What is Equity Release?
Equity Release schemes allow you to release tax-free cash from your home to boost your finances in retirement.
Many older people in the UK now find themselves asset rich but cash poor, they have built up substantial wealth but find that this is tied up in bricks and mortar.
It is of course possible to sell up and buy a smaller home. But many older people would rather not sell the family home.
Equity release can offer a sensible solution for the over 55s who want to supplement their income in retirement, fund home improvements, or simply pay for the holiday of a lifetime, for example.
Equity release has been around for a while, but many consumers have been wary about it in the past. Now, however, both lifetime mortgages and reversion schemes are regulated by the Financial Services Authority (FSA).
In addition at Berkeley Consultants we will only recommend products from lenders that have signed up to the SHIP (Safe Home Income Plans) which provides safeguards to ensure that you can remain in your home until you die or move into long term care and offer a no Negative Equity guarantee to ensure the amount owed on the property is never more than the property value.
Equity release can provide you with a regular income, or a cash lump sum. In return, you take out a payment free loan which is then paid off when the property is sold on your death. Alternatively you can choose to sell a proportion of your home in return for the money. The first type of equity release mortgage is known as a lifetime mortgage, while the second is called a reversion scheme.
As Independent Advisers specialising in equity release we’ve already helped numerous homeowners across the country make the most of their finances in retirement by safely releasing the equity from their homes.
There are currently over 40 SHIP approved equity lease schemes to choose from and you can save your estate thousands of pounds if you choose the right one.
That’s where we can help. We search the whole equity release market on your behalf and offer award winning independent advice about the most suitable scheme for your individual circumstances. We can guide you through the different types of schemes available to find the best possible plan for your needs.
Equity is not suitable for everyone and there a number of considerations to be made before entering into this type of contract. You should always consult with your family and get independent legal advice. An Equity Release mortgage can also affect your eligibility for state benefits and may limit your options for moving home in later years. It will also reduce the inheritance your leave you family or other beneficiaries.
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