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News Equity Release – What Are The Types Available?

Equity Release – What Are The Types Available?

By Mark Gregory on the 9th August 2010

Obtaining money through your house that has capital value is known as equity release. The percentage of cash to be received depends on the age of the person. The older the person, the greater the percentage. A person aged 55 years or over qualifies for this scheme. The maximum release that is available at age 55 is 19% of the property value.

This amount can assist in securing a person in their old age. The key benefit of an equity release loan is that a person can still own their property while enjoying its value.

The two main types of equity release are:

Lifetime mortgages

A lifetime mortgage is a scheme where you receive tax free cash by taking a secured loan on the property. The cash is paid usually by lump sum. However, there is also an option to take a regular income by the borrower. This loan is repaid to the lender after the person dies or moves into care by selling the mortgaged property. You can release 19% to 50% of your property’s current value, dependent upon age.

Home Reversion schemes

With Home reversion schemes, the property owner needs to sell a part or all of the property to the reversion company. If the borrower wants, he/she can sell the whole property. The money is paid to the borrower dependent upon the percentage of the property sold. For example if the reversion company takes ownership of 50% of your property, then after your death they will still retain 50% of the sale proceeds.

Equity release is a beneficial scheme that makes proper use of your assets in retirement.

To establish whether equity release is right for you please call on freephone 0800 678 5159 or visit the Equity Release Supermarket website at

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Tags: Home Reversion Schemes, Equity Release, Lifetime Mortgage, lump sum

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