Equity Release - Helping your family
Why consider an Equity Release retirement plan?
With the credit crunch beginning to bite, have you found your finances being squeezed or:
- Seen your much needed emergency funds decimated by recent falls in stock markets?
- Got members of your own family who are perhaps struggling to keep their own business afloat during this recession and are finding their own banks less than co-operative?
- Family who cannot get a mortgage or even re-mortgage because mortgage lenders now require larger deposits or greater equity in the property than your family now possess?
- Found it impossible to downsize because you cannot find a buyer?
If the answer to any of these is yes, providing you own your own home and are at least aged 55 (or if you are a member of a couple, the youngest person is 55) equity release could provide you or your family with that much needed extra cash, without any need to prove your income, the need to move or even to make monthly repayments if you want.
Whilst property prices have fallen recently, if you have lived in your current home for quite some time, you will probably be surprised at just how much it has gone up over the years. Partly for this reason and partly because it may be difficult for you to move at present, considering an equity release windfall is one logical option to letting your home help you through this difficult time.
Regulated equity release plans come in many shapes and forms, (see types of equity release schemes) but the idea is basically the same. You either take out a loan secured against your home (Lifetime mortgage) or you sign over part or all of your home's legal ownership (Home Reversion Plan), in exchange for a lump sum or an income for life. In doing so you also get;-
- A cast-iron right to live in your home for the rest of your life rent free.
- The reassurance that you and your family will never suffer from negative equity when the property is sold on last death or need to move into permanent Long Term Care.
- The ability to move to any other suitable property without penalty.
However equity release schemes may work out more expensive than other alternatives such as downsizing to a smaller property and may affect your eligibility for state benefits and grants.
Not only this but if your need for cash is likely to be short lived, e.g only until you do find a buyer, or because your family would intend repaying any loan as soon as possible, we can now even arrange a Drawdown Lifetime mortgage scheme which offers no Early Repayment Charges at anytime. This means you can benefit now from some extra cash (Minimum initial draw £25,000) whilst retaining the ability to pay it back if you wish with no penalties at anytime.
However equity release schemes may work out more expensive than other alternatives such as downsizing to a smaller property and may affect your eligibility for state benefits and grants.
“Equity Release” includes home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.
To find out more about how equity release could work for you click here or to check to see just how much you could raise click here. Alternatively complete our online enquiry form and one of our equity release consultants will call you back as soon as possible or call us on FREEPHONE 0800 970 4883 to discuss your requirements further.
