Age Partnership UK Equity Release
If you’re thinking of retiring or have been retired for awhile you may be wondering how you can supplement your pension. Maybe you want a new car or to go on that holiday you have always dreamed of, if so you may have been thinking about releasing some equity from your home with a lifetime mortgage such as is offered by the Age Partnership UK equity release plan.
Benefits of an Age Partnership equity release plan
- You can choose to protect an inheritance.
- Ability to move home in the future.
- Make repayments if you want to.
How does a lifetime mortgage work?
The chances are if you bought your home awhile ago that it has increased in value by a considerable amount. A lifetime mortgage will allow you to access some of this equity that has accumulated on your property. It works by securing a loan from a lender, like Age Partnership UK, based on a percentage of the market value of your home in the agreement that the debt and any accumulated interest on the loan is repaid when you either die or move into long-term care by the sale of your home.
You can take out a loan for the whole of your house or just a portion of it in order to protect an inheritance for your loved ones. The lump sum you receive from the lender is a tax-free payment and you can spend it however you wish.
How much equity could you borrow?
The amount of capital a lender will loan you is principally based on the market value of your home. Age Partnership UK offer a free Equity Release Calculator that can give an estimate of how much you might be able to get from an equity release plan if you know the market value of your property.
The exact amount you can release is dependent on some other factors as well such as;
- Your age.
- Whether it will be a joint or single plan.
- How much you would like to leave behind to your beneficiaries.
What if your home decreases in value?
If the value of your home fell to less than the amount you borrowed this is known as ‘negative equity’. Many plans including some offered by Age Partnership UK offer a ‘No Negative Equity Guarantee’ this means that you can never pass any debt on to your estate. You will never be charged more than the eventual sale price of your property even if that is for less than you borrowed.
Is it right for you?
There are several equity release products available on the market; Age Partnership UK is just one of many and equity release is not right for everyone; therefore speaking to an intermediary can be a really useful way to help you decide if it is suitable for you. To find out more about the different types of equity release, simply click on the link and fill in the quick form and an equity release specialist will get back to you with free, no obligation quotes and advice.