Equity release is a plan which allows the homeowner to release some amount of cash against the value of their home. If you are over 55 and own a home worth more than £60,000 then equity release is an ideal solution for you. Although you receive money against your home, there is no need to move & no monthly payments.
The amount of cash which you can release against your property depends on the age of the youngest person on the deeds and the current value of your property. To find out how much you can release, you can use the online calculator.
You can ascertain the maximum release possible by using the equity release calculator &clicking here.
One of the best things about equity release is that it offers tax-free money. This means that you can use all of this cash in whichever way you want.
Due to different financial needs, two different formats of equity release schemes have been introduced:
- Lifetime mortgage schemes
- Home reversion plans
The above mentioned schemes offer different features, so you can opt for the one which suits your requirements. Lifetime mortgages are further categorised into different types such as roll up mortgages and interest only mortgages. Roll up mortgages are preferred by most homeowners these days & account for approx 90% of all equity release plans completed.
Roll up lifetime mortgages
By opting for this equity release scheme, you can keep a lump sum and forget about any monthly the repayment. The best thing about this scheme is that the interest is compounded year on year and paid eventually by selling the property.
The process of releasing equity is complicated, so it is recommended to equity release expert, such as a member of the Equity Release deptartment who will guide you in choosing a right option.
To discuss equity release & its implications, please contact Mark Gregory on 0800 678 5159.