Equity Release Options Available
This is the most popular option, where you get a tax-free lump sum loan from your home. You continue to own your home, but interest is applied on the loan and will need to be repaid after your death or on entering long term care.
Drawdown Lifetime Mortgage
Just like the Lifetime Mortgage, you continue to own your home after you release money from it. Again interest will be applied and will need to be repaid. However, here you have a little more flexibility. You can release money over time as and when you need it, instead of in one big lump sum.
Home Reversion Plan
This type of plan is different from a Lifetime Mortgage as you give up the ownership of some of your property for a tax-free lump sum. Typically you have to be age 55 or over to take out this kind of plan. You still get to stay in your property, and you don’t have to pay any rent to the lender.
Equity Release will reduce the value of your estate and may affect your entitlement to means tested benefits and tax status.
You are strongly advised to register a lasting power of attorney to mitigate the risks associated with managing financial affairs in the event of cognitive decline.
WE ARE NOT AUTHORISED TO PROVIDE ADVICE FOR EQUITY RELEASE PRODUCTS. THIS WILL BE PASSED TO A SUITABLY QUALIFIED AND AUTHORISED SPECIALIST. TO UNDERSTAND THE FEATURES AND RISKS ASK FOR A PERSONALISED ILLUSTRATION. AN EQUITY RELEASE PRODUCT WILL REDUCE THE VALUE OF YOUR ESTATE, WILL NOT BE SUITABLE FOR EVERYONE AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFIT.