Equity release schemes help to release equity from your property. The main advantage is you do not lose the ownership of your home when you have received the money.
The two types of equity release schemes available are lifetime mortgages and home reversion plans.
If you go for a lifetime mortgage then you can secure a loan against your property and receive cash that can be spent in any way. You also do not have to worry about monthly repayments. Lifetime mortgages have become popular in recent years and this has encouraged many equity release providers to introduce variations in lifetime mortgages called drawdown plans. With a drawdown plan, you can release equity when you require it instead of taking a lump sum at once.
Advantages of lifetime mortgages
You can retain the ownership of your property and stay in your home for the rest of your life. Some lifetime mortgages provide you with an option to let you protect a percentage of your property in order to pass on a guaranteed inheritance. Click here for further details.
Home reversion plans
With a home reversion plan, you can sell a part of your home or your full property in return for tax-free cash. It also offers a lifetime lease with no monthly payments.
You are allowed to stay in your home without paying any rent as long as you want. If the value of your property increases in future, both you and the home reversion company can enjoy the profits.
For further information on any of these schemes please complete your request here or ring freephone 0800 678 5159.