Equity Release Companies

Equity Release Companies

Equity release companies are companies offering specialist equity release solutions for all individuals seeking to secure their long term financial future, living within the UK. Equity release products are most certainly not for everyone, but individuals looking to secure their long term financial future whilst seeking extra help to cover their day to day living costs, help pay for residential care for an individual, help out family or alternatively to help fund a once in a lifetime holiday, equity release companies can help individuals obtain the finance required. With the help of our advisers, individuals will be able to hold further negotiations with the most affordable equity release companies.

Individuals seeking equity release companies should however, give considerable thought before looking to any equity release companies for financial help. Alternatives such as moving into a smaller home and scaling back, seeking financial support from family and friends or alternatively seeking a grant for home improvements from the Home Improvements Trust could all be more suitable long term financial policies for individuals. However, if after considerable thought the support of equity release companies makes financial sense, there are a number of mortgage products available for individuals.

Equity release companies typically offer two main mortgage products in the form of lifetime mortgages and home reversion mortgage plans. There are a number of different conditions associated with each equity release product and different equity release companies will only offer certain equity release products.

Lifetime mortgage plans enable the occupant of the property to retain full ownership of their property and live without immediate charge in their property until death or moving into a residential care home. An interest only lifetime mortgage enables a borrower to not need to pay the full loan until the end of their life; however, interest rates are paid monthly and are available on a fixed or variable rate basis. In addition, the interest rollover lifetime mortgage option is also available to individuals seeking the services of equity release companies. Interest rollover schemes see the borrower not need to pay any sum of money until their death; however the interest is calculated and is added onto the total debt of the loan in a product not suitable for younger equity release seekers within the UK. Home income plans are also available for a number of individuals typically over 80, enabling the plan holder to obtain a fixed income for life and to ease the day to day running of their lives.

Home reversion mortgage plans are also available through specialist equity release companies. These plans are available on a full home reversion or part home reversion basis and work on a sale and leaseback basis. The individuals sells their home to a specialist company, only for the specialist company t then lease back the property to the initial homeowner on a nominal rent basis until death. Once the plan holder dies, the home reversion will sell the property and retain their share of the proceeds. Home reversion equity release companies will not accept all properties however and are generally picky on what property they choose to invest in. Properties with a low value or ex council houses are unlikely to be accepted, with the individual expected to keep the house in excellent care throughout their tenant occupancy to enhance the selling on of the property post death. Our team ensures to find an equity release scheme, which will benefit the individual and their inheritors.

Although equity release companies can offer fantastic financial solutions for certain individuals within the UK, it should be specifically noted that equity release schemes are certainly not for everyone. The help of an independent financial adviser and a solicitor will often be required in the process of dealing with equity release companies, with an unbiased client first approach offering ethical advice vital to obtaining the most suitable and affordable long term financial deal for both the potential plan holder and their family. Considering that this plan is likely to leave a burden on the inheritance left by the individual on death, all plans should be carefully thought through and discussed widely with parties involved in the individual’s will. We guarantee to find the most suitable, competitive and cost effective equity release scheme for the individual.

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This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.