Could equity release be right for you? | Personal Finance | Finance

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Make your retirement more comfortable

Homeowners aged 55 and over can unlock the tax-free cash tied up in their homes to enjoy spending once any existing mortgage has been repaid.

The money that you release is tax free and can be accessed as a lump sum or smaller instalments at a later date. With the most popular form of equity release, a lifetime mortgage, you also continue to own 100 percent of your home.

One of the main benefits of equity release for many people is that it provides you with a tax-free lump sum of cash and you’re not required to make any monthly repayments if you don’t wish to.

How much could I unlock?

You could unlock from a minimum of £10,000 up to 58 percent of the value of your property if you’re aged 55 and over and your property is worth at least £70,000. How much you can release is determined by the age of the youngest homeowner and the value of your property.

How does equity release work?

The money that you release, plus the interest that you accrue, is repaid when you die or go into long-term care and your property is sold. There are also now plans that allow you to pay off some of the interest each month and you can choose the percentage that suits you. By paying a percentage of the interest, you can reduce the amount of debt that is being rolled up.

Safeguarding for your loved ones

You may be concerned about passing on debt to your family, but all equity release plans come with a no negative equity guarantee, which means that you can never pass on the debt to your estate, providing the property is sold for a reasonable amount. There are also plans that allow you to safeguard a percentage of your property value so that you can still pass on an inheritance to your loved ones.

How do I know if equity release is right for me?

Speak to an adviser for a recommendation which is bespoke to your individual requirements. The Express Money Equity Release Service is provided by Age Partnership, who are the UK’s number 1 equity release advisor*.

An adviser will also talk to you about alternatives to equity release, such as unsecured lending, downsizing, grants, benefits, taking in a lodger and using savings or pensions. They will also explain the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.

They will also encourage you to discuss your equity release plans with family and friends to see what they think and involve them in the process, as it’s likely to impact them later down the line.

Through the Express Money Equity Release Service, initial advice is provided for free and without obligation. Only if you choose to proceed and your case completes would a typical fee of £1,795 be payable.

* The UK’s number 1 equity release advisor is based on the volume of plans from a panel of lenders Q1 2021 – Q3 2021.

Equity release may involve a home reversion or a lifetime mortgage, which is secured against your property. To understand the features and risks, ask for a personalised illustration. Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long-term care.

Correct at time of publication. The Express Money Equity Release Service is provided by Age Partnership Limited, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Age Partnership Limited is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432 and is trading as Age Partnership. We offer a comprehensive range of equity release products from across the market.





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