Releasing equity is a way of unlocking the value of your property, without having to sell or move home. There are a number of products that fall under the ‘Equity Release’ portfolio, finding the right one may seem difficult. At M.A.I.N we make it easier for you to make an informed decision on whether or not it’s suitable.
Equity Release at M.A.I.N
Updated: 14th December 2020
There are two different options when it comes to releasing equity from your home.
The first option is to sell part of your home or all of your home, to give you a regular income and/or lump sum. This option is known as a Home Reversion Plan.
The second option is to take out a loan secured against the property, i.e a mortgage. This option is known as being a Lifetime Mortgage.
There are advantages and disadvantages to both options. Below you will see a few things to consider when deciding which option may be best for you.
If you are considering a form of equity release, we always offer a FREE, no obligation appointment to discuss all options and factors to ensure you are making the right decision for you.
Lifetime mortgages are often seen as the most popular form of equity release. This is due to the fact that you can retain full ownership of your property and choose whether or not to make monthly payments.
Home Reversion Plan – Equity Release
As mentioned above, this plan involves selling either a part share or full share of your property to a Home Reversion provider in return for either a lump sum or monthly income. You retain the right to live in the property until either you sell the property, move into long-term care or die.
If you sell the property, the proceeds are split according to the equity share owned by you and the home reversion provider. If you opt for the ‘full reversion’ option, the home reversion provider will own your home outright, including any increase in value from the date of sale.
Lifetime Mortgages – Equity Release
This is not a typical type of mortgage. This option is typically designed to run for the rest of your life or until you move into long-term care. You borrow money secured against the value of your home, giving you a lump sum and/or regular income. You continue to own your home, until the loan is repaid.
This is usually when the property is sold following death or a move into long-term care. If there is any money left after the loan is repaid, it will go to your beneficiaries.
Book Your FREE Appointment
If you would like to find out more about equity release and whether or not it would suit your needs and requirements, just get in touch.
We can have a chat, discuss all the advantages and disadvantages, then establish the perfect outcome for you. We can arrange a telephone, Zoom call or face-to-face appointment to find out whether this is the most suitable option for you.
“Equity release is a great way to access equity in your property without having to move, but may not be the most suitable option for all circumstances”
Graham Allsop – Broker/Director at M.A.I.N
AN EQUITY RELEASE PRODUCT WILL REDUCE THE VALUE OF YOUR ESTATE, WILL NOT BE SUITABLE FOR EVERYONE AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFITS. TO UNDERSTAND THE FEATURES AND RISKS PLEASE ASK FOR A PERSONALISED ILLUSTRATION.