Equity Release – and other funding based on your property
If you are a homeowner and are looking to generate income from your property in later life, there are a range of options available, bracketed under the general heading of Equity Release. These might include:
- Interest only mortgages where interest payments are made throughout the loan period and the loan amount is repayable in full on death.
- Lifetime mortgages where both the amount borrowed and the accumulated interest become payable on death.
- Home reversion plans where ownership of all or part of your home is transferred to a provider and you receive the value of the property either as a lump sum or a monthly income. Plans vary—some involve paying a nominal rent whilst others provide rent-free occupancy. When the property is sold, the provider will receive the value, or a proportion of the value, of the property at that time.
Clearly the decision to borrow money in your later years will have a considerable impact on the estate you can leave to your heirs. We will give you clear, realistic advice about what options will best suit your circumstances and we will only recommend providers who follow the SHIP (Safe Home Income Plans) code of practice.
Our specialist advisers are highly qualified to give advice in this area and either hold or are working towards the prestigious SOLLA (Society of Later Life Advisers) accreditation.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.