For Equity Release Advice we act as introducers only.
Equity release is the process of unlocking some of your property's value, turning it into a tax-free lump sum of cash. You could then use this to pay for one-off purchases, to improve your lifestyle or to help loved ones.
If you are a homeowner aged 55 or over, you could be eligible to take advantage of releasing equity from your property. Equity release can significantly improve your financial situation, giving you a more comfortable retirement.
Please be aware that all plans will reduce the value of your estate and may affect your entitlement to state benefits.
How it works
The lender gives you a lump sum (the equity released from your home). You pay nothing as the interest is ‘rolled up’ into the loan. The amount borrowed plus this interest is repaid out of the proceeds from the sale of the property after you die.
How much you can borrow depends on the value of your home and your age. The older you are, the higher the percentage of your property’s value you can borrow. Generally, you will not be advanced more than 50% of the value of the property. Most loans are fixed-interest, so reducing risk.
With lifetime mortgages, every year interest is added to the amount you owe. This will reduce the remaining equity in your home. If you live a long time or house prices fall, there may be no equity left for your heirs to inherit.
The Equity Release Council code of conduct
We only introduce you to equity release firms which adhere to the Equity Release Council code of conduct. The members of the code agree to provide fair, simple and complete presentation of their plans. The benefits, obligations, variables and limitations must be clearly set out in their literature, including all costs which the applicant has to bear in setting up the scheme, the position on moving, the tax situation and the effect of changes in house values.
The legal work will always be performed by the solicitor chosen by you. In all cases, prior to the completion of the plan the solicitor will be provided with full details of the benefits the client will receive. The solicitor will be required to sign a certificate to the effect that the scheme has been explained to the client.
The Equity Release Council certificate will clearly state the main cost to the householder's assets and estate e.g. how the loan amount will change or whether part or all of the property is being sold.
All of these plans carry a 'no negative equity' guarantee i.e. you will never owe more than the value of your home.
Equity release refers to home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration.