Equity Release
Is releasing cash from your home right for you?
Today, we are typically a cash poor but property rich society. House values are considerably more than they were 10 years ago. Your home is likely to be your biggest financial asset. It’s often worth much more than any other investments or savings.
However, getting your hands on this cash to pay for renovations, long-term care or retirement is a major step. It requires selling your home, downsizing or releasing your cash in some other way. There are lots of things to consider.
First off you need to understand clearly what’s involved. Releasing equity is simply the process of making the money in your home work for you, either by giving you a cash lump sum or a regular income. There are many options, depending on where you are in life.
Planning for the future
Consulting a financial adviser before making any concrete decisions is wise. Borrowing against or selling your home is a long-term financial commitment. One type of equity release is a lifetime mortgage, where every year interest is added to the amount you owe. This will reduce the remaining equity in your home. If you live a long time or house prices fall, there may be no equity left for your heirs to inherit.
Depending on your financial situation, we can help direct you towards the best option:
· helping you to consider the most appropriate way to generate cash or income;
· highlighting the risks and real costs involved;
· illustrating how the value of your estate will decrease;
· discussing the implications for your family on your death.
If you’re thinking seriously about equity release, we may consider things you haven’t. Why not talk through your ideas and concerns with us today?
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
We can be paid either by a combination of fee and commissions or on a fee only basis.
Combination of fee and commission : A fee of £750 will be charged for sourcing, advice and recommendation of a mortgage, payable on receipt of the recommendation and we will retain any commissions received by the mortgage provider.
Fee only basis : A fee of £750 will be charged for sourcing, advice and recommendation of a mortgage, payable on receipt of our recommendation plus 0.75% of the value of the loan payable on completion. Any commission paid by the company that either buys your home or lends you money will be refunded to you.
For example, for arranging a £200,000 mortgage a fee of £750 is payable on receipt of our recommendation and £1,500 will be payable on completion of the mortgage.
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