Equity release is a process that allows you to access the equity tied up within your home which will be paid to you either in a lump sum or in regular payments. This is available to you if you own your own property and are over the age of 55.
There are two forms of equity release:-
- Lifetime Mortgage – This is where a mortgage is secured against your property, provided it is your main residence, while you retain ownership of the same. The loan amount and any accrued interest is then paid back when you die or when you move into a long-term care placement.
- Home Reversion – This is where you sell part or all of your property to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living at the property rent free until you die, but you have to agree to maintain and insure it. At the end of the plan your property is sold and the sale proceeds are shared according to the proportions of ownership.
We would recommend that you seek assistance from a specialist lawyer before proceeding. Our team of conveyancers can offer you advice and provide guidance to help you in this process.