Welcome to 55+ Equity Release
At 55+, we strive to provide all the information you’ll need about the different types of equity release available, the costs associated with equity release schemes, and we’ll provide the answers to some of the most frequently asked questions about equity release.
Plus we’ll calculate how much cash you could release from your property, with our easy-to-use Equity Release Calculator, and we’ll find some of the best deals available in the UK today.
Enjoy Your Retirement, Unlock the True Value of Your Home
Equity release is an increasingly popular method of unlocking the true value of your home, allowing you to access some of the capital that would otherwise be nothing more than brick and mortar.
With an equity release scheme, you’ll either receive a tax-free cash lump sum, monthly payments, or a combination of the two. How you use your money is entirely up to you!
The History Behind Equity Release Schemes In the UK
Equity Release schemes in the UK have been around, in some form or another, since the 1960s. In 1991, the UK’s leading equity release providers formed the Safe Home Income Plan (SHIP), now known as the Equity Release Council. Members of the Equity Release Council agree to follow a code of conduct, which was brought in with the view to ensure customer safety.
Two new guidelines that equity release providers must adhere to are:
- Provided the policyholder keeps to the agreement terms, they will never be turned out of their home.
- Provided the policyholder keeps to the agreement terms, their children will not end up in a situation of negative equity.
The Different Types of Equity Release
At 55+ Equity Release, we can advise and arrange two main types of scheme. Each has its advantages and disadvantages, and we recommend that all of our customers weigh up the options before deciding on one or the other. All of our customer’s circumstances differ, so it’s imperative that you choose the best option for your particular circumstances. Our staff are always on hand to help you make this decision.
So, what are the types of equity release scheme on offer?
The first option available to you is known as a Lifetime Mortgage. A Lifetime Mortgage is a loan against the value of your home and can be taken either as a lump sum, a monthly income, or both. No capital and interest repayments are made until the property is sold. Instead, the interest is rolled up and added to the total amount of the loan.
Some Lifetime Mortgage providers allow you to take the capital in stages, which is called ‘drawdown’. The benefit of ‘drawdown’ is that the interest only becomes payable when you actually take the capital. The total debt builds more slowly and interest grows more slowly as well. Although there is no guarantee that property values will rise in future, any rises in property value will offset the effect of the rolled up interest on the loan.
A Home Reversion scheme is when you sell all or part of the equity in your home to a specialist reversion company.
You may not receive the full market value of your home , as the reversion company gives you the right to live in your home rent free for the rest of your life. However, now there are reversion companies that will allow you to draw the maximum share for your age , gender and property value for a percentage share in your property.
When the property is sold, usually after death, the reversion company receives its share of proceeds from the sale.
So, for example, if you sold a 50% share of your home, the reversion company receives 50% of the proceeds when it’s sold.
For more information on the types of equity release schemes available, get in touch with 55+ Equity Release today.
Why Choose 55+ Equity Release?
- We have specialised in Equity Release for over seven years, building up an unrivalled bank of experience in the field.
- We work for individuals – for people like you – and not a mortgage lender, so we can give you our unbiased advice on what suits you best.
- We take care of all the paperwork and act as your first point of contact if anything goes wrong along the way.
- Our service starts with a free initial consultation.
At 55+, we are professional independent equity release specialists working in Kent, London, the South East and across the UK. 55+ Equity Release offer expert advice and an uncompromising quality of service, placing your needs first.