Many people when they reach retirement do not have the savings or pensions available to allow them to maintain their life style. They have paid off the mortgage, helped their children here and there but now find they have no money to enjoy themself or to carry out home improvements.
They find that the only asset they have is their property. Due to their age they will not be able to get a standard re-mortgage on the property, if they were able to obtain a mortgage it would be for a short period of time which equates to high monthly payments which will put a strain on their monthly finances.
If you are 55 or over, own your own home worth at least £70,000 and have found yourself asset rich but cash poor, Equity Release can help you to access the funds you’ve built up over the years without the need to move or downsize.
There are two types of Equity Release available.
You can secure a mortgage up to 60% Loan to Value on your property as long as it is your main residence whilst you retain ownership. You can ring-fence some of the value of the property so you loved ones can still inherit part of your estate. You also have the option to make payments if you wish or allow the interest to roll-up. The loan and interest accrued are only paid upon death or if you move into long-term care.
You can sell part or all of your property to a home reversion provider. They in return will either offer you are lump sum or regular payments. You will remain to have life interest in the property and live there rent free until your passing, but must maintain and insure the property. You again can ring-fence a percentage of the property for later use or for inheritance. The percentage you keep will always stay the same even if the property value increases, unless you take further cash. At the end of the arrangement the property is sold and the proceeds are shared according to the remaining share of ownership.
For more information call us today.