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Equity Release

Equity Release For Homeowners

  • Maintain 100% Home Ownership
  • Unlock a tax free lump sum of money
  • Continue to live in your own home
  • Make no monthly repayment

WHAT IS Equity Release

Equity Release Schemes allow you to benefit from the equity that is tied up within your property. Equity release enables people over the age of 55 to release tax free cash from the value of their home. The money can be withdrawn to suit your requirements & can be taken as a lump sum, or by flexible withdrawals, or as additional income to supplement retirement lifestyle. In fact, you have the freedom to spend the equity release tax free cash on anything you wish.

Equity release schemes are designed to run for your lifetime. They are repaid on death or after moving into long term care. At this point the house is usually sold and the equity release mortgage is repaid from the sale proceeds Equity release lenders provide a 12 month window to complete this sale. Any money left over will pass to your beneficiaries.

Do I Qualify for Equity Release?

Personal Details

  • Applicants need to be a UK resident & homeowner.
  • The minimum age of the youngest applicant for a lifetime mortgage is 55.
  • A home reversion scheme application requires a minimum age of 65.
  • Mortgage free, or ability to repay any existing mortgage on completion

Property Details

  • The property must be your main residence & have a minimum valuation of £60,000.
  • The property should mainly be of standard construction.
  • The property should be situated in the England, Scotland, Wales or Northern Ireland
  • Freehold & leasehold properties acceptable; minimum remaining lease of 75 years.

Personal Requirements

  • A capital lump sum, regular income or initial lump sum with ad-hoc future payments
  • To take a release of equity with no monthly payments over your lifetime
  • An option to make monthly repayments & maintain a level mortgage balance
  • Financial assistance to enable you to live a happy & enjoyable retirement!

Key stages in the equity release process?

Below are the stages involved in the application process explaining in more detail what happens at each step. Assuming you have taken the right equity release advice, received a Key Facts Illustration, are happy to sign an application and all documents requested have been provided, then the process can start as follows: -

 

Application Process

  • Application submitted to provider – who will then process & check your application to ensure no documents are outstanding. Some equity release lenders conduct a credit check & voters roll check.
  • Valuation is instructed - the lifetime mortgage or home reversion company will instruct a local surveyor  to assess your property value & condition. They will call to arrange a mutually convenient appointment.
  • Solicitor instructed to start legal work - they will check title to the property & whether it's freehold or leasehold. They will also check any outstanding mortgage, as this must be repaid on completion.
  • Mortgage offer is made - upon receipt of a successful valuation, the equity release lenders will then make a mortgage offer detailing the conditions of the proposed lifetime mortgage. A copy is sent to you and the original documents including mortgage deed are sent to your solictor. These require signing.
  • Completion date is set - the solicitor will receive the money from the equity release company and settle any outstanding mortgages. Also any fees due to themselves & adviser are deducted before the balance is sent directly to your nominated bank account. The money is now yours to spend as you wish.

How is equity release commonly spent?

The release of equity from your property is tax free upon completion and is paid by your solicitor into a nomiated bank account, or you can receive a cheque. Compare Equity Release customers have kindly provided feedback on how they have managed their newly found financial freedom. The list below shows the most common uses of how our customers have put their lifetime mortgage funds to best use in retirement: -

  • Pay for home improvements
  • Clear debts such as mortgage, loan, credit cards & bills
  • Buy that new car or caravan
  • Treat yourself to that dream holiday
  • Gift money to your children when they need it most
  • Help towards a house purchase
  • Pay for nursing care fees in the home
  • Reduce future inhertance tax liability
  • Top up your savings & pay for lifes' luxuries 

How to ensure you get advice as to which equity release is best

There are various methods of releasing equity from your property & plans available which can be confusing in deciding which equity release schemes are best. As equity release plans can affect the final value of your estate, always get advice from a lifetime mortgage advisory service  If you would like to arrange a free no obligation consultation with a qualified equity release adviser, call the team on FREEPHONE 0800 1956 740 or complete our contact form.

Citizens Advice Bureau

Can provide help on sorting out debt and advice on state benefits 

Consumer Financial Educational Body

Your Guide to Retirement

Department for Work and Pensions (DWP)

Find out about your state benefit entitlements Benefit enquiry line: 0800 88 22 00 

Entitled To Solutions

Help with checking your benefit entitlements. Website: 

Consumer Guide Against Pension Fraud and Scams

A comprehensive guide that aims to educate and protect the general public against the many different pension scams and benefits fraud, and offer useful tips on what to do in case you feel you are being targeted by a pension scammer.

Financial Services Compensation Scheme (FSCS)

The compensation fund of last resort for customers of authorised financial services firms 7th Floor Lloyds Chambers Portsoken St London E1 8BN Tel: 020 7892 7300

Financial Ombudsman Service

For help in resolving complaints Complaints resolution Exchange Tower, London E14 9SR Tel: 0845 080 1800 

Financial Conduct Authority

Access help and information on equity release Consumer helpline: 0800 111 6768 

Help With Bereavement

Provides practical support and guidance to help you and your family through a difficult time. They can also help you through the legal side of bereavement, explain and help you obtain Probate with free clear impartial advice Tel: 0800 0246 121

HM Revenue and Customs (HMRC)

For information on tax Enquiry Centre: 0845 9000 404  

Money Advice Service

Free clear unbiased advice Tel: 0300 500 5000 

Mouseprice

Allows you to get an idea of what your home is worth. 

Net House Prices

Helps you find out the price of property in your area 

The Solicitors Regulation Authority

The Code of Conduct for Solicitors 

Warmfront

Government funded scheme to make homes warmer, healthier and more energy efficient. 

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