If you are aged 55 years plus, and your main residence is a mortgage free property in the London area, you may be eligible to access an equity release scheme.
Equity release schemes vary slightly, depending on their type, but all provide a way for qualifying homeowners to tap into the equity on their property without having to sell or move out.
Overall, they are a solid and straightforward way to make use of the value tied up in bricks and mortar without having to give up your home. Having a financial cushion to draw on can make all the difference to your lifestyle, both before and during your retirement.
As there are several types of scheme to choose from it is wise to seek independent advice and information from specialists before making any major decisions, something our expert London Equity Release Team are happy to provide. They are able to find and explain the options which are best suited to your situation and lifestyle, and as all schemes suggested are operated by members of the Equity Release Council & regulated by the Financial Conduct Authority (FCA) you can browse with confidence.
Choosing the Best Equity Release Scheme
Neutral advice is essential as there isn’t any particular scheme which suits all needs. Some people prefer to have a lump sum of cash they can take away and use as they choose, while others find the idea of re-mortgaging suits their needs better.
Types of Equity Release Schemes
Don’t be misled by the term ‘mortgage’ as this very popular equity release scheme doesn’t involve making regular payments back to a lender. Instead a cash sum is made available to the owner(s) based on the property being held as security.
Available in a few different formats, the underlying principle of a lifetime mortgage is that the homeowner retains the right to reside in the property, with the lump sum received being paid back from its sale when the final living owner passes away.
– Regular lifetime mortgage [aka home reversion plan]
The most well known way to release equity in your home, this provides the owner(s) with a cash lump sum and no repayments at all in their lifetime.
– Enhanced lifetime mortgages
An option which releases a greater than usual percentage of tax-free equity in the property, depending on the applicant’s age and lifestyle.
– Drawdown lifetime mortgages
The homeowner can choose how much equity to access, and when, up to a total agreed with the provider chosen.
– Interest only lifetime mortgages
Operates like a regular lifetime mortgage in providing a cash lump sum, but monthly interest payments, (full or partial), are made in order to control, or reduce, the final total owing from the estate one day.
Find Out More
If you would like to get more information about any of these schemes which could help shape your retirement experience, London Equity Release team members can help.
Get in touch with the London Equity Release team using the form on our home page.
Always take your time to make decisions which involve securing any kind of debt against your home. Defaulting on debts involving agreed repayment terms could mean your home being repossessed.