private wealth mortgages - equity release

Equity release mortgages allows homeowners over the age of 55 to release the equity in their homes, but still allowing them to live there.

Most schemes work by giving you a loan on the value of your property. You receive the loan as cash usually on a monthly basis but sometimes as a lump sum. Then the company that loans you the money will receive it either by selling you property after your death or if you sell your property ie to go into a care home.

You may want to investigate other possible options before raising income from your home ie

Other investments or assets to boost your income
You may be entitled to state benefits that you are not claiming
You may want to downsize or consider sheltered accommodation
If you need help with your repairs or adaptations to your home your local authority may be able to help. Alternatively the Home Improvement Trust might help

Other things to consider

You need to check if the scheme will allow you to move in the future.

If you have someone move in the scheme would still come to an end when you die and the house would probably have to be sold.

The older you are, the larger the amount of money you are likely to receive from a scheme. This is because your life expectancy is lower.

If you are receiving a means-tested benefit such as Pension Credit, Income Support or Council Tax Benefit, the income from these may affect your entitlement.

The scheme can reduce your inheritance tax liability but may considerably reduce the size of your estate. You may want to discuss it with close family members.

You can get further information from the following websites

www.fsa.gov.uk

www.ageconcern.co.uk

Please contact us to discuss you requirements and we can provide a personalised illustration.