Unlock the capital in your home

Your home is likely to be one of the largest investments of your lifetime, and your largest asset. Depending on your situation or plans for the future, you may wish to raise additional capital to support the lifestyle you desire, but would rather not sell-up and move home in order to do so.

The Basics

Put simply, Equity Release Schemes are a way of getting cash from the value of your home, without having to move out of it. The value of your home is its price on the open market, deducting any mortgage balance or other debt secured against it, and the cash raised can be used as you wish. There are limitations and requirements of Equity Release Schemes, for example you would need to be of a certain age (typically over 50), and the benefits will vary depending on the type of scheme you choose.

The Tools

Typically, there are two types of Equity Release Scheme available.

- Lifetime Mortgages

With a lifetime mortgage you take out a loan that is secured against your property. You continue to own your home, however you will be liable for the full mortgage amount including interest. This will last until you either die or move away (for example into a care home or with family), at which time the full mortgage amount will be repaid with the proceeds of the sale.

There are many different types of Lifetime Mortgage, therefore it is best to seek advice as to which would suit your particular situation.

- Home Reversion

Home Reversion schemes are where you sell all or part of your home, but continue to inhabit it as a tenant. Under these schemes you may be liable for rent, although this is generally a token amount. As with the Lifetime Mortgage, upon death or moving away the company or individual you sold the property to will sell it on.

Under either scheme you can usually choose to receive the capital as a cash lump sum, regular income, or a mixture of both. You can also use any capital raised to purchase an annuity as an alternative way of providing an income.

If you would like to discuss your requirements with one of our Independent Financial Advisers then please click here, complete the enquiry form, and we will contact you to assess your circumstances, review the market place and then present options for you to consider.