Equity Release

What is Equity Release?

Equity release is a way you can unlock some of the value of your home in the form of tax free cash.

Most commonly this is done by way of something called a Lifetime Mortgage. As with all mortgages this is secured against your home but unlike traditional mortgages has no specific end date and instead is repaid upon death or upon moving into permanent long term residential care. You may also repay the mortgage by selling your home, for example you may decide to downsize.

Equity release is becoming more and more popular. According to the Equity Release Council in 2022 there was a total of 93,421 equity release customers with total lending of £6.2billion.

There are many reasons why you may want to consider equity release, for example you may want to help out family members. This could be children or grandchildren needing a deposit on their first home.

You may be reaching the end of your mortgage term and may not be able to extend the facility, using an equity release product could help you repay the mortgage and allow you to stay in your home without a contractual obligation to make further monthly payments. Canada Life customer data has revealed that 50% of applications in the first six months of 2022 were from customers looking to clear their existing mortgage, the most common reason given for releasing equity.

If you are aged over 55 and own your own home then you may well qualify.

Please get in touch if you would like to know more. Currently we refer this type of business to a trusted third party.

Equity release will reduce the value of your estate and affect your entitlement to means tested benefits and tax status. You are strongly advised to register a lasting power of attorney to mitigate the risks associated with managing financial affairs in the event of cognitive decline.