Equity release advice from the equityRelease Centre
Independent equity release advice is essential to ensure that an equity release scheme is suitable for you and that you select the correct scheme. So what is an equity release scheme:
Equity Release is a term given to a variety ofschemes which help homeowners, normally over 55 (or in joint cases, both people are over 55), release some of the capital tied up in their home without the need to take out a traditional mortgage or move. The money can be used for whatever purpose you want, whether that is to replace your car, do home improvements or provide extra income, the choice is yours.
With Lifetime Roll Up Mortgages depending on your age and property value you can choose how much equity to release. Unlike a traditional mortgage, no repayments need be made until death or needing to move into Long Term Care when the house is sold, the loan repaid and any balance paid to your estate.
For most of us our most valuable asset is probably our home. Wouldn't it be useful if you could use some of its value without having to move to a smaller, less expensive property. Well now it is possible to do just that! By releasing some of the equity in your property it is possible to have money to use now, on whatever you please and with some schemes you don't have to make any repayments until the property is sold. These schemes are provided by some of the UK's largest and most reputable insurance companies and Building Societies. However, with so many to choose from you need independent advice to ensure that you get the best deal for you.
Another advantage of releasing equity in your home is that it could reduce the value of your estate below the 2008/9 Inheritance Tax threshold of £312,000 (if single or divorced). This could result in substantial savings to your beneficiaries who would otherwise be liable to pay 40% Inheritance Tax on everything over £312,000. If married or widowed and your spouse or late spouse leaves everything to you, this would only be helpful if your estate was worth more than £624,000 (2008/9) .Even if your estate is liable to Inheritance Tax, due to possible changes in future inheritance tax thresholds and that the roll up of interest may exceed any tax due, we would recommend that any potential benefit from saving inheritance tax should only be seen as a secondary benefit which may result in reducing the overall cost of the scheme, and not as the sole purpose for taking out equity release.
All equity release products involve borrowing against, or selling all or part of your home, and may work out more expensive in the long term than downsizing to a smaller property, and may affect your entitlement to State benefits and grants. There may be more suitable methods of raising the funds you need.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
Advice on equity release schemes
There are three different ways of releasing equity without monthly repayments:
- Lifetime Mortgages
- Home Reversion Plans
- Home Income Plans
Lifetime Mortgage schemes are only available to people over 55 (or in the case of joint applicants, both are over 55) but if you are under 55 or prefer to make monthly repayments to stop the loan building up there are also:
- Interest Only Mortgages (these are also available even for the retired)
Your home may be repossessed if you do not keep up repayments on your mortgage.
For researching and arranging the best Interest Only Mortgage scheme for you, we will make a charge. This can be paid by you either as a fee, usually 2.5% of the loan payable on application to the lender, but subject to a minimum of £1450 and any commission we receive from the lender will be refunded to you, or a combination of fee and commission, so that the total remuneration received would not be less than £1450. We would retain any commission received from the lender towards this fee. Where the commission received is less than £1450 you would pay a fee for the balance on completion.
For a comparison of the various equity release schemes click here.
With an increasing number of providers and so many different schemes to choose from, it is becoming increasingly important to get independent advice on what is the best way of releasing equity in your particular circumstance. The equityRelease Centre provides expert advice to help you decide which type of scheme is most appropriate for your needs. Our experts ensure that you receive relevant advice on the best available schemes selected from the UK's most reputable insurance companies.
If you would like advice please complete our equity release enquiry form and one of our trained consultants will call you back shortly. Alternatively please feel free to phone the equityRelease Centre Centre on 0118 958 8810 or click through to our Equity Release Centre home page and follow the links from there.
You will always receive courteous service in the strictest confidence from highly trained staff who all value your custom. Your business will be dealt with in a friendly, efficient and personal manner at all times. |
