What Is Equity Release
If you are a homeowner aged 55 or over and would like to raise additional funds, equity release could be the solution for you.

You can access the equity in your home as tax-free cash without having to sell or downsize. There’s no restrictions on how you spend your money, offering the financial freedom to make the most of your later-life.

There are many different structures and products to choose from, which is why it is essential to discuss your objectives with a qualified adviser.

Lifetime Mortgages
A Lifetime Mortgage is a mortgage secured against your home, allowing allows you to release a tax-free cash lump sum from the equity held in your property. With a Lifetime Mortgage you retain full ownership of your home and still benefit from any increases in price.

There are several Lifetime Mortgage products/structures available on the market;

• Lump Sum Lifetime Mortgages (Provides a lump sum)
• Drawdown Lifetime Mortgage (Provides an initial lump sum then a ‘cash facility’ to draw down from)
• Interest-Serviced Lifetime Mortgage (similar to Drawdown Lifetime Mortgages, but this allows you the opportunity to pay some or all the monthly interest charged)

Home Reversion Plans
A Home Reversion Plan is another type of equity release product which offers a way to sell part of your home in return for a tax-free lump sum or regular income with a ‘lifetime lease’. A ‘lifetime lease’ ensures the individual can stay in their property until they die or go into long-term care.

You can generally release a larger amount of capital from a Home Reversion Plan than a Lifetime Mortgage. The reason for this is they are not loans and so there is no interest to pay. However, if there is an increase in the value of your property, you will only benefit from the increase in the proportion of the property you still own.