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Equity Release advice personal to you

Meet with a Retirement Solutions adviser in your home to discuss how equity release could work for you
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We work with equity release lenders to provide lifetime mortgages that are Equity Release Council approved and meet its product standards.

We are independent, we are not tied to any one equity release provider. Our advisers can find the most suitable plans

Our team of specialists equity release advisers provide whole of market advice of market advice
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Find out how much equity you could release from your home

Release equity in later life with an
equity release plan

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Equity release advice

We have a growing team of independent equity release advisers. We are able to make a difference to home owners needing equity release by only recommending products that meet the Equity Release Council’s product standards.

Check my eligibility

To be sure you’re eligible, try our free online calculator for your personalised results.

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“We had a chat with Mr & Mrs Craft to talk about them switching an equity release plan.”
“We had a chat with Mr & Mrs Eadie to talk about them switching an equity release plan.”
“We had a chat with Mr & Mrs Kirby to talk about them switching an equity release plan.”

Additional Information on Equity Release

Equity release is a financial arrangement designed for homeowners aged 55 and above, allowing them to access the equity tied up in their property without the need to sell or vacate their home. This solution is particularly appealing for retirees or those close to retirement who find a significant portion of their wealth bound in their home’s value but may have limited liquid assets to support their lifestyle or meet other financial needs.

Types of Equity Release Schemes

  1. Lifetime Mortgage: This is the most common form of equity release. The homeowner secures a loan against their property to receive a tax-free lump sum or regular payments. There are no mandatory monthly repayments; instead, the loan and accrued interest are repaid when the homeowner dies or moves into long-term care. Some products allow for voluntary partial repayments or interest payments to manage the debt’s growth effectively.
  2. Home Reversion Plan: In this arrangement, homeowners aged 65 or older sell all or part of their property to a home reversion provider in exchange for a lump sum or regular payments, while retaining the right to live in their home rent-free for life or until they need long-term care. The amount received is typically below market value, reflecting the provider’s investment until the property is sold.

Importance of Seeking Independent Advice

Given the complexity and long-term financial implications of equity release, including potential impacts on inheritance and eligibility for means-tested benefits, it’s crucial to obtain independent professional advice. A financial adviser can offer a comprehensive assessment of an individual’s financial situation, goals, and family dynamics, providing personalized advice tailored to their specific needs.

Alternatives to Consider

Equity release may not suit everyone, and it’s essential to explore alternatives, such as:

  • Downsizing: Selling the current home to buy a less expensive one, potentially freeing up cash for retirement needs.
  • Accessing other assets: Utilizing savings, pensions, or investments.
  • Grants and benefits: Exploring eligibility for state benefits or grants that can help cover living or home improvement costs.
  • Family support: Receiving financial help or loans from family members.

Key Considerations

When it comes to considering equity release, several key considerations should be thoroughly examined before embarking on this financial journey. These factors not only impact the present financial landscape but also have far-reaching implications for the future and the estate planning process.

  • Impact on Inheritance: One of the foremost considerations for homeowners contemplating equity release is its effect on inheritance. While equity release offers immediate financial relief by tapping into the property’s value, it inevitably diminishes the estate’s overall worth. As homeowners draw funds from the equity, the sum available for heirs decreases proportionately. This reduction in inheritance can significantly impact the financial legacies individuals aim to leave behind for their loved ones, making it imperative to weigh the trade-offs carefully.
  • Costs and Fees: Equity release schemes entail a plethora of costs and fees that can substantially impact the overall financial outcome. These expenses include interest rates, arrangement fees, and potential penalties for early repayment. Interest rates, in particular, play a pivotal role as they accrue over time, potentially eating into the property’s equity and leaving borrowers with a smaller share of their estate. Moreover, arrangement fees and penalties for premature repayment add to the financial burden, necessitating a comprehensive understanding of the associated costs before committing to an equity release scheme.
  • Property Conditions: Maintaining the property in good condition is a fundamental requirement for homeowners engaging in equity release. While this may seem like a trivial consideration, neglecting property upkeep can lead to dire consequences. Insufficient maintenance not only diminishes the property’s value over time but may also jeopardize the terms of the equity release agreement. To avoid potential complications and ensure compliance with contractual obligations, homeowners must allocate resources towards property upkeep, which may entail additional costs for repairs, renovations, and maintenance services.

Equity release offers a viable option for homeowners to leverage their property’s value in retirement. However, due to its long-term commitments and potential risks, thorough due diligence, including consultation with an independent financial adviser, is essential before proceeding.