Disclaimer
Prince Wealth Limited is a marketing agent for developers and other third party investment providers and whilst we endeavour to ensure the accuracy of information contained on our website, including figures and forecasts at the time of publication, Prince Wealth Limited does not guarantee or take responsibility for their accuracy. Prince Wealth Limited cannot offer financial advice and is not authorised by the Financial Conduct Authority to do so. Please be aware, that purchases of overseas properties and other overseas investments are not regulated by the Financial Conduct Authority. All investors should seek relevant advice in relation to their personal circumstances before proceeding. Prince Wealth Limited acts as a promoter and/or introducer for third parties. Authorisation from the Financial Conduct Authority is required for any advice on SIPPs. Prince Wealth Limited recommend you seek independent pension advise from FCA authorised pensions advisers. Please refer to the FCA website www.fca.org.uk for this purpose. Quoted figures are not guaranteed and are dependent upon investment performance. Past performance is not a guarantee of future performance.
Equity Release
There are a range of financial plans available to homeowners aged 55 and over who wish to use
the equity tied up in their homes to improve their lives now but without having to sell/lose
their homes to do so.
Lifetime Mortgages – are where you can take a loan out against your property to pay you an
immediate lump sum, an income or a combination of the two. You do not have to pay the
monthly interest repayments, instead simply repaying the mortgage plus interest owed when
your property is sold, which could be when you and your partner (if relevant) have both died or gone into long-term care.
Lifetime Mortgage with drawdown facility – a total sum that you can borrow/receive is agreed at the outset however you can opt to then draw down that sum in smaller stages as and when it suits you. This way you reduce the overall interest you have to repay when the property is sold (as you only pay interest on the ACTUAL money borrowed, not the whole amount pre-agreed). The logic of this approach is that if you do not need the full lump sum available to you immediately you can simply access it up to a level that you have been pre-advised about as and when you need it.
Home Reversion Scheme – enables you to sell part or all of your home in return for a tax-free lump sum or a regular income and is normally available to homeowners aged 65 and over. You will normally receive a below market value offer for your property. In return you retain the right to stay in your home rent-free until you die or move out permanently however, when this happens your home will then have to be sold (so you cannot pass onto beneficiaries, for example) and you or your Estate will receive the value of your share that you have left in the property. The value you receive will be the amount your home is sold for minus the percentage share you sold to the Equity Release provider originally.
NOTE: Whilst the right option for you is entirely down to you and what best addresses your requirements it is essential that you seek professional advice when the time comes because each form of equity release has its pros and cons and it is critically important you understand each and what it means for your future.
Equity Release isn’t the right solution for everyone however it is an extremely useful option to consider when considering your future income and retirement options.
Releasing cash from your home reduces the value of your Estate and the amount of inheritance you leave, so you should consider whether to involve your children and dependants in this decision.
You should also make sure your Will is up-to-date and reflects this change in the ownership structure of your property. It is also important to ensure you understand the tax and IHT implications of any Equity Release decision you ultimately make.
If you would like to know more about Equity Release, simply click on the link below and complete the quick enquiry form or email us at enquiries@princewealth.co.uk and we will be in touch.