Home Equity Release

Home Equity Release

Home equity release refers to a specific equity release scheme, for individuals over the age of 55 who seek extra financial income, in exchange for shares to their current property. The arrangement guarantees the individual lifetime occupancy within the estate. By contacting our team of specialist advisers, our clients will receive professional opinions on whether a home equity release scheme is an advisable and cost-effective option. We will together with our clients to find the most suitable home equity release solution to meet their individual needs and requests.

By choosing a home equity release plan, individuals will obtain a lump sum of money which will fund an annuity. By obtaining an annuity, the individual will receive a consistent income for the remainder of their life. This income can be used to contribute to financial difficulties, or could be used to achieve personal dreams and aspirations. No monthly repayments are required by the plan holder. In return, the home equity release provider gains shares in the plan holder’s house.

When the plan holder dies, the house is put up for sale on the market. A full home equity release scheme entitles the provider to all shares within the plan holder’s property. The provider therefore is authorised to keep the proceeds from the sale of the property. On a part home equity release scheme, the plan holder still retains a certain proportion of shares in the property. Therefore, the plan holder’s inheritors are entitled to a certain percentage of proceeds from the sale of the property. Our advisers are specialised in providing detailed information on home equity release.

There are many positive aspects to consider with home equity release plans. One advantage is that the money generated by the plan holder can be used to his/hers own intentions as no monthly payments are required. Also, there is no uncertainty among the plan holder’s position in the future. The plan holder is guaranteed lifetime occupancy and knows the status of the house after death. Part home equity release plans may enable future beneficiaries to benefit from the proceeds of the sale of the property.

However, limitations associated with home equity release plans include the plan holder’s inability to partake in future investment of their property. Regardless of whether the scheme is a full or part home equity release scheme, it is certain that the property will be sold after the plan holder dies. Furthermore, the untimely death of the plan holder shortly after the arrangement has been finalised, may prove to be a costly procedure. It would also be very unlikely that the plan holder would be able to move house after the arrangement has been made.

Home equity release plans may not be a practical solution for many individuals seeking extra income or capital. Home equity release schemes effectively enable a home owner to conceive ownership of their property to the home equity release provider, thus preventing the plan holder from leaving their estate to their inheritance. With the aide of our skilled advisers, we hope to assist you in choosing the correct home equity release scheme, based on your personal and financial needs.

If you have any queries regarding home equity release, or are interested in arranging a suitable scheme, please call one of our specialist advisers today.

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

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.