A conversation about Equity Release
There are many alternative equity release arrangements available that allow you to access your property wealth without having to move. During our initial discussions, we will provide you with an overview of the features and benefits for each type of arrangement, ensuring you understand your options.
A Lifetime Mortgage is a mortgage that does not require monthly repayments. You retain ownership of your home and the interest on the loan is rolled-up (compounded). The loan and compounded interest are repayable when you die or move into long term care. You can opt to make monthly repayments on certain plans, within agreed limits, in order to control the roll-up of interest. In the case of a couple, the repayment of the lifetime mortgage is not due until the surviving spouse dies or moves into long-term care.
Drawdown Lifetime Mortgage
A Drawdown Lifetime Mortgage allows you to release a smaller lump sum from your property, with a cash facility that you can draw upon as and when you need it. Interest is only charged on the funds that have been released. When you decide to release additional funds from the cash facility a new rate of interest will be applied to the amount you borrow.
Retirement interest only mortgage
Retirement Interest Only Mortgages (RIOs) allow you to borrow against your property and only make monthly interest payments. With RIO mortgages, you are only required to repay the loan when you sell your property, die or move into long-term care. Unlike standard interest only mortgages, you only have to prove that you can afford the interest payments. Most lenders will allow the transfer of a RIO mortgage onto a roll-up lifetime mortgage should circumstances change.
A Home Reversion plan allows you to sell all or part of your property in return for a cash lump sum (or regular payments) and a lifetime lease, ensuring that you have the right to reside at the property, rent free, for the rest of your life.
IHT LIABILITY REDUCED IMMEDIATELY
EQUITY RELEASED WILL CREATE A DEBT AGAINST YOUR CLIENT’S ESTATE
CAPITAL RELEASED FROM YOUR PROPERTY IS TAX FREE
NO CONTRACTUAL MONTHLY REPAYMENTS
HELPING TO INCREASE CASH FLOW
FIXED INTEREST RATES
LIFETIME MORTGAGES WILL HAVE FIXED RATES OF INTEREST FOR THE LIFE OF THE LOAN
DEBT WILL NOT EXCEED VALUE OF PROPERTY
NO NEGATIVE EQUITY GUARANTEES LOAN WILL NEVER EXCEED THAT VALUE OF YOUR HOME
Get in touch
What can you expect when you contact John Lamb Hill Oldridge? In the first instance, we will set up a no obligation initial meeting with one of our experienced equity release specialists. During this meeting we will explore your situation along with any specific questions you may have about your finances before discussing the various options available.
10 Lower Thames Street, London, EC3 6AF
+44 (0) 20 7633 2222