Equity Release allows those aged at least 55 to use equity within their home to provide a lump sum, income or a combination of both.
This allows you to release a lump sum from your property, whilst retaining ownership of your property. This may involve either the payment of interest or interest being rolled up. Where interest is rolled up it will be on a compound basis i.e. in year two interest is due on the initial advance and the interest from year one. Both the amount you draw plus the interest are payable from the sale of the property.
This is similar to a Lifetime Mortgage, however, you release the money as and when you need it. This means that the interest only becomes payable as you release the funds.
This is a standard of the equity release council. essentially, it simply ensures that the debt will never be more than the full value of your equity – your estate will never be left with a debt greater than the value of the property at the time of death or entering permanent long term care.
Guarantee inheritance – available with certain lifetime mortgage contracts, allowing you to guarantee a percentage of the property value at death. essentially, it builds in an equivalent to the no negative equity guarantee but at a percentage of the property value lower than 100%. i.e. with a 20% inheritance guarantee your estate will never be left with a debt greater than 80% of the property value allowing the other 20% of value to be passed on to your beneficiaries.
This is a lifetime mortgage to understand the features and risks please ask for a personalised illustration.
Lifetime Mortgages can quickly erode the remaining equity and as a result there may be no value left to pass on.
There may be a fee for Equity Release Advice. We will confirm this before any fees are incurred and this will be a maximum of £995