Main points of Equity Release
- Youngest person must be over aged 55.
- No upper age limit
- Release equity from the value of your current home.
- Can also be used to purchase a property.
- What you borrow cannot increas so much as to exceed the value of your home (No negative Equity Gaurantee)
- Money raised is tax fee and can be used for any purpose.
- No requirement to make monthly payments although monthly payments can be made if you wish.
- Gauranteed to be able to stay in your property for life if that is what you want.
- Minimum amount id £15,000. May receive the amount either as a lump sum, a regular income or both.
- Loan does need to be paid back for reasons such as the last person going into long term care or you sell the property or the last person was to pass away.
- Loan does compound with interest added to the loan on a regular basis. A very general guide is that what you borrow will double over a 10 year period.
- Will reduce the amount your beneficiaries will receive in inheritance on your death from the property.
- Property cannot be used for commercial purposes