There are two types of Equity Release (ER); Lifetime Mortgages (LTM) and Home Reversion (HR). The first involves borrowing money against the value of your home. The second involves selling some or part of your home. What these arrangements have in common is to allow you to remain in your own home of the rest of your life or until you sell your home or permanently go into a care or nursing home. This will of course reduce the value of your estate, and the amount your heirs will inherit. Equity Release and Lifetime Mortgages will reduce the value of your estate and can affect your eligibility for means tested benefits. Equity Release and Lifetime Mortgages have up until recently had a stigma associated with it. The good news is that times are changing for the better. Advice and product transparency, quality and availability is now much improved across the industry. So, this product area can definitely have a legitimate place in asset rich / cash poor people’s (> 55 yoa) financial planning strategy. Releasing equity from our homes can be a valid and very useful financial tool and one that should not to be shunned simply because of historical negative press. If you are thinking about releasing equity from your home and would like to deal with one familiar person who genuinely cares about doing the right thing for you, then get in touch with Alex and find out whether releasing equity from your home is the right thing for you or not. We are a member of the Equity Release Council , click to find out why this matters (Equity Release Council).
Equity Release
The main reasons that people look to release equity from their homes:
Understanding whether it is actually suitable for someone to release equity from their home is perhaps the most important part of the process.
Lifetime Mortgage
Home Reversion Plan
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