Equity release
What are equity release schemes?
An equity release scheme, sometimes referred to as a lifetime mortgage, has the power to unlock a lump sum or regular payments to supplement your income. Before considering an equity release scheme the Financial Services Authority suggests that you consult an independent financial adviser. Our in-house, fully independent financial advisers have a great deal of experience of this product and can advise if this is the best option for you. If you are interested in finding out more about equity release, please contact us by >Clicking here.
How equity release plans work
Equity release schemes lend a part of a home’s value in return for a share of the proceeds when you pass away. Equity release plans can be complicated products and are a major step for many people. Our fully regulated financial advisers discuss the entire process to investigate whether an equity release scheme is the right decision. As part of this process we take into account your entire financial circumstances to ensure that you are fully protected. To contact us regarding equity release, please >Click here.
The benefits of equity release schemes
Equity release schemes can give a lump sum, a regular income or both. Money released from the value of your principle residence is free of tax, although if the cash is then invested there may be tax to pay on any income or growth. There is no requirement for you to move house or sell your home to unlock equity.
Equity release and inheritance tax
Equity release can also cut inheritance tax bills. Inheritance tax thresholds are 40% on everything remaining in excess of £325,000 (2009/2010). Importantly, the figure includes the value of your home. Equity release schemes are often utilised to mitigate the amount of this inheritance tax. They could be used, for example, to give a child or grandchild the deposit to buy their own property.
Equity release and ongoing care requirements
The funds liquidated as part of an equity release scheme can be used to pay for care bills without having to sell a home and move. The equity released can ensure that the family home can be maintained in addition to funding care needs.
Types of equity release schemes
There are two different types of Equity Release schemes. A lifetime mortgage or home reversion plan. Our advisers are able to discuss the merits of both types of equity release plans and recommend the solution that best fits your needs. To find out more, please contact us by >Clicking here.
Speak to us regarding equity release
Our in-house financial advisers will be happy to discuss the equity release process with you. Please telephone us and ask for the financial services division on 01925 263 109.
