Equity Release & Lifetime Mortgages

What is Equity Release?
Equity release is a way of getting cash from the value of your home without having to move out of it. The value of your home is it’s open market value less any mortgage or other debt secured on it.

What schemes are available?
There are two main types of equity release schemes – lifetime mortgages and home reversions. A life time mortgage is a loan secured on your home, which is repaid by selling your home when you die or go into long-term care. Schemes are available which allow you to pay interest on the loan on a regular basis or you may elect to have the interest added to the loan and paid when your home is sold. Home reversion schemes require you to sell all or part of your home to the scheme provider in return for a regular income or cash lump sum or a combination of both. Whichever scheme you choose you retain the right to live in your home for as long as you wish.

Things to note:
Both types of schemes allow you to get a cash lump sum, a regular income or a combination of both; you continue to live in your home until either you go into long term care or die; you continue to be responsible for maintaining your home.

Is it right for you?
For some, equity release may not be the best solution, for example:

• If you only need to raise a small amount of money. Lenders may have a lower limit on the amount they are prepared to offer. If you don’t need this much the arrangement may prove costly.
• Do you have savings or investments you can use instead? In many cases losing income from savings or investments may be a better solution as the costs involved in equity release may well exceed any return you can safely expect from savings. Also as your savings reduce you may become entitled to means tested help and benefits.
• You may need to raise a larger amount of capital than equity release can provide.

There are many aspects of your circumstances to consider, indeed The Financial Services Authority (the independent regulator for the equity release industry) has stated “Equity release schemes are complex and you should always consider taking professional advice before making any commitment”.

At KMS we pride ourselves in offering professional independent advice and we only recommend an Equity Release scheme if it is a suitable option for your personal circumstances. And no pressure sales; one of our fully qualified advisers will meet with you in your own home at a time that is convenience to you, but there is no obligation to proceed further or follow our recommendation.

At our initial meeting we will explain in more detail how the various schemes would work in your circumstances. By meeting in your home we can answer your specific questions and address your concerns in an environment where you feel comfortable and uninhibited. This meeting is completely free and without commitment on your part. We will only proceed to the next stage if, after considering the information we have provided, you instruct us to do so.

For even more information on equity release please visit. http://www.whatisequityrelease.com

To arrange a no-obligation consultation with a specialist adviser click here or call 0800 037 8432.

 Important Information relating to Equity Release Schemes

• Equity Release products involve borrowing against or selling part of your home. There may be more suitable methods of raising funds you need.
• Equity Release schemes may work out more expensive in the long term than downsizing to a smaller property.
• A Lifetime mortgage will reduce the remaining equity in your home. If you live a long time or house prices fall, there may be no equity left for your heirs to inherit.
• Equity Release can affect eligibility for state benefits and grants.
• Equity Release can limit a customers options for moving house in later years. 

Fee Statement

We charge a fee for arranging an equity release transaction. You may select either of the following two alternatives: