What is Equity Release uk?
We understand that as you enter the later years in life, you may wish to benefit from the seeds that you have sown. As such, we are able to assist you with your equity release UK matter in order to realise the equity in your home. Most equity release UK schemes operate so that an agreed amount of interest is payable for the amount released, which is often quite a bit higher than standard mortgage interest rates. This is due to the fact that there is no certainty for the lender when the money will be repaid. Equity release UK means that you can use your house or any object with capital value and gain either a lump sum or steady income, by using the value of your house. At a later stage, usually when the homeowner passes away, the income-provider must be re-paid.
What You Need To Know About Equity Release UK
The equity release UK company will usually place a cap on the amount that is repayable to them, either on the sale of the property or if you need to go into a nursing home or upon your death. We appreciate that this is a very sensitive matter and as such we are happy to provide provisional advice relating to equity release UK matters. There are many benefits associated with equity release UK, including that it can decrease how much your estate pays on inheritance tax. What’s more, clients can remain in their home and never have to make any repayments. Despite this, equity release UK comes with a number of disadvantages, such as reducing how much can be left to charity and equity release UK can have an impact on any benefits that the borrower is entitled to.
Equity release UK is made up of two plans; lifetime mortgage and reversion plan. A lifetime mortgage is the more popular plan of the two and is when the homeowner remains the owner of the property, but the property is still charged with the loan or mortgage repayment. The latter plan, reversion, is when the homeowner sells part or all of the property to the provider of equity release UK and in return, they get to remain in the property rent-free.
Today, the equity release UK market is regulated frequently, and the two plans fall under the FCA (financial conduct authority). Typically, when people take out one of the equity release UK plans, they use a lifetime mortgage, which doesn’t require any repayments, but it depends on which lifetime mortgage you opt for.
At Preuveneers, we will help you in any way we can with equity release UK matters. We will ensure that you understand everything to do with your plan and will always legally support you. For further information or to discuss an equity release matter please contact Kelly Cirillo, who has specialist knowledge in this field due to being part of our property law solicitors, on 020 8646 4885 or email her at Kelly@p-llp.net.