An Equity Release mortgage enables those that are, or soon to enter retirement an ability to access cash that is tied up in their property. Following the release of equity, the plans then run for the rest of your life, hence the Lifetime Mortgage tag and the loan is repaid out of the future sale of the property.
For example, if you're applying as a couple, when the surviving partner is admitted into long term care or sadly passes away. You could release a Tax Free lump sum - which can be used as you wish - without reducing your retirement income. Opposed to taking all of the available equity in one lump sum you can access the money as and when needed.
For example, if you're applying as a couple, when the surviving partner is admitted into long term care or sadly passes away. You could release a Tax Free lump sum - which can be used as you wish - without reducing your retirement income. Opposed to taking all of the available equity in one lump sum you can access the money as and when needed.
Services
The Top Mortgage Solutions was established around one objective, individual customer care. We understand that no two circumstances are ever the same, taking time to understand why a person is considering Equity Release and establishing between an individual's wants and needs. We believe that without this it would be impossible, and inappropriate to make a personal recommendation surrounding an Equity Release scheme.
A Lifetime Mortgage is only available to those aged 55 and over and utilises the value of your home as security for borrowing money, the main benefit being that you make no monthly repayments. This means that by utilising a Lifetime Mortgage you could release a Tax Free lump sum - which can be used as you wish - without reducing your retirement income.
Interest Only Lifetime Mortgages are similar to the Lifetime Mortgage being that you are able to access a Tax Free lump sum to do with as you choose. B. Allowing the monthly interest charge to be added to the loan and utilising a 10% per annum overpayment facility. Therefore, opting for an Interest Only Lifetime Mortgage you are paying the chargeable interest and the loan balance remains the same.
The Drawdown Lifetime Mortgage is a relatively new proposition to the Equity Release market and is currently proving to be the most popular. As with all Equity Release products the Drawdown Lifetime Mortgage allows you to access Tax Free lump sums which are secured against your home.
However, with the Drawdown Lifetime Mortgage the provider will calculate a maximum loan available to you based on the age of the youngest applicant - if applying as a couple - and the current market value of your home.Initially the minimum loan advance is 10,000 or 15,000 - dependent on the chosen provider - and from here on in it's over to you to decide as and when more funds are required.
However, with the Drawdown Lifetime Mortgage the provider will calculate a maximum loan available to you based on the age of the youngest applicant - if applying as a couple - and the current market value of your home.Initially the minimum loan advance is 10,000 or 15,000 - dependent on the chosen provider - and from here on in it's over to you to decide as and when more funds are required.
Home Reversion Plans currently make up less than 2% of Equity Release products taken out and presently are only available to age 65's and over. They are not short term commitments and not suitable for those wishing to buy back all or a share of their property during the term of the plan.
Providers of Home Reversion Plans purchase all or a share of your property in return for a Tax Free cash lump sum, meaning the Provider will either own the property in full or the percentage you decide to part with.In return you are granted a lifetime lease which gives you the security to live in your home rent free until the surviving partner (if applying as a couple) is admitted into long term care or sadly passes away.
Providers of Home Reversion Plans purchase all or a share of your property in return for a Tax Free cash lump sum, meaning the Provider will either own the property in full or the percentage you decide to part with.In return you are granted a lifetime lease which gives you the security to live in your home rent free until the surviving partner (if applying as a couple) is admitted into long term care or sadly passes away.
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