Millions of elderly and retired people are living in homes whose values have greatly appreciated in recent years but are struggling on limited pensions – they are asset-rich but cash-poor.
Equity Release schemes allow you to borrow money from a financial institution against the value of your home. The loan is paid off on your death, or the death of your surviving spouse or when the survivor of you move into a care home. You keep the right to live in your home for the rest of your life and the money raised can be used in any way you wish.
To qualify for a scheme the youngest occupant normally has to be at least 65 (although some institutions go as low as 55) and the property needs to be freehold or have at least 75 years of a lease remaining.
There are two main types of scheme – Lifetime Mortgage and Home Reversion. Each has advantages and disadvantages.
As members of the Equity Release Council, and with long experience in this sector, we can advise you on all the legal aspects.