If you are a homeowner over the age of 55 and would like to unlock the value of your property, then it’s worth considering equity release.
What is equity release?
Here at St Helens Law, the most common form of Equity Release that we see today is a Lifetime Mortgage. As the name implies, this kind of mortgage is one that lasts you a lifetime. This is similar to a normal mortgage, but instead of you to repay it at some point in the future, it is repaid from the value of your home when you pass away. This means that you never need to worry about paying this back or having to repay it whilst you are alive.
As well as this, you also have complete safety and protection as all plans that are recommended to you are Equity Release Council approved, meaning that you have the absolute legal guarantee to live in your home for the rest of your life.
Drawdown lifetime mortgage
The most popular type of lifetime mortgage that we encounter at St Helens Law is a “drawdown mortgage”. This means that rather than borrowing and being charged interest on a lump sum you may not need from day one, you can elect to simply only borrow the amount you require from the outset. However, by using this method you have access to a reserve or drawdown facility in the future as and when you need it.
This means that you are charged for the money that you actually borrow and not the money that sits in your drawdown account, allowing you to save money in the future when using this lifetime mortgage. This also allows your beneficiaries and loved ones will get more of your estate when you pass away.
By having a reserve facility often gives clients invaluable peace of mind by having access to money in the future for emergencies or any other important reason without having to pay for it.
More money for retirement
Everyone looks forward to a retirement spending time doing what they enjoy most at their own leisure. That dream holiday you wanted but could never take enough time off work for, the endless list of renovation ideas for your home or even helping out your family, the possibilities are endless. One of the main benefits of using equity release is that the money you raise can be used straight away, for any reason. This means you can start enjoying the retirement you always dreamed of.
No worry about paying it back
With a Lifetime Mortgage, there are no payments that you have to make at all. This allows your valuable income to stay clear from erosion by not having to make payments on a regular basis. In many cases equity release is used to pay off a normal mortgage, loan or other debts. This means that money set aside each month to make repayments can be saved and better spent elsewhere.
The interest that is charged is simply added onto whatever you owe and ultimately repaid from the value of your home. This is done either when you pass away or are taken into residential care, so while you are alive you do not have to worry about making any payments or repayments from your income. This can put your mind at ease and allow you to enjoy a stress-free retirement.
Contact us
Are you looking for expert equity release advice in St Helens? Take a look at our page on equity release in St Helens for some more information and if you’re ready to put forward an equity release plan then contact our team here at St Helens Law.
Fill out our online enquiry form to arrange a free consultation, or give us a call on 01744 742360 to speak to one of our experts. You can also send an email to info@sthelenslaw.co.uk and we’ll be sure to get back to you as soon as we can.