Equity release

Equity release can help you improve your living standards in your later years by releasing the value stored up in your home. Your house is likely one of your most valuable assets, so, by using equity release, you can make a real difference to your options in retirement, it could contribute towards home improvements or help your children get on the property ladder. With part of the value of your home turned back into cash, opportunities will be available to you that may not have been a possibility before.

There are two main types of equity release, these are lifetime mortgages and home reversion plans. A lifetime mortgage is where you take out a secured loan against your home, contrastingly a home reversion plan is where you sell a portion or all of your home to a provider in exchange for a lump sum or regular payments.

Taking out a lifetime mortgage does mean that you will leave a lower and possibly no inheritance from the sale of your home. It may also have a tax impact and affect whether you can still claim certain welfare benefits. Because equity release can be complicated, you need to take financial advice before deciding to go ahead.

Here at Argentis, we can help with lifetime mortgages, but we do not advise on home reversion plans.