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Equity Release - Lifetime Mortgages and Home Reversion Schemes
Roll-up Lifetime Mortgages
A roll up lifetime mortgage is an Equity Release plan. It enables you to release cash secured against your home.
You and the lender agree a cash lump sum. This is based upon the value of your home, your age and other factors including how much mortgage you have left on your property and the differing amounts on offer from the various providers. An interest rate will be agreed with the provider and every year interest will be added to the original loan.
The full amount that will be repaid when you pass on or move into residential care is the original loan plus the interest that has rolled up over the years. Anything left remaining in equity from your home will be passed on to your estate/next of kin so they can still receive an inheritance.
Home Reversion Schemes
A Home Reversion scheme generally involves trading a part of or all of the value of your property with an Equity Release provider in exchange for a tax-free cash lump sum.
The amount you would be offered would not match the full market value of your property. You would receive a smaller amount because you are allowed to live in your home for the rest of your life without paying any rent to the provider who owns a stake in your property.
The provider will only receive a return on their investment after your death, or when you decide to leave, for example to move into residential care.
Please call us on 01392 258 553 to arrange your FREE initial consultation from a fully qualified Equity Release Adviser.