What is equity release?
An equity release scheme lets you raise money from your property either a lump sum or regular income, or both and at the same time gives you, and a partner, the right to remain living there until you both die or move out.
EQUITY RELEASE REQUIRE AN ADVISER TO HOLD A SPECIALIST QUALIFICATION. ALWAY ENSURE YOU ASK THIS BEFORE PROCEEDING WITH ANY ADVICE.
There are two types of equity release plans:- Lifetime Mortgages and Reversionary mortgages.
With a lifetime mortgage,you take out a new loan secured on your property. You do not make repayments;instead interest is rolled up to be paid when the scheme is ended.
You continue to own and live in your home. After you and your partner have died or moved into long-term care, your house is sold and the amount you borrowed, including rolled-up interest is paid to the lender. Anything left over, after costs,passes to your or your partners, estate.
With home reversion plans, you sell all or part of your home, but you continue to live in your home. After you and your partner have died, your house is sold and the proceeds are split between the home reversion provider and your or your partner's estate.