Things to consider about equity release

The most common misconception about equity release today is that you have to give up ownership of some or your entire home. This is not the case.

Well over 95% of our clients elect to take out either a lifetime mortgage, drawdown lifetime mortgage or interest-only lifetime mortgage. With all three of these modern plan types, you release a proportion of the equity in your property whilst continuing to own it 100%. This means that you continue to benefit from any increase in your property value in the future.

In addition, most of the plans we sell are 'portable', so you can still move home, taking your equity release plan with you.

Although there are now many safeguards to protect you, the borrower, you should still ensure that you are aware of all of the implications before entering into a Lifetime Mortgage. The following are some points to consider:

• Because the funds that you release, plus any interest accrued, are paid back from your estate once you pass away, a lifetime mortgage will reduce the value of your estate and the amount that you will be able to pass on to your beneficiaries.
• It is possible that the additional funds made available to you through equity release could affect your entitlement to means-tested state benefits.
• Two alternatives to releasing equity are downsizing to a cheaper property and/or taking in a lodger.
• Some equity release plans impose an early-repayment charge, so you could incur charges should you wish to pay them off before your death. However, like a standard mortgage, these will vary from plan to plan, reinforcing the benefit of specialist equity release advice before you proceed.

Equity Release Advice

If you are concerned by any of these points, please feel free to contact us for equity release advice or give us a call on 08080 555 222 , where one of our fully qualified equity release advisors will be able to give you the facts based on your own circumstances.

Your tax position and eligibility for means tested benefits may be affected, the value of your estate may reduce as might your options for moving or selling your home in the future

Age Partnership provides initial advice and an equity release recommendation for free and without obligation. Only if you choose to proceed and your equity release application completes would a typical fee of 1.3% of the amount released be payable.

Call us today on freephone 08080 555 222 or use our equity release calculator to find out how much equity you could release.