What is equity release?
Equity release is where you can release tax free cash from your property without having to move or sell your house. Depending on the type of plan to suit your needs, you can access your funds as an initial lump sum or set up a draw down facility, which means you are able to access your funds as and when required.
With a lifetime mortgage, there are no monthly repayments, the interest rolls up and is usually payable when the property is sold, unless the plan is repaid earlier.
Alternatively, you may elect to service all or part of the interest in order to prevent interest rolling up.
The equity release market is growing year on year, which has encouraged providers to adapt to customer needs. You can include many different features on your plan to suit your circumstances, including protecting a percentage of your property for the benefit of your beneficiaries.
Why choose Smart Equity Release?
Our experienced equity release specialists take the time to explain all the advantages and disadvantages of each type of plan. We conduct a minimum of two appointments in order to give you time to think about our discussions.
We are able to research and advise on the whole market in order to get the right plan for you.
It is a big decision, so we will always recommend that you have an independent representative present, such as a family member or close friend.
Smart Equity Release do not charge any upfront fees for the advice. In fact, you do not pay any fees until your equity release completes and you have received your funds in your bank account. You will not pay an advice fee upfront and will only be charged when your lifetime mortgage completes - this advice fee is fixed at £1,500. We will receive commission from the lender, this is shown on your illustration.
Arrange your FREE no-obligation consultation in the comfort of your own home with your local Equity Release Specialist. Please call 0151 673 1782 to arrange your free face to face, telephone or video appointment. We would recommend that you invite someone you trust along to the appointment as well, whether this be a friend or family member, so any queries can be answered. However, we understand everyones situation is different, so will leave this decision down to you.
Smart Equity Release advise on lifetime mortgages and home reversion schemes. To understand the features and risks, please ask for a personalised illustration. Check that the scheme will meet your needs if you want to move or sell your home or you want your family to inherit. If you are in any doubt, seek independent advice.
How can I use my tax-free cash?
There are many reasons for releasing equity from your home and here are just a few of them:
Holiday home purchase
To supplement your pension income to cover living expenses.
To settle a repayment mortgage or clear the balance on an interest-only mortgage.
To improve your standard of living.
To gift to your family, so that you can see them benefit from the money now, whilst you are still alive.
Depending on the size of your estate, releasing the cash now to spend or gift, could also help reduce your inheritance tax liability.
To carry out some home improvements.
To take that holiday of a lifetime.
To help your children onto the property ladder.
To pay off other outstanding debts and lower your monthly outgoings.
Whatever the reason, be comfortable in knowing the equity release advice (lifetime mortgage advice) you will receive will always be made with your best interests in mind.
What are the different scheme options?
Although there are many different plans available, they can all be split into four main categories of equity release schemes.
Lifetime Mortgage
You release a lump sum from the value of your property, whilst maintaining 100% ownership of your home. This amount, plus any interest accrued, is repaid from the sale of your property when you pass away or move into long-term care.
Drawdown Lifetime Mortgage
This works similarly to Lifetime Mortgage but with a regular cash reserve/draw down option allowing you to withdraw amounts at a frequency you choose up to a specified amount of years, or until the cash reserve has been used up.
Home Reversion Plan
Here, you sell some or all of your property in exchange for a lump sum of money, whilst maintaining the right to remain living in your home, rent free, for as long as you live.
Independent legal advice
We work with a panel of solicitors that specialise in equity release conveyancing. You can choose your own solicitor or deal with one of the solicitors on our panel, either way, the solicitor will work on your behalf and will offer you independent legal advice. Conveyancing is not regulated by the Financial Conduct Authority.
Think carefully before securing other debts against your home. If you remortgage a standard mortgage or pay off your unsecured debts using equity release, you may end up paying more in interest over the term of the lifetime mortgage. This is because interest on a lifetime mortgage does not need to be repaid and will roll up and can therefore significantly increase your outstanding balance.