The most suitable plan for you will depend on a number of considerations, including:
A lifetime mortgage allows you to release a lump sum of cash from the value of your property. There are no regular repayments to make as the amount is repaid from the money made when the property is sold. Generally this is when you pass away, move into long-term care or permanently leave the property. Some plans do allow the flexibility to make repayments within limit should you wish to.
This is similar to the standard lifetime mortgage. However, with the drawdown lifetime mortgage, you can access your money with more flexibility. Rather than just receiving a one-off lump sum, you have the option to release your cash over time, as and when you need it. Because you only pay interest on the cash that you have taken, these plans can often prove to be more cost-effective and at the same time provide peace of mind that there are funds for future needs should they arise.
This is similar to a standard lifetime mortgage, however, you can choose to make repayments of the interest charged thereby maintaining the debt at the original amount and reducing the overall cost and impact on the value of your estate.
This type of plan allows you to exchange the ownership of some or all of your property for a lump sum of cash, along with the right to stay in your property, rent-free, for as long as you live. This is also known as a ‘lifetime lease’.
Whilst most people we speak to feel at home in their property and don’t want to move, you should be aware that there may be alternative options that should be considered such as:
Another way of raising funds from your property could be to take in a lodger although generally this is less appealing due to the invasion of privacy that it brings.
We will only recommend that you go ahead with an equity-release plan if we firmly believe it to be in your best interests.
Please call us today and talk with one of our advisers who will answer any questions you may have.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.
To speak to a qualified adviser about equity release simple enter your details in our Equity Release form.