Equity Release

• Lifetime Mortgage
  A Lifetime Mortgage enables you to borrow against your home to receive a lump sum, regular income, or both.
• Interest is rolled up and only repaid when the property is sold—typically after both you and your partner have passed away or entered long-term care.

  Drawdown option: You can access funds in stages, giving you flexibility and ensuring interest is only charged on the amount you actually withdraw.

There are various types of plans available to homeowners aged 55 and over. With Lifetime Mortgages where the interest is rolled up, a loan is taken out on the property to provide a lump sum, an income or a combination of the two. No interest is payable until the home is sold, which could be when you and your partner have both died or gone into long-term care.

A Lifetime Mortgage with a drawdown facility allows you to take the cash in stages as it suits you. This can be useful as it gives flexibility and the reassurance that you can access further funds at some point in the future should you need them. Interest is also only charged on funds when they are drawn down.

Types of Equity Release

•  Lifetime Mortgage
•  You borrow against your home’s value.
• Interest is usually rolled up and repaid when the property is sold—typically after death or moving into long-term care.
• You can choose a lump sum or a drawdown facility, where you withdraw funds in stages as needed.

  Home Reversion Plan

• You sell part or all of your home to a provider in exchange for a tax-free lump sum or regular income.
• You retain the right to live in your home rent-free for life.
• When the home is sold, the provider receives their share of the proceeds.

  Key Considerations

• Equity release reduces the value of your estate and the inheritance you leave behind.
• It can affect your eligibility for means-tested benefits.
• Professional financial advice is essential to determine if it’s the right option for you.

You will normally receive below a below market value for your property, as you retain the right to stay in your home rent-free until you die or move out permanently.

When this happens, your home will be sold and you or your estate will receive the value of your share. The value you receive will be the amount your home sold for, minus the share you sold to the equity release provider originally.

This means you’ll know exactly what percentage of your home’s value will be left to your estate on your death.

Professional advice is essential and equity release isn’t the right solution for everyone. Releasing cash from your home reduces the value of your estate and the amount of inheritance you leave, so you should involve your children and dependants from the outset

Think carefully before securing other debts against your home. Equity released from your home will be secured against it.