Equity Release Mortgages
Equity Release Mortgage schemes allow you to utilise the equity you have built up in your property. There are essentially 3 types of equity release scheme available at present, however the schemes are changing all the time with increasing amounts of flexibility:
- Home Reversion - Effectively you sell all or part of your property to a company for a lump sum and have the right to remain in the property until you die. When you die the property or part of the property reverts to the company.
- Lifetime Mortgage - Often referred to as a “Roll-up Mortgage”, you receive a lump sum payment for which there is interest payable, however this interest is added to the sum released, so that you don’t have to pay it on a monthly basis. The amount of debt builds up over time as the interest is added to the initial sum, and the final sum, including interest, is cleared when you die or sell the property.
- Interest Only Mortgage - These are ordinary interest only mortgages where you essentially remortgage your property to release a lump sum. You then have to pay the interest on that mortgage on a monthly basis for as long as you have the mortgage. You can then pay off the mortgage at a later stage eg. when you receive a pension payout or if you sell the property.
Over time the flexibility of the Equity Release schemes is improving, many now allow regular drawdowns rather than a lump sum to allow you to top up your income on a regular basis and only pay interest once the money has been drawn down. Get in touch and we can look at all the Equity Release options and advise on the most suitable scheme for you.
To understand the features and risks, ask for a personalised illustration. You should also take advice from your solicitor.
Areas covered include: Wetherby, Tadcaster, Boston Spa, Collingham, Kirk Deighton, Leeds, Harrogate, York...
Print this pageYou are here: Home » Additional Services » Equity Release
Previous Page: Solicitors and Legal Services
Next page: Jargon Buster