What is Equity Release?

If you would like access to the cash tied up in your property, then an equity release plan may be just what you are looking for. If you are a property owner then you could receive a lump sum of money with the property itself used as collateral. This would mean that as you moved into retirement for example you could receive a cash injection without having to sell your home or move. You could remain in the property you love whilst still benefiting financially.

Many people use equity release as a way to raise additional funds. It is also sometimes known as a lifetime mortgage. The loan is refunded to the lender when the property is sold following the death of the owner. There are many different types of equity release schemes and so it is important that you choose one that suits you. Some equity release schemes release the money in one lump sum. In other cases the money is released as a monthly or even yearly income.

Equity release

Equity release plans are very beneficial and have helped a large number of people supplement their pension or income. You can continue to live in the house and only when the house is sold following death of the occupier does the money have to be repaid. People without children in particular can enjoy the benefits of an equity release scheme, although often it is still possible to leave some of the value of the home to family when the house is sold anyway. Signing up to an equity release plan is a legal way to reduce inheritance tax too. Any money released from the value of your home, as long as it is your primary residence is exempt from taxation (unless it goes on to be invested). Many people have lived in their homes for decades and the thought of selling and moving is too much to contemplate. Equity release is ideal because it allows you to stay in the house whilst accessing additional funds.

If you would like to talk to a professional about equity release and how it could help you, contact us here at UK Homebuyers Services. We are UK property experts and our team of staff would be delighted to answer your questions and provide further information.