Equity Release. Is it the right choice for you?

Equity Release handsFor many of us, our home is our most valuable asset. If you are over the age of 55 then it can be a way to access the equity tied up in it and have more cash to spend on everyday living and enjoyment.  There are currently two equity release options:

Lifetime Mortgage.

This is a type of mortgage where you can either take a lump sum or take smaller amounts over time, up to the limit agreed with the provider.

Interest is charged on the amount taken out and this is normally repaid when you die or if you sell your home. The debt, including the interest, is then repaid from the proceeds of the sale of the home.

With some schemes you can elect to meet some or all of the interest while living in the home, thus slowing down or stopping the debt increase.

Home Reversion Schemes

These differ from Lifetime Mortgages in that you sell all or part of your property (for less than the market value) to the provider in exchange for a lump sum, a regular income or both. The reversion company then grants you a lifetime lease on your home, which means you enjoy the right to live in it for the rest of your life (sometimes subject to costs such as ground rent).

When your home is eventually sold, the company will get a share (dependent upon the amount sold to them) of the proceeds of the sale.

You may wish to discuss this with your family as any equity release scheme will affect the amount of money you will be able to leave to your beneficiaries. Releasing equity may affect your entitlement to claim state benefits. Equity Release is not suitable for everyone so we recommend you seek advice prior to making a decision.

How we can help you with Equity Release.

At Anstee & Co we have experienced advisers who can help guide you through the complexities and key requirements of equity release which may affect you. To understand the features and risks of an Equity Release Scheme, ask for a personalised illustration. We will discuss your payment options with you and confirm the actual amount payable before we begin to provide you with our services. Our fee would typically be £695.00

How we can help you with Equity Release.

Why not contact us today to see if Equity Release is right for you.

2018-02-21T15:50:26+01:00 December 4th, 2017|News|