Equity Release

For many people, their property is their biggest asset. Unlocking this value via equity release is an option being considered by an increasing number of over 55s as a way to help financially plan for retirement. Equity can be released via a lump sum or in stages via drawdown to help provide an additional source of funds or income in later life, with a growing choice of product features and flexibilities .   

 There are two main types of equity release products. 

• Lifetime Mortgage - You can borrow against the value of your home which is like a standard residential mortgage. You will retain full ownership of your home and any interest on the loan can be paid as you go along or rolled up with nothing to pay until the end. The loan and any interest outstanding are then repaid by your estate when you either die or move to permanent long-term care (or in the case of a couple the last person living in the home).  
• Home Reversion Plan- The is where you would sell all or part of your home in exchange for a lump sum or a regular monthly income  while retaining the right to remain in it, typically rent free. You will know precisely what portion of your property you have parted with and, equally, what has been ring-fenced for later use if that is what you have decided to do, possibly to leave in a Will. The percentage you retain will always remain the same regardless of the change in property values, unless you decide to take further cash releases. At the end of the plan your property is sold, and the sale proceeds are shared according to the remaining proportions of ownership. 

Both Lifetime Mortgages and Home Reversion Plans types are regulated by the Financial Conduct Authority (FCA).  

Upton Financial Advice offers Independent lifetime mortgage advice on Lifetime Mortgage options for Equity Release purposes only.

All our products offer two very important guarantees...

• A guaranteed right to remain living in the property that you have released equity from, either for life or until you need to go into long term care.
• No Negative Equity Guarantee - which essentially guarantees that the amount to repay the equity release plan on death or entry into long term care can never exceed the value of the property itself, and so no debt can ever be left behind for your beneficiaries from the equity release plan.

Equity release can be used for a variety of purposes. 

These can include: -

• Adapting / improving your home to enable you to remain living in it independently for longer
• Paying off debts, such as outstanding mortgages, credit cards or personal loans 
• Paying for help around the home, including domiciliary social care 
• Purchasing a new car or other ‘large ticket’ item 
• Providing financial assistance to your children and grandchildren – perhaps with a deposit on a house or to help them through university 

A lifetime mortgage is a long term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate

You may have to pay an early repayment charge to your existing lender if you remortgage.  

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £500 for Equity Release.