Equity release, also known as a lifetime mortgage, is a popular way to release money as a cash sum or regular income in retirement. You effectively unlock the value of your home to use as you wish now, and it is paid back when you either go into long term care or pass away.
It has helped many achieve financial freedom in their later years, whatever that means to each person. For some it’s the ability to help out grandchildren with big outgoings like home deposits, for others it’s the ability to fund the holiday of a lifetime or a home renovation.
These days there are a huge number of plans available depending on your individual situation – you can choose to pay or not pay interest, to safeguard a percentage of your home’s value or to release the maximum possible (known as home reversion). Beacon IFA are completely independent and impartial and will be able to search the entire market to find the right plan for your needs.
It is essentially a loan against the value of your home, but without any monthly payments. It is instead repaid by selling the property when the last surviving borrower goes into long-term care or passes away. How much you can borrow will depend on the value of your home and your age.
As with any loan, there are benefits and risks to weigh up which our advisers can help you work out. One of the key downsides is that it will reduce any inheritance you have built up. It may also affect eligibility for means tested welfare benefits and the amount of tax you pay.
How you use the money is completely up to you. Here are some examples from past clients:
FUNDING LEISURE AND HOBBIES
CONTRIBUTING TO HOUSE DEPOSIT
SUPPLEMENTING PENSION INCOME
TRAVELLING THE WORLD
INHERITANCE TAX PLANNING
One of our experienced independent financial advisers will review your plans with you in person, talking through the benefits and risks to help you decide if equity release is right for you, all free of charge.
If you decide to go ahead, your adviser will recommend the policy or policies they believe are right for you. You can then choose the option that best suits you, and complete the application.
The provider will need to arrange an independent valuation of your home, just like with a mortgage – this will decide the maximum amount you will be able to borrow.
We will track your application and keep you updated throughout. It can take anything from a few weeks to a few months before you receive your sum, and will involve meetings with your solicitor.
We have friendly advisers covering South Wales, Bristol, Oxford, London and beyond. Call or email, or complete the short enquiry form below and we will get back to you to arrange a no obligation preliminary discussion.