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Equity Release

Equity release is available to those aged 55 and over, proving to be a financial lifeline for those living in properties that may be worth hundreds of thousands of pounds but with insufficient income.

More and more people are using equity release to, pay down debts, boost their income, help enjoy a comfortable retirement or plan capital expenditure.

Moving home can be a stressful and expensive process at any age. Many people would prefer to stay put and benefit from the ‘equity’ or value tied up in their homes, and equity release schemes allow them to do that.

There are two main types of plan available to homeowners aged 55 and over, known as “Lifetime Mortgage” and “Home Reversion”. At Courtney Havers, we specialise in Lifetime Mortgages.

Lifetime Mortgage

With a Lifetime Mortgage, a loan is taken out on the property to provide a lump sum, an income or a combination of the two. No repayments are required until the property is sold, either on death, or in the event that the last remaining property owner is required to leave their home and move into long term care. Interest is only charged on the amount of the Equity Release sum withdrawn and continues to roll up on a monthly basis, therefore increasing the amount of the debt that you owe each month over the life of the plan. It is possible to make repayments to cover some or all of the interest that is charged, so you can control the amount of debt that is secured against your property

A Lifetime Mortgage with a drawdown facility allows you to take the cash in stages, as and when suits you. This gives flexibility and the reassurance that you can access further funds at some point in the future, should you need them. It is more cost-effective, as interest is only charged on funds when they are drawn down.

ERC

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.