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?

Lifetime Mortgage

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.

Advantages Disadvantages
  1. You will have a substantial lump sum or regular income to spend as you wish, without making any interest payments until the scheme ends.
  2. You still own your or house so will benefit from any increase in value.
  3. The plans are available to borrowers as young as 55.
  4. You can still move home if you wish.
  5. You don’t make have to a monthly repayment, although you may be able to do so.
  6. You can elect to ‘protect’ a percentage of the eventual sale of your home so ensuring a guaranteed inheritance is available to your beneficiaries.
  7. It may be possible to draw higher amounts if you are in ill health.
  8. All SHIP members have a No Negative Equity guarantee and providing you do not break the terms of the agreement, there is a No Repossession guarantee.
  9. Some providers offer Interest Only mortgages, which would require a monthly interest payment. The advantage of this arrangement is that, so long as the payments are maintained, the debt does not increase over time.
  1. The loan debt accumulates rapidly. The younger you are when you borrow the money, the greater the potential debt due to greater life expectancy.
  2. The value of your estate is reduced, leaving less for your beneficiaries.
  3. Interest rates may be high due to the long term nature of the loan.
  4. Further loans may not be possible.
  5. There may be early redemption costs.
  6. When you take out the mortgage it isn’t possible to know how much the final cost of the mortgage will be.
  7. Equity Release may effect your eligibility for means-tested state benefits like guaranteed pension credit and savings pension credit.

Home Reversion

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.

Advantages Disadvantages
  1. You will have a substantial lump sum or regular income to spend as you wish.
  2. You don’t have to make a monthly repayment.
  3. You will not build up any debt.
  4. Beneficiaries know the proportion of your home (if not the value) that they will receive from your estate.
  5. Unless you have sold 100% of your property, you continue to share in the rise in value of your property.
  6. You can take further cash depending on the amount you originally sold.
  7. Minimum age is 65.
  8. You can usually draw more from a Home Reversion scheme than a lifetime mortgage.
  9. It is usually possible to draw higher amounts if you are in ill health.
  1. It will reduce the value of your estate and therefore the amount left to your beneficiaries.
  2. If you die soon after starting the plan, you could have effectively sold off your house (or a share of it) cheaply. Some schemes may give a rebate if death occurs within the first few years of the start date.
  3. Some schemes can take a long time to arrange, and some companies are very selective about the properties they consider.
  4. Equity Release may effect your eligibility for means-tested state benefits like guaranteed pension credit and savings pension credit.

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.