Types of Equity Release schemes
There are a wide range of schemes available so it is particularly important to seek expert, independent advice. That’s why Yours Retirement Services have chosen Key Retirement Solutions as their equity release partner.
To find out the best scheme for you, you can take advantage of a free, no-obligation initial consultation with one of our specialist equity release advisers. During the consultation your adviser will take the time to understand your circumstances in order to find the right option for you. Then, should you wish, your adviser will return with a personalised report. At this point there’s no pressure or obligation to proceed – your adviser may even decide that equity release isn’t right for you!
To find out more or to arrange a free, initial no-obligation consultation, call the freephone number at the top of this page or click here to order your free guide to equity release.
Here is a brief introduction to equity release schemes…
Lifetime Mortgages
A lifetime mortgage is a type of equity release plan where a loan is secured against your property to provide you with a tax-free cash lump sum or a regular income to spend as you wish, with typically no monthly repayments to meet.
Compound interest is added to the lifetime mortgage loan throughout your lifetime. The loan plus interest is eventually paid back when the home is sold, usually when you move into long term care, or when you and your partner die. You can typically release between 10-50% of the value of your property with a lifetime mortgage, depending on your age.
This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.
Enhanced Lifetime Mortgage
The enhanced lifetime mortgage plan allows you to release more money from your home than a lifetime mortgage, if you have certain health conditions such as diabetes or high blood pressure, or lifestyle choices such as smoking.
This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.
Drawdown Plans
Drawdown lifetime mortgages work in the same way as general lifetime mortgages but with added flexibility. You decide the total amount of money you want to release, and then 'drawdown' the cash in stages as and when you want to. The interest is only added on the amount released so it adds up more slowly than it would if you released the full amount at the outset. However, they are often offered at slightly higher interest rates compared to lifetime mortgages, to reflect added flexibility.
This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.
Home Reversion Plans
With a home reversion plan you sell all or part of your home to a reversion plan company in exchange for a tax-free cash lump sum and a guaranteed lifetime lease with no monthly repayments to meet.
You stay in your home rent-free for as long as you choose and are able to guarantee an inheritance to your beneficiaries. Both you and the reversion plan company share in any increase in your property's value, providing you have not exchanged 100% of its value.
This is a home reversion plan. To understand the features and risks, ask for a personalised illustration.