Equity Release and Home Reversion Plans

Equity release is a way of releasing cash from a house, either through sale or mortgage, while allowing the home­owner to continue living there as long as they wish.  There are different types of Equity release plans and you may see references to “lifetime mortgages” and “home reversion plans”.  We'll explain the differences fully.

Might I be able to get an Equity Release mortgage?

• The youngest owner of the house must be at least 55 (usually 65 for home reversion plans)
• You must own the property outright, or in some cases have only a small mortgage

Why might I be interested in Equity Release?

Many people approaching retirement, or who have already retired, find that their pension can’t give them the financial security or spending power that they need.  Sometimes this comes about because of a need to have access, suddenly, to a significant lump sum of money.  Sometimes it’s about the need to supplement income.

Equity release products may also be useful in Estate Planning and in perfectly legitimate strategies for minimizing Inheritance Tax and other potential liabilities.

What protection do I have? What about my family?

The Financial Services Authority regulates Equity Release products and regularly checks advisers to see they correctly follow the rules and standards.  The penalties for non-compliance are severe.

Equity Release advisers must be specially qualified and our Adviser has all the necessary qualifications. Orkney IFA only recommends products which comply with the Safe Homes Income Plan rules, protecting you and your family from "negative equity" if the value of your house falls, or if the loan ever becomes greater than the value of the house.

Don't hesitate to get in touch if you'd like to have a no-obligation exploratory chat, in complete confidence.

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