If you are a homeowner aged 55+ it is very possible that the value of your house or flat has increased over the years and there is surplus cash (or ‘equity’) tied up in it. Equity release is a way of getting this cash out of your home without having to move.
The money that you release is tax free and yours to spend however you want, such as:
Making home improvements or alterations so that you can stay in your home longer.
Paying off your mortgage and/or other debts to reduce your outgoings.
Paying for holidays and large purchases.
Making gifts to family as part of your inheritance planning.
Is equity release right for me?
Equity release requires careful consideration as it will affect the value of your estate and (potentially) your entitlement to state benefit.
Our advisers will talk you through the options, answer any questions you may have and tell you at once if equity release is not the right choice for you.
They will look at:
Other ways of accessing the cash you need (such as using current investments or savings).
Whether you are claiming all the benefits you are entitled to.
How equity release would affect your future entitlement to help with long-term care costs.
To help you further, here is a copy of the Guide to Equity Release provided by the government’s Money Advice Service. (On clicking the above link you will leave the regulated site of NRM Finacial Ltd. Neither NRM Financial Ltd nor Sesame Ltd is responsible for the accuracy of the information contained within.)
How much can I release?
The actual amount will depend on your age and health, the value of your home and the particular company providing the equity release.
We do not offer an online calculator that forces you to leave your contact details as we feel they can be both misleading and invasive. We much prefer to have a chat when you are comfortable to do so. However, as a very broad guide, you can typically borrow between 22% and 55% of the value of your property.
As an example, a couple in their seventies in reasonable health and with a home worth £300,000 could expect to raise up to £111,000 through an equity release arrangement.
What are the different schemes available?
There are three types of equity release available:
1) Interest only lifetime mortgage - Borrow against the value of your home and repay part or all of the interest.
2) Lifetime mortgage -
Borrow against the value of your home and either allow the interest to be added to the mortgage or make flexible payment arrangements.
3) Home reversion plan - Sell all or part of your home in exchange for a cash lump sum and a lifetime rent-free tenancy agreement.
Our advisers will explain which of these options are available to you and the advantages and pitfalls of each.
Why use us?
We provide expert local advice in the comfort of your own home and with no pressure or obligation to take things further.
Our friendly and professional advisers will discuss your needs and preferences face to face and at your own pace. We will assess your eligibility for the products available and help you decide whether equity release could be right for you.
We have access to a comprehensive range of providers, giving you the best choice possible.
If you decide to go ahead we will complete all the necessary paperwork and deal with everyone involved in the transaction on your behalf to make things as stress free as possible.