Equity release is a way of releasing the value tied up in your property without having to sell it and move to another home. You can either borrow against the value of your home or sell all or part of it in exchange for a lump sum or a regular monthly income. Some plans give you the option to “draw down” further equity (cash) at a later date, based on your requirements.
If I take out an equity release scheme, do I risk losing my house?
No. The amount of money you borrow against the value of your home, plus any rolled-up interest, can never go above the value of the property – when it is sold at the end of your plan – due to the No Negative Equity Guarantee safeguard upheld by Equity Release Council members. You will continue benefitting from the rises in property value in the years to come.
What is a no negative equity guarantee?
Products which fully meet the Equity Release Council’s Product Standards are required to feature a “no negative equity guarantee”. Put simply, this guarantee means that you, or more specifically, your estate will never owe more than the property is worth when it is sold.
How much can I borrow?
The provider will instruct a surveyor to give a professional valuation of your property that will define the amount that could be released. How much can be released is dependent on your age and that of your partner (if you are making a joint application) and the value of your property. Some providers may offer larger sums to those with certain past or present medical conditions, or even ‘lifestyle factors’, ie smoking habit.
Can I release equity from my home if I have not yet paid off my mortgage?
If you still have an outstanding mortgage on your property you will need to pay it off in full, either by using some of the proceeds from the equity you release or from other funds. Once that is done, the rest of the money you release can be spent as you wish.
If I take out an equity release plan, will I be able to move to another property?
Yes: equity release plans which comply with the Equity Release Council’s Product Standards give you the right to move to a “suitable alternative property”. This means a property which your provider would accept if it were setting up a plan for a new customer. There are some properties which providers would not be able to accept, usually because there would be restrictions on their ability to sell the property on the open market when the plan comes to an end. So, for instance, homes which are built in retirement complexes are not generally acceptable, because the provider would not be able to sell them on the open market.
Our charges are based the loan amount and the complexity of your individual circumstances. We will provide you with a free initial consultation and we will always explain what you will be charged before you decide to proceed with an application. We offer a bespoke service and our fees can vary. Our usual set fee is only paid on completion and is £995.00. If your circumstances are more complex, we may charge a higher fee. Our maximum fee is 1% of the loan value.
These fees apply to regulated mortgages. Certain mortgages, primarily most buy to let and commercial mortgages, are not regulated. Fees for non-regulated mortgages can vary depending on your requirements and circumstances.
Wills, IHT, Trusts, Power of Attorney and Funeral Plans are not regulated by the Financial Conduct Authority.
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage. Lifetime Mortgage Market is a trading style of One Stop 4 Equity Release Ltd which authorised and regulated by the Financial Conduct Authority. FCA No 952887 One Stop 4 Equity Release Ltd is a registered company in England and Wales with Company Registration Number 13452621. Registered Office: The Stable Yard, Vicarage Road, Stony Stratford, Milton Keynes, MK11 1BN.
We also confirm that any advice required outside of Equity Release Lifetime and Retirement mortgages will be referred to our authorised specialists.
The Financial Conduct Authority does not regulate some investment mortgage contracts. Calls may be recorded for training and compliance purposes.
This is a Lifetime mortgage, to understand the features and risks, ask for a personalised illustration.
Under no circumstances should any of the information contained within this website be construed as "advice". You should seek professional advice in respect of your own circumstances.
The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.