all of the interest in monthly instalments.

You retain ownership of your home and the interest on the loan is compounded. Then both the loan and the interest on it are repaid by your estate when you either die or more into long term care.

If the loan is to you and a partner then the repayment is not made until the last remaining person living in the home either dies or moved into long term care. This means that you are both free to live in your home for the rest of your lives.

With this sort of plan the product provider will purchase a proportion, or all, of your property, taking into account your age and health. This provides you with a tax free lump sum (or regular payments) and a lifetime lease, meaning that you are able to remain in your home rent-free for the rest of your life.

The product provider will not be able to interfere whilst you live in your home and there will be no restrictions set on the way you treat your property whilst you live there. It remains as a private home for you to live your life in.

Please call Mike Brennan on 07833 044804 or email him at mike.brennan@psa-uk.com to discuss further.

The value of an investment will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The level and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depend on individual circumstances.

We are members of the Equity Release Council