What is Equity Release?

Lifetime Mortgage is a generic term for a loan with an indefinite period.  It can be for a new house purchase or if the property is already owned, capital raising from it is referred to as equity release.  MoneyHelper provides an explanation of equity release and the range of products that let those over the age of 55 unlock the equity tied up in their home.

Many choose to release capital so that they can free themselves from debt, help loved ones with a house deposit or provide funds for their grandchildren’s education. Others make improvements to their home to make retirement more enjoyable or take a trip of a lifetime.

Whatever your reason is or if you just want to explore the possibilities our team will help you navigate the equity release options.

 Please Note: Equity Release may impact the size of your estate and it could affect your entitlement to future means tested benefits.  As these products are a lifetime mortgage (home reversion scheme), to understand the features and risks, you should always ask for a personalised illustration.

Why choose us?

Equity release is not for everyone.  We will look carefully at your circumstances and your reasons for wishing to release capital from your property.  If you have savings and investments elsewhere, we may recommend against equity release.  Equally if you do not have a specific need then this route may not be for you.

As independent financial advisers we look at the big picture, consider a range of future scenarios, such as whether at some stage you may wish to downsize, so together we can explore all the alternative options available to you.

We want to help you achieve your goals but not to your detriment, so we will take time to help you fully understand the arrangements and their consequences.  We will encourage you to discuss your decision with your family or someone you can trust.

The ultimate decision is yours.  While we will assist you every step of the way and recommend a product we believe is suitable for you, we will not pressure you into deciding.

Your home, key to your future?

Transparency

We know pricing is important.  We will let you know what our charges will be, in writing, at the outset and will also include them in our recommendation report.  We will take no action on your behalf without first agreeing our fees with you so there will be no unexpected surprises.

Simon Bignell one of our advisers.

Simon Bignell, DipPFS

 

What our clients say

Ernie & Maureen Carr

"We would like to take this opportunity to thank Alan Eddie for all the help and guidance that he gave my wife & I on the equity release at 104 we found him to be not only very helpful but also patient on our questions that we went over many times, nothing was too much trouble to him, once again Alan, many thanks"

- Ernie & Maureen Carr

Lucy & Richard

"Although my wife and I had read quite a lot about equity release it was quite apparent that we needed specialist help and the obvious move was to consult our financial advisers, Lewis-IFS, to guide us through the procedure which is not straightforward for those unused to such things. We’re so glad we did this because our adviser and a junior member of staff took us through all the “stuff” with patience and attention to detail as needed. They also were able to recommend a lender and a specialist (mandatory) solicitor who were equally as professional. Thank you, Lewis-IFS"

– Lucy & Richard

LH Purbeck

"I met with independent advisors from a number of local firms, and Alan Eddie was by far the most experienced, transparent and credible. The process is now complete and throughout Alan has been personable and professional. His advice has been supportive and robust, and he found me a good deal tailored to my circumstances. I would recommend him to people looking for help with Equity Release. Thank you again Alan"

– LH Purbeck

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Alan Eddie one of our experienced advisers.

Alan Eddie, DipPFS, Certs CII (MP & ER)

 

What we offer

A complimentary initial Lifetime Mortgage consultation.

Independent impartial advice  with a qualified, experienced and impartial adviser. They’ll get to know you, your individual circumstances and aims.

Before your consultation you will need to consider whether you may want to move or downsize or if you want to ring-fence some capital for your family to inherit. This will help your adviser make sure any recommended plans will meet your needs in the future.

Have Questions?

Why not speak to one of our experienced advisers.

Questions we are frequently asked about Equity Release

No. All members of the Equity Release Council offer a ‘No Negative Equity Guarantee’. This means that no matter how long the interest accrues the amount owing will never exceed the value of the property the plan is linked to. Once the loan and accrued interest has been repaid, any remaining funds will be paid to you or your beneficiaries. In the unlikely event that the property sells for less than the amount of the loan, the remaining balance will be written off.
No. All members of the Equity Release Council offer a ‘No Negative Equity Guarantee’. This means that no matter how long the interest accrues the amount owing will never exceed the value of the property the plan is linked to. Once the loan and accrued interest has been repaid, any remaining funds will be paid to you or your beneficiaries. In the unlikely event that the property sells for less than the amount of the loan, the remaining balance will be written off.
No you won’t. With a lifetime mortgage the capital borrowed, plus the accruing interest roll up and are repaid on your death or when you move into care, so there are no monthly repayments to be made. However, some products now allow you to meet some or all of the monthly interest cost meaning you can stop the loan balance increasing. It may also be possible for you to pay back a percentage of the loan each year, helping reduce the interest and capital owing. Your financial adviser will be able to source the plan which is most suitable for all your requirements.
By taking a portion of your equity now there will be less available later and your estate value will be reduced. Providing a legacy for future generations may be important to you.   If you want to ensure that there is something left you can ringfence some of the value of your home. Your financial adviser will be able to make appropriate recommendations should this be the case. However, many people chose to use the capital released to provide their loved ones with an early inheritance – they get the added benefit of being around to see the benefit of this legacy in action.
No you won’t. The money taken out of a property with a lifetime mortgage is tax free.
Yes you will. How you decide to spend the released capital is entirely up to you. You could use the funds to pay off existing debts, gift a sum to other family members, take a holiday of a lifetime, make improvements to your home or just supplement your regular income – it’s up to you.
Yes you will. Most lenders allow you to transfer your current loan and product to another property providing it meets their lending terms.

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