What is Equity Release?

Equity release is the opportunity to release the hard earned cash you have locked in your property. There are many situations where this problem once solved, can benefit you, your estate and your family in many ways. The money you release is tax free and can be used however you wish such as home improvements, investments, holiday’s or to simply live more comfortably. We have over 40 plans available and the way they release the money varies. We can release tax free lump sums, or provide a regular income. We also have “draw-down” plans available which mean if you want to borrow £50,000 but only need £25,000 right now you can release the other £25,000 as and when you please, this is a great benefit as you only pay interest on the money you have released.

Repaying the loan

Another benefit is that you do not have pay the money back straight away, as that would defeat the purpose of many people’s situation looking to borrow money. The provider of the loan agrees that the money you borrow is only repaid upon death or long term care, you will never be asked to leave your property in any other circumstances and all our plans come with a “no negative equity guarantee” this means that you will never have to pay the provider back anything more than the sum of your property, in most cases this is not the case anyway as house prices usually increase.

Should you wish to repay the money sooner than this we do have options available, however we suggest you discuss these options with an advisor as everyone’s circumstances are different.

Lifetime Mortgages

• A lifetime mortgage gives you the choice of a cash lump sum or income, typically with no monthly repayments to meet.
• Usually interest is added to the lifetime mortgage loan throughout your lifetime, typically at a fixed rate each month. It’s important to note that the interest applied can grow quickly as it is compounded.
• The loan plus interest is eventually paid back when the home is sold, usually when you move into long term care, or when you and your partner die. If you repay the lifetime mortgage early, you may have to pay an early repayment charge.
• You can typically release between 18-50% of the value of your home with a lifetime mortgage, depending on your age.
• You retain full ownership of your home.
• Some lifetime mortgage plans let you guarantee an inheritance for your family. However the amount you leave as an inheritance will be reduced.

Home Reversion Plans

• With a home reversion plan you sell part or your entire home to a reversion company in exchange for a tax-free cash lump sum and a guaranteed lifetime lease with no monthly payments to make.
• You stay in your home rent free for as long as you choose, although a peppercorn rent, typically £1 a month, may be payable with some providers.
• You are able to guarantee an inheritance to your beneficiaries, provided you don’t sell your entire home to the reversion company.
• Both you and the reversion scheme company share in any increase in your property’s value, according to the percentages owned.
• You can typically raise more money from your home at a younger age with a reversion plan compared to lifetime mortgages and the older you are, the more money you will be able to release with a reversion plan.

Drawdown Plans

• The main difference with a drawdown plan is that you don’t request the full sum of money available to you immediately. Instead, you decide on a maximum amount of equity you want to release, and ‘draw down’ the cash in stages when you want to.
• You are in control of your money as you can draw down cash by making withdrawals as and when you need them, or you may be able to request a monthly income.
• You only pay interest on the amount of equity released, so interest will accumulate more slowly than with a regular lifetime mortgage if you don’t draw down all of your cash at once.  However, interest rates are usually higher on a drawdown plan than they are on a standard lifetime mortgage and the interest applied to the drawdown mortgage can grow quickly as it is compounded.
• You retain full ownership of your home.
• Some drawdown plans let you guarantee an inheritance for your family. However the amount you leave as an inheritance will be reduced.
• You can’t usually raise as much money with a drawdown lifetime mortgage as you could with a reversion plan, especially at younger ages, and there are restrictions on the minimum amount you can release.

Through our partnership with, the independent equity release specialists, generating cash from your home is safe, simple and hassle-free, whichever stage you’re at:

Getting independent advice

During your free no-obligation initial consultation with your personal financial adviser they will provide you with all the information about equity release that you’ll need. They’ll then leave you to decide whether equity release is right for you and to discuss it with your family.

Researching the market

If you decide to find out which is the most suitable equity release plan for you, on your instruction, your adviser will search the entire equity release market on your behalf. As part of their service to you, they’ll then compile a personal report explaining their recommendations and contact you to arrange a further appointment to talk you through the options.

Looking into all your options

Your independent adviser will present their research to you and give you a copy of your personal report. This comprehensive report outlines the full details of the recommended individual equity release plan, the reasons why it is suitable for you, all the facts and figures, and any costs or charges associated with the equity release plan.

Going ahead

Should you decide to accept your adviser’s recommendations and apply for an equity release plan, they’ll then make sure the process of releasing the cash is quick and hassle free. Your dedicated customer services specialist will guide you through the rest of the process and keep you fully informed about the progress of your equity release application. They’ll speak to your solicitor and equity release plan provider on your behalf to make sure everything is going ahead smoothly, right through to the moment you receive your money.

Do I Qualify?

We try our very best to find each client the most suitable product possible.
For equity release we have some criteria which help us match you with the right product and lender.
• Be aged 55 – 95.
• Own your own home.
• Your home must be worth at least £60,000.
• Have little or no mortgage – any outstanding mortgage must be paid off from the equity release.
• The property must be freehold or leasehold (leasehold with a minimum of 75 years remaining on the lease).
• The property must be of standard construction.
• Must be your main residence.
• You must live there for at least 6 months of the year.
We work in partnership with the market leader in Independent equity release advice, they will discuss all options available to you before they inform you of the pros & con’s of equity release plans. If equity release is a possible and worthwhile option for you, one of their advisors can search the whole market to find you the most suitable and appropriate plan for you.