Equity release refers to a range of products that let you access the equity (cash) tied up in your home if you are over the age of 55. You can take the money you release as a lump sum. You can also take the money in several smaller amounts if you prefer or as a combination of the two.
There are two equity release options:
You take out a mortgage secured on your main residence. You remain the owner. You can choose to set aside some of the value of your home as an inheritance for your family. You can choose to make repayments or let the interest roll-up. The loan amount and any accrued interest is paid back when you die or when you move into long-term care.
You sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property until you die, rent free, but you have to agree to maintain and insure it. You can still set aside a percentage of your property for later use, possibly for inheritance. The percentage you retain will always remain the same regardless of the change in property values, unless you decide to take further cash releases. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.
At Dartmoor Financial we choose to provide advice on Lifetime Mortgage products only.
Why a life time mortgage?
A lifetime mortgage can be a suitable option in many circumstances whether it be for:-
- Increasing your income
- Much needed home improvements
- Clearing an existing mortgage
- Assisting your children with a deposit for their first home
- Or of course… Spending on whatever you want… (New Holiday Home, Caravan, Motor Home, Boat, Static Caravan etc)
What will we do for you?
We will make it seem simple. We arrange to come to you to discuss your requirements with you. Equity Release can be quite a deep subject both regulatory and emotionally, so it is important to include your family in any big decisions regarding the family home and their potential inheritance.
Give us a call on 01822 615502 or email firstname.lastname@example.org to find out more about how we might help you unlock the value of your home. Remember, Dartmoor Financial also provide a Will Drafting and other Estate planning services so you could get all you need sorted with just a couple of appointments.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.