Equity
Release Schemes
Equity release provides you with the opportunity to unlock
the equity within your home without having to make any interest payments
or move out. Equity release is available for home owners aged 55 or
older and there are two ways equity can be released.
Equity release options
Equity release mortgages also known as lifetime mortgages allow you
to raise a mortgage against your property and receive a tax free lump
sum or regular guaranteed monthly income and retain full ownership
of your home.
Home reversion plans also known as home income plans allow you to
sell part or all of your property in exchange for a tax free lump
sum or regular monthly income and a guaranteed lifetime tenancy.
Lump sum or regular income
Equity release mortgages and home reversion plans offer you the option
to receive either a tax free lump sum or a regular tax free income.
We can also arrange equity release schemes that allow you to receive
an initial tax free lump sum and a regular monthly income.
Safe Home Income Plans (SHIP) Guarantee
When you arrange an equity release mortgage or home income plan it
is important to check that the provider is a member of SHIP. We only
deal with providers who adhere to the SHIP code of conduct. There
are many advantages of the SHIP code of conduct but the most important
is the provision of a 'no negative equity' guarantee. Visit our document
centre to download a copy of the safe home income plan code of practice.
Tax planning
Equity release can be used as a tool to mitigate or reduce both inheritance
tax and personal tax. You should also consider the effect a lump sum
could have on any age allowances or social security benefits you receive.
Visit our library to check our tax tables and use our inheritance
tax calculator.
Insurance requirements
If you choose a home reversion plan then the buildings insurance will
normally be the responsibility of the plan provider. If you choose
an equity release mortgage you will be responsible for maintaining
both the buildings insurance and your home contents insurance.
Help & advice
There are many different equity release schemes available in the UK
and it makes sense to take independent financial advice to find an
equity release scheme that offers you the most competitive terms.
Please call one of our independent financial advisors to discuss your
requirements or go to quote me now to request a quote and information
pack on equity release.
