What is Equity Release?
The value of your home, less any mortgage is known as ‘equity’. Equity Release is the name given to a range of financial products that convert a proportion of that equity into cash for your own use.
Equity Release Plans usually have the following common factors:
• Equity Release has a minimum age of 55.
• You receive a guaranteed tax-free cash sum or income for life.
• You continue to live in your home for as long as you wish.
• There are no repayments required until your home is sold. This is normally after your death or entering long term care.
• You have the freedom to move to a suitable property should you wish to do so in the future and transfer your equity release plan to your new home subject to the lenders property criteria.
• Your estate will not be liable for any debt beyond the property value
regardless of future house prices.
This is a Lifetime Mortgage. These are only applicable to those 55 and over, and it could affect eligibility to state means-tested benefits and the inheritance you may leave. To understand the features and risks, ask for a personalised illustration.
