Equity Release In London
For many elderly people in London, an equity release could be a very valid option, as it would allow them to access funds that would otherwise remain tied up in their home, and allow them to live out a much more comfortable retirement.
If you are looking for equity release in London, there are two main options for you to consider:
- With a lifetime mortgage, you would take out a loan on the value of your house
- This could be received as a lump sum or, in some cases, you could opt to withdraw money later on
- You would still fully own your property up until your death or until you move permanently into a retirement home
- Lifetime mortgages tend to be portable, so you could have the freedom to move house if you wished (although certain conditions may apply)
- When you die or move into a retirement home, your property would be sold to pay back your loan.
Home Reversion plans are essentially very similar to lifetime mortgages, but instead of taking out a loan against the value of the property, a portion of it is sold directly to a provider in exchange for either a regular source of income, or a cash lump sum.
Home Reversion Plan
- You would no longer fully own your home, although you would be able to live there as a tenant for the rest of your life
- You may be required to pay rent to the reversion company, but this is not always the case
- Upon your death or your permanently moving into a residential home, your home would be sold, with the reversion company taking their share of the proceeds to cover the cost of the loan.
It is very important to consider all your options before committing to an agreement. If you are interested in sourcing quotes for equity release deals in London, we could help you. Please click below for quotes and further information on equity release.