Over 60 Equity Release

Over 60 Equity Release

Over 60 equity release is a mortgage scheme which enables an individual to generate capital or income through the value of their home. Property equity release is accessible to individuals who surpass the age of 60, who are looking for income or capital to enhance to their financial or private needs. Our team of expert advisers search the market for the most appropriate over 60 equity release scheme, related to individual’s expectations.

An over 60 equity release scheme can either be provided in the format of a lifetime mortgage or a home reversion plan. Lifetime mortgages permit the borrower to repay the total debt of the mortgage back to the provider as soon as the contract expires. The agreement will be ended under the circumstance that the borrower dies or has to be relocated to a care home, due to declining health.

Over 60 equity release lifetime mortgages can be conceived in three formats, the first being interest only schemes. Interest only schemes involve the borrower issuing monthly payments of interest to the provider; however, the individual is able to repay the mortgage at the end of the arrangement.  Rollover mortgages enable the client to repay interest together with the mortgage after the contract ends, yet interest is calculated on a monthly basis and added to the mortgage debt. A home income plan enables the borrower to use the generated cash sum to purchase an annuity; providing the client with a consistent lifetime income. The annuity income may contribute to paying monthly payments of the mortgage and interest, which remain at a fixed rate.

Over 60 equity release lifetime mortgages are associated with many benefits, as the plan holder does not lose ownership of their property. Furthermore, equity may remain in the estate after the borrower’s death, making it possible for the borrower’s inheritors to benefit from this increased equity. However, if interest rates were arranged to be variable, additional income may consequence in an extensive debt, hence reducing the equity borrower’s estate. This could be very difficult, especially for younger borrowers, as a higher life expectancy would be a sign of more years for debt to roll up. If you require further advice on the advantages and limitations of over 60 equity release lifetime mortgages, our specialist advisers are able to offer expert advice to all of our clients.

Home reversion plans alternate to some extent when compared to lifetime mortgages. The provider is entitled to a share of the borrower’s property, instead of receiving the full mortgage payment. A full home reversion plan permits the over 60 equity release provider to obtain 100% of the property’s ownership, whilst a part home reversion plan enables the current homeowner to keep a share in their home. As an exchange, the plan holder obtains a lump sum of cash accompanied with a lifetime guarantee of occupancy within the home. The property is typically sold on the market after the death of the borrower.

Home reversion plans are advantageous as the borrower’s certainty on the future of his life, and that of the property. Also, the borrower is immune from making any monthly payments to the over 60 equity release provider, enabling them to use the money as towards their intentions. However, the borrower loses full ownership of their property to the provider, meaning they can not make any future plans for the property.

If you believe an over 60 equity release scheme is the best option to raise capital or income, you must be aware of the risks and limitations concerning each form of equity release. Our specialist advisers are devoted to searching for the most suitable form of over 60 equity release for each of our clients.

For more information on over 60 equity release, contact our specialist advisers today.

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