Equity release often refers to a range of products allowing you access to the equity tied up on your property, and is available to those over the age of 55. You have the choice of being able to release the cash as a lump sum, several smaller amounts or a combination of both. Equity release options are sometimes known as a ‘lifetime mortgage’.
A belief is that you need to pay ‘rent’ to the equity release provider. For lifetime mortgages, you may be able to choose whether to pay back interest or let it build up, and the loan is usually only paid back when you die or if you need to sell the property to pay for care home or medical fees.
A big attraction of using equity release is to have the ability to pay off your mortgage if this is still outstanding, it can help to reduce your monthly payments or completely clear them. however, it’s important to note that if you are hoping to leave property to your children/grandchildren, equity release could erode their inheritance.
It’s imperative to seek professional advice before entering into any equity release product. Contact LR Financial Services today to ensure you obtain the best advice regarding equity release.