What is Equity Release?

Are you over the age of 55? Do you own a property outright? Do you wish you could find some more money? If yes, then equity release is a sure and secure way to help you.

Equity release allows you to access the money in your home without selling it completely or moving out. As we age, we may need to access money for various things perhaps you need to purchase a stair lift, revamp your bathroom, or employ a cleaner to help you at home in order to increase your comfortableness as you grow. Equity release permits us to do so by accessing the money that is locked away in the property that we own and all without needing to move a single box or bedpost!

Types of Equity Release

There are two types of equity release that you should consider:

• Lifetime Mortgages: A lifetime mortgage is very similar to mortgaging a property; a mortgage lender will assess your property for its value and then release that value to you with the promise that you will pay it back plus interest. The interesting thing about lifetime mortgages however is that you will make no repayments whilst you are alive or unless you move home. A lifetime mortgage releases the equity in your home and you won't need to make any monthly repayments
• Home reversion: Home reversions are slightly more complicated than lifetime mortgages but are still a simple concept. As a homeowner, you can sell part or your entire home to a reversion provider and in return the company will guarantee you the right to live there until your death.

Lifetime mortgages are the more common of the two however there are some slight things you should consider when deciding between the two options. Lifetime mortgages often have minimum wages above 60 years old and you may be required to have already retired. Moreover, lifetime mortgages are often capped at 60% off their market value.

With a home reversion option however, the older you are when you sell the property share, the more that you will receive. You'll also be required to carry out property maintenance and insure the property if you have secured a home reversion. These are important factors that you need to consider when deciding between the different types of equity release.

MoneySpace can help you to decide between the different types of equity release and in addition can find you the perfect equity release scheme for you completely free of charge. Our equity release market searches are the most comprehensive, wide-reaching, and detailed searches out there, which means we can always find you the best scheme for your home. Any search that we undertake on your behalf comes with no obligation to pursue the policy or take it further, we just want to help you find the right equity release deal for you and your property.

If you wish to search for equity release schemes, then fill in the form above to get the ball rolling and to get that equity out of your property into your hands!