Equity Release

An Equity Release scheme enables you to increase your retirement income by releasing tax-free money from your home. If you are a homeowner over 55 Equity Release could open up exciting new possibilities. Your biggest asset in Retirement tends to be your property, the equity that you have accumulated during your lifetime can safely be released in order for you to have more readily available cash to spend.

Uses for Equity Release

Release cash from your home and continue to live in the property.
Tax free cash can be released as a lump sum, or an income or a combination of both.
Increase retirement income
Pay off a mortgage, or help your children get on to the property ladder
Pay off debts
Purchase a second home
Planning inheritance tax
Future holidays
Private health costs are covered!
Home improvements e.g. adding a conservatory to your home
Finance a move to a house of greater value
Or just improve your lifestyle!

The Benefits of Equity Release

If you are a homeowner over the age of 55 who has money tied up in your own property, Equity Release could be right for you.

If you wish to retain the ownership of your home with the right to live in the property for the rest of your life then Equity Release can help you achieve this.

You can release part of the value of your home and receive a cash lump sum to spend on whatever you wish - known as equity release in the UK. The amount you can borrow is based on the youngest age, if you are a couple, and the value of your home. The older you are the larger the lump sum available.

The funds borrowed will be repaid on death, long term care disablement or you can choose to repay the loan back early. Interest is normally added to the loan and repaid out of your future value of the property, however, with some available schemes the interest payments can be made to stop the debt increasing.

Understanding how Equity Release works is imperative. There are different types of Equity Release plans: Lifetime Mortgages, Home Retirement Plans, Draw Down options and Home Reversions. Having the differences explained by a professional advisor will enable you to be able to make an informed decision about which option is right for you.

You can borrow the money as a lump sum or in regular smaller amounts through Draw Down.

Lifetime Mortgages are similar to traditional mortgages in they result in a legal charge against the property which will be settled upon death or long term care disablement. The main difference is during the lifetime of the mortgage there is normally no interest repayments, the interest is added to the loan. With Home Reversion you sell part or all of the value of your property to the reversion provider in return for a generally higher lump sum of money.

Leaving an inheritance to your loved ones can be a priority and this can be achieved as certain schemes offer guarantees where the inheritance is protected and you can still release some of the equity for your benefit ,giving you access to the best of both worlds.

The Equity released from your property is tax free and is usually a lump sum. We recommend you only borrow what you need for your immediate needs and use a Draw Down facility where you can borrow further funds when required in the future, this helps reduce the increase in the size of the final repayment.

The money released from your home can be used for anything you choose, use it to repay your mortgage and other debts, holidays of a lifetime, new car, home improvements or helping the kids out, there are no restrictions.

The rates of interest on the loans are normally fixed and offer you a degree of certainty in what will need to be repaid. As interest rates are fixed you will not have to worry about rising interest rates.

To find out if Equity Release is the right option for you. The advantages and disadvantages need to be explained in detail to you. We believe in giving you a full understanding of the different types of schemes and with our experience and knowledge we recommend the right option to match your personal situation.

Residential Remortgage
Residential Home Mover Mortgage
Residential First Time Buyer Mortgage
Bridging Finance
Residential Buy to Let Mortgage
Commercial Mortgage
Equity Release

Mortgage Capacity Assessment

Our addresses:

The Techno Centre,
Puma Way, Coventry, CV1 2TT

Office Hours:

Monday to Friday 9am to 6.30pm

Communications:

Tel – 0845 0179 578
Fax – 0845 0179 579
Email – office@simpsonfs.co.uk