What is Equity Release
"Equity" is the value that you have in your home. It is the open market value less any mortgage or other such debt held against it. “Equity Release” is a way of being able to obtain cash from the value of your home. You do not have to move out of your house and will continue to be responsible for its maintenance.
Equity Release is designed to help older clients who either own their property outright, or have relatively small mortgages left to pay.
There are 2 main types of Equity Release scheme: -
• Lifetime Mortgages
• Home Reversion Plans
Both types of scheme are regulated by the Financial Conduct Authority (FCA). By using an Equity Release product, you can draw a lump sum or regular smaller sums from the value of your home, whilst continuing to live in it.
It is important to note that although you may come across “Sale and Rent Back Schemes” these are NOT a type of Equity Release Scheme.
Equity Release Schemes are very complex and it is important that you seek specialist advice from a fully qualified Independent Financial Adviser who holds the appropriate examinations.
All of our Later Life Consultants hold the relevant qualifications and have many years of experience in this area of financial planning. |
