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Equity Release London

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Mark Gregory
Checked for accuracy and updated on 23 July 2024

Equity release is an increasingly popular way for homeowners over the age of 55 to release tax-free cash from their home, without having to sell or downsize. If you're considering equity release, it's important to seek advice from a qualified whole of market equity release adviser.

Our team of equity release advisers in London possess a wealth of experience in the industry and can guide you through the entire process, from start to finish. We'll help you understand the different types of equity release products available and recommend the right solution and provider for your individual circumstances.

What type of equity release plans are available in London?

One of the most popular equity release products available is a lifetime mortgage. A lifetime mortgage is a loan secured against your home, which allows you to release a lump sum of tax-free cash, while still retaining 100% ownership of your property. With a lifetime mortgage, you won't have to make any mandatory monthly repayments, as the loan and interest will be repaid when your home is sold, typically when the last homeowner has passed away or moved into long-term care.

Instead however, you can make voluntary payments of up to 10% of the original amount borrowed every year without any early repayment charges. By ‘servicing’ part, or all of the interest will enable you to manage the future mortgage balance – which could benefit you, or your beneficiaries in the long term.

In addition to lifetime mortgage solutions, our industry qualified advisers offer impartial advice on home reversion plans. A home reversion plan involves selling a percentage of your home to a reversion company, in exchange for a lump sum of tax-free cash. You can continue to live in your home rent-free for the rest of your life, until the last surviving partner dies or moves into long-term care.

Alternatively, our advisers have access to Retirement Interest Only Mortgages (RIOs). A RIO is a type of later life residential mortgage that also runs for the rest of your life but allows you to borrow equity that is based on your income and affordability. RIOs do require the interest element to be repaid every month, thus you maintain a level balance during the life of the mortgage.

We offer equity release advice on products designed to suit a range of needs and circumstances, whether you are looking for a lump sum or regular cash payments, fixed or variable interest rates, or other features; we will help you choose the product that best meets your needs and ensure that you understand the implications of equity release before you commit.

Why choose Equity Release Supermarket?

When it comes to equity release, it’s important to work with a provider you can trust. At Equity Release Supermarket, we pride ourselves on our expertise, industry experience, and award-winning service. Here are some of the reasons why you should choose us as your equity release advisory service:

  • Local Expertise: As local equity release experts covering all London boroughs, our experienced advisers have a deep understanding of the local property market and the unique needs of homeowners in the area.
  • Unbiased Advice: Our equity release advisers are impartial, whole of market advisers, meaning they are independent and not tied to any particular equity release provider. This means we can offer unbiased advice and recommend the best product and provider for your needs.
  • FCA Regulated: Equity Release Supermarket is regulated by the Financial Conduct Authority (FCA), meaning all our advisers are fully qualified to provide equity release advice.
  • Equity Release Council Members: Equity Release Supermarket, and all its advisers have been long standing members of the Equity Release Council and also have a valuable presence on its committees and forums.
  • Transparent Fees: We believe in transparency and will explain all fees and costs associated with setting up, and ongoing running costs of your equity release account upfront, so there are no surprises.
  • Personalised Service: We understand that every client is unique and has different needs and circumstances. Your local equity release adviser will take the time to understand your situation and provide bespoke equity release advice.

Frequently Asked Questions

While equity release can provide a number of benefits, it also carries risks that individuals should carefully consider before making a decision.

One of the key benefits of equity release is the ability to access a lump sum or regular income without having to sell your property. This can be particularly advantageous for people over the age of 50 who may have limited pension income or require funds to support their lifestyle or pay for healthcare expenses. Additionally, equity release can provide a sense of financial freedom by allowing individuals to use their property as a source of wealth.

However, there are several risks associated with equity release. Firstly, it can significantly reduce the inheritance that can be passed on to loved ones. Since equity release involves borrowing against the value of the property, the debt plus interest will accumulate and reduce the value of your property over time. Furthermore, the interest rates associated with equity release can be higher than traditional mortgages, dependent upon the loan-to-value taken, which means that the overall cost of borrowing could be higher.

Another risk is the potential impact on means-tested benefits. Releasing equity from a property could affect eligibility for certain state benefits, such as pension credit or council tax support.

Ultimately, before considering equity release, individuals should seek advice from a professional equity release adviser, carefully weigh the potential benefits against the risks, and explore alternative options to ensure that you make an informed decision that aligns with your circumstances and long-term financial goals.

Equity is the difference between the value of your home and the amount you owe on your mortgage, and the amount of equity you can release from your home depends on several factors, namely the current value of your property and the outstanding mortgage balance.

Typically, with a lifetime mortgage, you can release a percentage of the property's value, usually between 20% at age 55 up to around 55% at age 90. This can also be dependent on your health, postcode and your property type in London. Alternatively, home reversion plans, do not incur any interest as it involves selling a portion or all of your property to a provider while retaining the right to live there.

To determine the maximum amount of equity you could release, our FCA regulated equity release advisers will assess your specific situation. They will consider factors such as your age, creditworthiness, location, and the type of equity release product that best suits your individual circumstances and needs.

Choosing the right equity release plan requires careful consideration of your individual financial circumstances and goals.

A lifetime mortgage, for example, allows you to borrow against the value of your home while retaining ownership. You can receive a lump sum or regular payments, and interest accrues on the loan. The loan, including the accumulated interest, is repaid when you sell the property, move into long-term care, or pass away.

A home reversion plan, however, involves selling a portion or all of your property to a provider in exchange for a tax-free lump sum or regular income. You retain the right to live in the property rent-free for the rest of your life or until you move into long-term care. When the property is sold, the provider receives their share of the proceeds.

Our London based equity release advisers will provide valuable, unbiased guidance tailored to your situation, ensuring you make an informed decision around your financial future.

Meet our team of equity release advisers in London

At Equity Release Supermarket, we understand that equity release is an important decision, made at a key point in your life and it can be a complex process. That's why we're committed to providing you with expert guidance and support every step of the way. Our goal is to help you make informed decisions about your financial future and ensure that you're able to enjoy your retirement with peace of mind.

If you're interested in learning more about equity release in London, or you're ready to start the process, contact your local equity release adviser today. We're here to help you unlock the equity in your home and achieve your financial goals.

Our team of equity release advisers in London

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