About Equity Release
'Equity' is known as the difference between the value of your property and any loans secured against it. The process of equity release is well described by the London Institute of Banking and Finance as "the transfer of an interest in the property from the owner to a third party in exchange for a cash sum or an income". Basically, an equity release provider will give you tax-free cash in return for an interest in your property.
All of this can sound rather complicated, which is why the Financial Conduct Authority considers entering into, administering, arranging and advising on equity release plans, a regulated activity. The advisers on our panel are authorised to provide advice in regards to lifetime mortgages and home reversion plans by the Financial Conduct Authority and most are members of the Equity Release Council, for extra peace of mind. Not only is the provision of financial advice a requirement of all equity release plans, but the advisers on our panel are dedicated to passing on their knowledge and understanding, to make sure that you only enter into a plan that is suitable for you.
Equity Release Broken Down
Mary is in her late 60's, she has worked hard all of her life only to find herself in the position of owing £50,000 toward her interest only mortgage and does not have the cash to pay it off, despite owning a house worth £250,000. With no cash, and a small pension that only provides enough to live on, most people would resort to selling their much loved home, moving into a smaller house in a cheaper location, and repaying their mortgage with anything that was left over from the sale. However, equity release could provide Mary with the ability to repay her mortgage, provide a lump sum to treat herself to a holiday, and access to further funds in the future as and when she requires them. There would be no need to relocate or go through the stress of selling her property! The loan will last a lifetime and only be repayable when she passes away, sells her property, or moves into long term care*.
* This example is for information only - JNS Financial Ltd can introduce you to a financial adviser most suited to your requirements who can provide personalised advice.
Types of Equity Release
There are two types of equity release; lifetime mortgages and home reversion plans. Whilst both offer tax-free cash in return for an interest in your property, they are fundamentally different, both offering benefits and drawbacks. For more information, please click below.
Looking for the Best Equity Release deals?
Here at JNS Financial, we are able to introduce you to financial advisers who can obtain some of the most competitive rates from the best providers across the whole of the Equity Release Market (which means they are not tied to a single lender).
You may be able to free up equity from your home to use towards an endless number of benefits. Whether you require cash for a holiday, home improvements, helping family members get onto the property ladder or simply paying for their school, college or university fees, the advisers that we work with can help.
Equity Release schemes provide the freedom to improve your future and with reputable providers such as AVIVA, LV and Legal & General, you are sure to find a perfect scheme that suits your lifestyle. Contact us now to be introduced to a sympathetic and knowledgeable adviser, who will provide a free no-obligation initial appointment to discuss your needs and objectives.