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Retaining ownership with Equity Release
Retaining ownership with Equity Release
“Will I still own my home?” is a frequently asked question by people considering Equity Release in the UK. When making such a significant financial decision, it is essential to understand the facts about ownership and Equity Release, as the answer to the question depends on which plan you choose.
Lifetime Mortgages - offer the most popular form of Equity Release in the UK. They enable homeowners aged 55 and over to release money from their homes with an interest-only mortgage. Like a traditional mortgage, the lender places a charge against the property, but you remain the legal owner of your home.
Confusion often arises because of the alternative Home Reversion Plan option. With this form of Equity Release, the homeowner sells a share or all of their property to a provider, in return for a lump sum or instalment payments. In this case, you would no longer legally own all or part of the property, but you have the right to remain living in your home rent-free for the rest of your life.
This distinction is why most people opt for a lifetime mortgage, as it allows them to access funds while keeping full ownership of their home.
How does a Lifetime Mortgage work?
Lifetime Mortgages enable you to borrow money against the value of your home. The key characteristics are:
No monthly repayments are required - The loan plus interest is repaid when you sell the home, move into long-term care, or pass away.
You retain 100% ownership - The homeowner retains ownership and can continue living there for the rest of their life.
Interest roll-up or repayment options - Some plans allow you to make monthly interest payments to prevent the interest accumulating and the loan from growing too large.
Guaranteed no negative equity - The Equity Release Council's safeguards ensure that you’ll never owe more than the value of your property.
Who is eligible?
To qualify for a Lifetime Mortgage, you must be aged 55 or older.
You must own a property that meets minimum lender requirements.
You should be looking for a way to unlock equity in your home without needing to sell or move.
What are the main benefits of Equity Release?
You can release tax-free money from your home to enjoy in your retirement, as you wish.
Unless you choose a plan that allows voluntary payments, monthly repayments are not compulsory.
With a Lifetime Mortgage, you retain full homeownership.
There is no need to move away from the town and home that you love.
What else should you consider?
If unpaid, the interest will compound so the debt can accumulate significantly over time.
The loan is repaid from the sale of your home which could impact your family’s inheritance.
Some plans charge early repayment fees, should you decide to repay the loan early.
Access to equity release may impact your eligibility for means-tested benefits.
Is Equity Release Right for You?
Equity release can be a valuable financial solution for those looking to improve their retirement lifestyle. However, everyone is different, and it is important to understand how it works. It is essential to seek financial advice to help you make an informed choice that aligns with your goals and financial security.
Committed to helping local residents fulfill their retirement goals.
If you’re a homeowner in Ascot, Windsor, or beyond and are considering equity release, Autumn Financial is here to guide you.
With Toby Wheeler’s expertise and our unwavering commitment to client satisfaction, you can trust us to provide the support and advice you need to make informed, confident decisions about your financial future.
WHO ARE WE?
CM Finance Limited is an appointed representative of Connect IFA Ltd who are authorised and regulated by the Financial Conduct Authority (FCA) registration number 441505. The FCA does not regulate some Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
Contact Us:
Address: 42 St. Lukes Road
Windsor, SL4 2QQ
Phone number: 01753 358007
FEES:
There will be a fee for mortgage advice, the precise amount will depend upon your circumstances. Your Consultant will confirm the amount before you choose to proceed but we estimate it to be £999.
COMPLAINTS:
It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department; Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service
financial-ombudsman.org.uk
CONSIDER:
Equity release plans are not right for everyone and it is important that you fully consider your options and receive impartial financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you need to be sure it is one that meets your needs. If you would like to end your lifetime mortgage early, then you may have to pay a substantial early repayment charge. A professional adviser can help you to choose the plan that is right for you. To understand the features and risks, ask for a personalised illustration.
COMMISSION DISCLOSURE:
We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement. CM Finance Limited is registered in England and Wales under reference number 13751517
Registered address Merrimen Oakley Green Road Windsor Berkshire SL4 4PZ