Equity Release

Why do people use equity release?

People use the cash released for all sorts of things in life. You could use your equity release to:

  • Get your home just the way you want it with a brand new kitchen, bathroom or modifications to the layout.
  • Enjoy a round-the-world trip, cruise of a lifetime or pay a visit to relatives now living abroad.
  • Help out your nearest and dearest with a deposit for their first home or cash to help furnish it.
  • Upgrade your car to something larger for taking grandchildren out and about.
  • Free up your monthly expenditure by paying off your mortgage or other debts

Our expert partners are available to help you make an informed decision and will tell you straight away if equity release isn’t right for you.

Being independent means they search the whole market to find the best plan for every client.

The benefits of equity release:

Enjoy your money now
Equity release can provide a way to access some of the wealth in your bricks and mortar for you to enjoy today.

No need to move home
With equity release, you could access some of the value tied up in your home without having to move house. There is no need to downsize or go through the stress of relocating just to take advantage of your home’s value.

Tax-free cash
Any equity you release from your home either as a lump sum or as further ‘draw down’ releases will not incur any capital gains tax or income tax. However, if you put the money into an account or investment, you will then be taxed on any gains.

Maintain an inheritance
If ensuring that you are able to still leave an inheritance to loved ones is important, there are certain equity release plans that can factor in your wishes.

Flexible plans
There is a wide variety of equity release plans that offer scope and flexibility. The adviser from our partner, can explore the possible options such as interest-only plans or those which allow you to make partial repayments, so there is less debt to be paid off at the end, if this is a concern for you.

We are not authorised to provide advice for equity release products. This will be passed to a suitably qualified and authorised specialist. To understand the features and risks please ask for a personalised illustration. An equity release product will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to state benefit. Depending on the adviser you are referred to, there may be a fee for equity release advice, the value of which will be confirmed at any initial meeting.

Think carefully before securing other debts against your home.

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.

Mayfair Financial and First Complete Ltd are not responsible for the advice supplied by the Equity Release provider, however, through experience, we are confident that the preferred partner we recommend is competent, pro-active and focused on providing a high level of service.

How does equity release work and what to consider before you take out a plan

Releasing cash from your home is a big decision to make. You should research all your alternatives and decide what finances you need in retirement. If you do decide you want to explore equity release further you should follow these six steps to be sure that it’s right for you.

Find an equity release adviser who is experienced in equity release and will help you to consider alternative means of raising funds. They should assess your personal situation and search the whole market to find the best plan for you. All of our partner’s advisers are equity release specialists who have undertaken extensive equity release training.

Discuss equity release with your family and intended beneficiaries to your Will. They might be able to help you raise the money you need.

Based on your individual circumstances, your adviser will prepare a recommendation for you. They will also provide you with a personalised illustration which will detail how equity release could work for you.

Find a solicitor who specialises in equity release. They will not only sort out all the legal details but will make sure you fully understand how the plan works and all the implications before you go ahead.

Once you and your adviser have decided on the right plan, your home will be valued and you will be sent an offer confirming the details of your equity release plan.

If you are satisfied with all these details of the offer you can agree to take out an equity release plan. You will receive your money immediately after completion of the mortgage.

  • Be aged 55 or over – both applicants, if a couple.
  • Own and live in the property you wish to release equity from.
  • Be able to release enough equity from your property to enable you to fully pay off any outstanding mortgage or secured loan.

Your property must be:

  • Valued at least £60,000.
  • In the UK.
  • Either freehold or leasehold, with a minimum lease period of 75 years remaining.
  • Of standard construction and in good condition.

  • Equity release plans, which may be lifetime mortgages or reversion plans, aren’t always right for everyone. Our preferred partner welcomes family members to attend your consultation to find out how their inheritance would be affected. All plans will reduce the value of your estate.
  • Our partner’s specialist advisers will use unique benefits software to find out which state benefits, if any, would be affected. Equity release may affect your tax position and could affect your entitlement to means-tested benefits.
    Because equity release is a lifetime commitment, it is only expected to be repaid upon your death, or entry into long-term care. Our partner will explain the early repayment charges, which may apply if you decide to repay the plan early.
  • Our partner’s expert advisers will also help you to understand how the compound interest on a lifetime mortgage adds up, and how the amount you owe can grow quite quickly. Remember a lifetime mortgage is secured against your home. You should always think carefully before securing a loan against your property.
  • Our partners offer a full advice and recommendation service to ensure you get the best plan possible. Unless you decide to go ahead, our partners service is completely free of charge, as their typical advice fee of 1.65% of the amount released would only be payable on completion of a plan.
  • Our partner is also proud to be a member of the Equity Release Council, ensuring all members of the public can obtain quality advice on equity release from specialist advisers.

Whatever your particular reason for wanting extra cash, remember equity release is not right for everyone. Before you go ahead it’s important to have considered the alternatives. A good equity release adviser should always discuss these with you.

Our partner offers competitive rates of interest, matched by a ‘first class’ customer service, as they negotiate and arrange the most suitable option for meet your needs.

For more information or to arrange for our preferred partner to contact you
please get in touch