Equity Release is a way for people of pensionable
age to turn some of the value of their home into cash. You are free to use the
cash released in any way you choose, such as home improvements, or topping up
your pension income whilst retaining the right to live in your home for the rest
of your lifetime.
There are three types of Equity Release
Schemes:
- Lifetime Mortgage Schemes
This scheme allows you to take out a loan based
on the value of your home. The loan is secured against your home but unlike a
traditional mortgage you do not make any monthly repayments, instead the
interest is rolled up over the period of the loan and is repaid once your home
is sold either when you die or move into long term residential care.
With these schemes you sell either a percentage
or all of your home to an equity release company. You retain the right to live
in the property for the rest of your life but on your death or when you move
into long term residential care, the property is sold and the equity release
provider will receive a percentage of the proceeds in proportion to the amount
of the property you originally sold to them on commencement of the plan.
This scheme is similar to a lifetime mortgage but
the money from the home is used to purchase an annuity that gives you a regular
guaranteed income for the rest of your life.
It is essential you take specialist independent
financial advice before proceeding with an Equity Release scheme as this is a
lifelong commitment. Once it has been established that Equity Release is the
most suitable option for you, our specialist team at Fisher Jones Greenwood will
be able to advise you on the legal implications ensuring you fully understand
the terms and conditions of the scheme prior to formal completion.
For further information e.mail equityrelease@fjg.co.uk