How Do I Release Equity From My Home?
Releasing equity from your home can be a useful solution if you’re looking to free up some cash, especially during retirement. It’s important to understand the process, the benefits, and the considerations involved. Here’s a straightforward guide to help you navigate this decision.
What does it mean to release equity?
Equity release refers to a range of products that let you access the cash (equity) tied up in your home if you’re over the age of 55. You can take the money you release as a lump sum or in several smaller amounts or as a combination of both.
What type of equity release is best?
It’s not quite as easy as that… there are two main types of equity release, and it very much depends on which one suits you better.
Lifetime Mortgage:
This is where you take out a mortgage secured on your property while retaining 100% ownership of the property. From here onwards you can choose to make repayments or let the interest roll-up.
The remaining loan amount and any accrued interest are paid back when you pass away or when you move into long-term care.
This is a great option for many people, and they find it reassuring that they still own the full property.
Home Reversion:
Home Reversion is where you sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property rent-free until you pass away, but you must agree to maintain and insure it.
This type of equity release is not very common now and North East Equity Release do not provide advice or recommend this type of product.
Will I be eligible for equity release?
We have created a list of simple questions for you to answer:
- Are you a homeowner with a property worth at least £70,000?
- Are you aged 55 or older?
- Do you want to access some of the value in your home to supplement your retirement?
If you answered yes to all the questions above, then you are eligible, and I can help you.
What should I consider before releasing Equity Release
We would always advise that you seek financial advice, choosing to go down the equity release route is a large financial decision. It is important you are aware of all the options available and the terms and conditions. It may be wise to involve your family and discuss your plans as this decision can impact their inheritance and future.
It is wise to talk to a financial advisor who can guide you through the options and help you understand how equity release could affect your estate and your entitlement to future benefits. Here at North East Equity Release , we can help you understand all the sneaky rules and make it a smooth sailing process.
How do I apply for Equity Release?
If you decide that equity release is right for you, then the next step is to reach out to a professional, we are here to help you. Here at North East Equity Release, you are our priority, and we will guide you through all of the steps and processes involved in releasing equity.
This is not a quick process; it will take time as an application is needed. But that is what we are here to help you with, from filling in the application to legal advice.
To conclude, equity release can offer financial freedom in retirement, allowing you to utilise the value locked up in your home. However, it’s important to consider the long-term impact and explore all available options. By being well-informed, you can make a decision that enhances your later years without undue stress.
Reach out to Joanne at North East Equity Release for more information tailored directly to you.
