Family services
Equity release
If you're over the age of 55, equity release could offer you a way to use the value of your home to raise money. Generating income from your home is a big decision, so it’s important that you understand the risks as well as the benefits, and that you consider all your options.
Many of our clients have used equity release for different reasons, such as to generate additional income, provide lifetime gifts to relatives, for home improvements or to fund long term care. You probably have your own ideas – there are no restrictions on how you use the funds. However, there are certain conditions that you must meet before taking out an equity release plan.
Lifetime mortgage
With a lifetime mortgage plan, you take out a loan secured on your home. You keep full ownership of your home. The loan, together with the accumulated interest, is repaid from the sale of your home, either when you die or if you move into long-term care. Some providers offer a ‘drawdown’ facility, which means that instead of borrowing all the money you need as a lump sum at the start, you can take smaller cash amounts.
Home reversion
With a home reversion plan, you sell your home, or part of it, to a reversion company. This means you may no longer own your home. Instead you may only own a part of it and receive a lease giving you the right to live there rent-free (or sometimes paying a token rent). The reversion company is normally paid when the property is sold, either when you die or until you have to move into a care home.
Equity release schemes vary greatly from one to the other, with lots of new providers entering the market all the time. We’ll help you to understand your options to ensure that you make the right decision for you and your family.
Contact us to today to see how we can help you. In the meantime you can also download our guide to equity release.
Important information
Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration.
We are not limited in the range of mortgages we will consider for you.
When you apply for a lifetime mortgage, there is a fee of £1,495 on application, payable to omni financial limited. We will also be paid commission from the company that lends you the money or buys your home.
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Free tools
Try our free tools
Equity release calculator
An indicative idea of how much tax-free cash you could release from your home.
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What is my home worth?
A free estimated value for your home, based on recent sales nearby.
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Care cost calculator
How long savings and your home could pay for care before council help starts.
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Our sister company
Omni Lifetime Planning
Releasing equity can change what you leave behind, so it is a good time to review your will. Our sister company Omni Lifetime Planning can help.
Q&A
Questions & answers
What is equity release?
Equity release lets homeowners aged 55 or over take money from the value of their home without moving. The most common type is a lifetime mortgage, where the loan and interest are repaid when you die or move into long-term care.
Will I still own my home?
With a lifetime mortgage, yes. You keep ownership and can live there for the rest of your life, provided you keep to the terms.
How does equity release affect my estate?
Interest usually rolls up and compounds, so the amount owed can grow quickly and reduce what you leave behind. Plans meeting Equity Release Council standards include a no negative equity guarantee.
Are there alternatives to equity release?
Yes. Downsizing, retirement interest-only mortgages, using savings, or help from family may suit you better. We look at the alternatives with you before recommending anything.
Your first meeting is free
Talk to an independent financial adviser in St Albans. Call 01727 223251 or send us a message.