Lifetime Mortgages

Equity release on property

The most common form of Equity Release is known as a Lifetime Mortgage.

If you are a homeowner aged 55 or over an Equity Release on property with a Lifetime Mortgage could unlock some of the equity in your home and enable you to make the most of your retirement years.

You would choose the amount you wish to borrow up to a maximum level based on the value of your home. This will be paid out to you either as a tax free lump sum or a regular monthly income or a combination of both.

You are completely free to spend this money as you wish.

You and your partner retain full ownership of your home and have the right to live there throughout both your lives. You are not required to make any repayments during your lifetimes.

Effectively you will have a secured loan that will be paid off when the property is sold after the survivor of you dies or enters long term care. Interest is applied on a compounding basis from the beginning and added to the loan - the whole being rolled up and repaid out of the proceeds of the sale of the property at that time. Any remaining balance of such proceeds will then be available for distribution in accordance with your wishes or your will. Of course, these steps may affect the amount of inheritance you leave behind.

It is important to note that whilst there are clear advantages to equity release on property, there could be some disadvantages: for example your tax position could be affected; or your eligibility for some means tested benefits changed. However these and any other areas of uncertainty or disadvantage can and will be fully examined before recommending the best step for you in the matter of equity release remortgage.

This is a lifetime mortgage. To understand the features and risks please ask for a personalised illustration.

Call us on 0845 013 4561 or email us at john.land@honnisterpartners.com to discuss aspects of equity release & remortgage in more detail.

Equity Release Consultants is a trading name of Honister Partners Ltd. Honister Partners Ltd is an appointed representative of Sage Financial Services Ltd which is authorised and regulated by the Financial Services Authority. Sage Financial Services Ltd is entered on the FSA register (www.fsa.gov.uk/register) under reference 150452. Honister Partners Ltd Registered Office: 1 Nicholas Road, London, W11 4AN. Registered in England and Wales No. 06923303. The information and content of this site is directed at UK consumers only & is subject to the UK regulatory regime.