Home Equity Release Schemes

Why choose a home equity release scheme?

Home equity release schemes allow you to access the equity that is locked in your home. The income that you receive as a result of home equity release schemes can be used as you wish. It may be that you may wish to improve your home, help family members onto the property ladder or to simply supplement your income. Our financial advisers can discuss the reasons for you to consider a home equity release scheme in a free consultation. To request your free consultation to discuss your options please >click here.

Home equity release schemes – best advice

As with all financial arrangements it is vital that you fully understand how a home equity release scheme could affect you. The Financial Services Authority (FSA) suggests that before you consider taking out a home equity release scheme that you consult an independent financial adviser. Our fully independent financial advisers have a great deal of experience of this product and can advise if this is the best option for you. As we are not tied to any specific lender we have the ability to search the entire that market to recommend the home equity release scheme that best fits your needs. If you are interested in finding out more about home equity release schemes, please contact us..

Home equity release schemes – the tax position

The sums paid out as a result of home equity release schemes is paid out tax free to allow you to receive the full benefit of the equity in your home. There may be tax implications if this money is invested to provide you with an income. However, during a consultation with our advisers this will be fully discussed to ensure you are fully aware of the overall tax position. Home equity release schemes can contribute to cutting inheritance tax bills. In 2009 / 10, inheritance tax thresholds apply to everything remaining in the estate valued in excess of £325,000. Importantly, the figure includes the value of your home. Home equity release schemes are often utilised to mitigate the amount of this inheritance tax. They could be used, for example, to give a child or grandchild the deposit to buy their own property.

The range of home equity release schemes

There are a range of home equity release schemes. The main types of home equity release schemes are a home income plan where property is mortgaged and the cash raised is used to purchase an annuity, a lifetime mortgage where property is mortgaged and interest is added to the balance owing, which is paid off when the property is sold or a home reversion scheme where property is sold to a financial institution in exchange for a lump sum or monthly income. To find out more about equity release plans please contact us.

Free home equity release scheme consultation

Our advisers offer everyone a free consultation to discuss the merits of home equity release schemes to allow you to make a decision as to whether this is the right decision for you. To arrange a free consultation please >click here