Equity Release
Equity Release mortgages can enable you to make repairs to the house, pay down debts or simply provide you with more freedom and a better standard of life in your later years.
If you are in your mid 50's or older you might have paid a substantial amount off your mortgage, or be close to doing so. The value of your home may have risen considerably since you bought it, but you might still be short of money to spend, invest or even pay your standard mortgage off.
Equity Release is a way of raising money from the value of your home.
When the “equity” value in a home is released on the householder trading down to a smaller property, the cash which is realised could be used to provide additional income, to fund a major item of expenditure, or to provide a gift to a relative. But the same options can be available even without the property being sold, if the householder uses an “Equity Release” plan.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Is Equity Release for you?
In the right circumstances releasing capital from your property through an Equity Release scheme can be an ideal way of raising money. However, it will not suit everyone and it is important to seek independent financial advice before making any decisions.
Generally suitable for
Equity Release schemes can be beneficial in the following circumstances:-
1. People aged 55 and above.
2. Consolidating existing debts whilst not having to make any monthly repayments.
3. People who are happy to leave part of their home to their loved ones on death.
4. Helping children or family members with financial problems.
5. Boosting your income in retirement.
6. Raising money for that holiday of a lifetime or to help with home improvements.
7. Inheritance Tax Planning.
8. Moving to a more expensive property such as a bungalow for those with concerns on their mobility.
Not generally suitable for
However, Equity Release will generally not be suitable in the following circumstances:-
1. People under the age of 55
2. People who receive means tested benefits as these could be lost if you release money from your property. Although the drawdown schemes can allow applicants to keep any savings below the level that would affect their benefits.
3. People with substantial savings as it is better to use any savings before considering an equity release.
4. People who want to leave the full value of their property to their loved ones on death.
If you feel you feel you fall into the beneficial categories, why not find out more?
Contact us today for a free initial assessment.
Contact us today for a free initial assessment.
Equity Release Plans
If you take out an Equity Release plan, you can choose to receive your funds in a lump sum or in smaller, regular amounts.
We can look at all your options for releasing a part of the value of your home in return for a cash lump sum, or income to spend as you wish. There are advantages and disadvantages in both types of plans so it is important for you to find out as much as you can, to get qualified advice and, if possible, to talk it over with your family to ensure you choose the best plan to fit your needs.
Let us offer you a free initial consultation to discuss your financial objectives. Explain what we do and to obtain information about you that will allow us to establish if we can assist you and indeed that you want our assistance.
Equity release will reduce the value of your estate and can affect your eligibility for means tested benefits.
Equity release may require a lifetime mortgage or home reversion plan. Steve Davies Independent Mortgage Services Ltd are not authorised to advise on Home Reversion Plans. To understand the features and risks, ask for a personalised illustration.