Equity Release experts based on the Wirral. 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.
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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 at M.A.I.N
Updated: 8th December 2021
There are two different options when it comes to releasing equity from your home.
The first option is a Home Reversion Plan. This means you sell part of your home or all your home, to give you a regular income and/or lump sum.
The second option is a Lifetime Mortgage. Here, you would take out a loan secured against the property, i.e., a 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 since you can retain full ownership of your property and choose whether to make monthly payments.
Home Reversion Plan
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.
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.
Who is eligible? …
- For a lifetime mortgage you need to be at least 55 years old.
- For a home reversion plan you need to be at least 65 years old.
- You must own property in the UK, which must be your main residence.
- Your property must be in reasonable condition and over a certain value, and there may also be restrictions on the type of property accepted.
- If you have a mortgage or secured loan on your property you may still qualify for equity release, but it will depend on the value of your home and the amount outstanding on the existing mortgage or loan. You’ll have to pay off any outstanding mortgages or loans secured against your home at the same time as taking equity release.
- Equity release may not be suitable if you have dependants living with you. Any dependants should take separate legal advice. If they wish to remain living with you in the property, they may need to sign a waiver confirming that they understand they don’t have the right to reside there if you die or move into permanent residential care.
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.