Equity Release, Lifetime Mortgages or A Home Reversion Plan from Thomas & Co
A Leading Independent Mortgage Broker

What is Equity Release

Equity release enables homeowners aged over 55 to release cash from their properties while being able to continue to live in their home until they die or enter long term care.

Equity Release Schemes are a range of products often referred to as a Lifetime Mortgage, Equity Release Mortgage, or a Home Reversion Plan, all allow the homeowner to raise tax free capital against the Equity in their home.

Lifetime Mortgage 

A Lifetime Mortgage, is available to those aged over 55 and are used to release cash from your home by taking out a Lifetime Mortgage which is a loan secured on your property which does not need to be repaid until you die or go into long-term care. A Lifetime Mortgage enables you to obtain a Tax Free Lump Sum from your home while you continue to live in it.

Home Reversion Plan

A Home Reversion Plan is available for the over 60’s and involves you selling all or a percentage of your property, in exchange for either a regular income or a lump sum or a mixture of both. A Home Reversion Scheme allows you to stay in your home as a tenant but pay no rent.

As an example, if you sell 50% of your property to a Home Reversion Provider then when the property is sold the Home Reversion Company would keep 50% of the proceeds.

Home Reversion Scheme is just one form of Equity Release Schemes we offer, and our staff will advise you on the best type of plan for your individual circumstances.

Lifetime Mortgage or Home Reversion Plan

While Lifetime Mortgages are the most common form of Equity Release, Home Reversion Plans can be right for some people. We appreciate that everyone’s circumstances are different and here at Thomas and Co we will take the time to explain in detail all the options available and decide which type of scheme is best for you.

What is Equity Release for The Over 55’s

Equity Release for the over 55’s allows homeowners to release tax-free cash tied up in their home. The amount of equity which can be released is based on your age and the value of your home. Provided you are over 55 then we have a variety of  plans to help you and deal with all the major Equity Release Companies. Money raised could either be as a lump sum, regular lump sums or a combination of both.

Is Equity Release a Good Thing?

Equity Release can be a good thing for those needing extra cash in later life. Money raised via a Lifetime Mortgage or Home Reversion Plan could be used for any reason such as, paying for home improvements, helping family members, repaying debts, or simply toping up your income. Customers should be aware that releasing equity will devalue your estate and reduce any inheritance for your family.

Pitfalls of Equity Release

An Equity Release Plan will give you cash and/or regular income, the downside to any plan is that the money released will need to be repaid when you die or enter long-term care which will impact the value of your estate when you pass.

What can the money be used for?

Money raised by Equity Release is not only tax free but can be used for anything you need. Commonly our clients use the money for the following reasons:

  • Help family
  • Repay Debts and Settle Mortgages.
  • Purchase New Properties
  • Home Improvements
  • Holidays
  • New Cars
  • Care Needs
  • or simply to supplement their income.

How much cash can I raise with Equity Release?

As a rule, the maximum equity which can be released from a property is 59% of its value, other factors that could reduce this would be your age and property condition.

Age Amount of Equity
55 – 59 33 to 44%
60 – 69 39 to 50%
70 – 79 50 to 55%
80 + 57 to 59%

This table provides an indicative guideline based upon mortgages arranged from our panel of lenders. To obtain a formal quotation of the Equity you could achieve please get in touch on 01455 238 650 or complete the form opposite to have one of our staff call you back directly.

Equity Release Advice

Equity Release is a specialist product, and we are proud to be members of the Equity Release Council, so whether it is a Lifetime Mortgage or Home Revision Plan you can be assured that the Equity Release Advice provided at Thomas & Co is to the highest of standards. To discuss if Equity Release is the right option for you, please get in touch today.

If you are interested in seeing the complete rules and guidance on the Equity Release Council’s website, click here.

Thomas & Co Mortgage Advice Ltd. Hinckley, Leicestershire

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