Equity Release Cornwall
Equity release is a financial product that allows homeowners in Cornwall and beyond to access the equity (or value) in their property while they continue to live in it. This can be an attractive option for people who are retired or nearing retirement, as it can provide a source of income or capital to fund expenses such as home improvements, travel, or supporting a family member. It can also be a way for homeowners to release funds that are tied up in their property and use them for other purposes.
There are two main types of equity release schemes: Lifetime Mortgages and Home Reversion Plans.
Lifetime Mortgages
We offer advice on lifetime mortgages, which make up the vast majority of the equity release products available in the market. This is because you will retain ownership of your home with a Lifetime Mortgage and, just like a standard mortgage and this is a key feature for most of our customers. You can choose to receive the funds as a lump sum, regular payments, or a combination of both.
You can also choose to make interest payments or allow the interest to roll up and be paid when the loan is repaid. With a lifetime mortgage, you retain ownership of your property and can continue to live in it for as long as you like. The loan and any accumulated interest are repaid when the property is sold, usually when the homeowner dies or moves into long-term care. Lifetime Mortgages normally have a lower rate of interest than home reversion plans.
Home Reversion Plan
A home reversion plan involves selling a percentage of your property to a lender in return for a lump sum or regular payments. You can continue to live in your home for as long as you like, but you will no longer own the percentage of the property that you have sold. When the property is sold, the lender will receive their share of the proceeds. In some cases, customers may be able to borrow more money with a Home Reversion plan but you are giving up ownership of some or probably all of your home. If we think that a home reversion plan is a better option for you then we can refer you to a third party.
Important Considerations
It’s important to carefully consider the terms of an equity release scheme and to seek professional advice before making a decision. Equity release is a long-term commitment and the terms of the loan or plan may affect your ability to sell the property or pass it on to your heirs. There may also be fees and charges associated with the scheme, which can add to the overall cost. It’s also worth noting that equity release schemes may not be suitable for everyone. They may not be available to homeowners under a certain age, and they may not be the best option if you have a large outstanding mortgage or if you are planning to move in the near future.
If you live in Cornwall and are considering equity release, it’s a good idea to speak with a specialist equity release broker such as ourselves. We can help you understand the different options available to you and advise you on the suitability of equity release for your individual circumstances. We can also help you compare the different schemes and features such as lump sum versus drawdown and ensure that you choose the right options for you. We can also refer you to specialist tax planners to advise on the implications of the different options if needed.
Why Choose Us?
As authorised members of the Equity Release Council we are a qualified, specialist firm who abide by the Council’s rules and have signed up to it’s Statement of Principles – meaning we always put the customer at the heart of everything we do. We also have a transparent, flat advice fee of £795 per case on completion meaning you will always understand how much you will pay, regardless f the size of your mortgage and if you don’t take the mortgage, you pay us nothing.
Conclusion
It’s important to remember that equity release is a serious financial decision and should not be entered into lightly. It’s always a good idea to carefully weigh up the pros and cons before making a decision, and to seek professional advice if you are unsure. However, for some homeowners, equity release can be a useful way to access the equity in their property and use it to fund their retirement or achieve other financial goals.
Equity release is designed to help customers aged 55 plus who either own their property outright or have relatively small mortgages left to pay, although you can use it to buy a property as well. You can either take out a loan against your home or sell part or all of it to a third party who gives you the right to live in it for life. The loan is repaid upon your death or if you move into long term care and are unlikely to return.
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.