Equity Release

Many homes have soared in value since they were first purchased, and you may be able to unlock some of the cash, tax free, through equity release. If you’re 55 or over, and you’re a homeowner, get in touch to see how you could benefit.
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An Equity Release product will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to state benefits. To understand the features and risks please ask for a personalised illustration.

Unlock tax-free cash

Equity release refers to a range of products that allow a homeowner over the age of 55 to keep ownership of their home, whilst accessing some of its cash value. These products are called a lifetime mortgage, a form of loan with no monthly repayments (although you may choose to make repayments depending on how it would benefit you) and it is tax-free!

This type of mortgage is specifically designed for people who are ‘asset rich and cash poor’. Maybe your pension isn’t as much as you’d hoped for, but your property value has soared in recent years. Equity release enables you to access the cash that is currently tied up within your home.

You do not have to make monthly repayments, but some lifetime mortgage providers could give you the option (which may be beneficial depending on your circumstances). The maximum amount you can borrow is based on the value of your property and the ages of the homeowners.

If you currently have a small mortgage, this would need to be paid off as part of the equity release transaction. The loan is then paid back with proceeds from the property’s sale upon the homeowner’s death or transition into long term care.

At Warners we have the specialist knowledge and qualifications to help you through the equity release process and will explain both the advantages and also the points to be aware of such as the reduction in your estate for your beneficiaries, and any effect on current or future means tested state benefits. We also take the time to fully understand your individual circumstances to make sure that this is the best course of action for you, if it isn’t, we will say so.

If you already have an equity release contract, it is essential that you review it regularly. We may be able to find an equity release plan that offers a reduced interest rate, increased flexibility, saves your estate substantial sums or that allows additional borrowing.

If you have already got a later life mortgage, it is essential to regularly review it and see if a change in plans would offer a reduced interest rate, allow additional borrowing, or increase flexibility to save your estate substantial funds. Anyone with an existing later life mortgage could benefit from our free consultation. We have found homeowners with later life mortgages from the early 2000’s often find the greatest benefits when reviewing their current plan.

The standard fee is £799. This includes £299 on application and £500 at completion, which we may be able to claim from other sources. Regardless of if you decide to proceed with equity release, you also get a free, no-obligation consultation with a specialist Later Life Mortgage and Protection Advisor.