Equity Release
Equity Release: Your Options in Retirement
Many people find that retirement does not always bring the financial freedom they imagined. Rising living costs, limited savings, or the wish to support family can leave you searching for extra funds.
If most of your wealth is tied up in your property, equity release can provide a way of accessing that money without leaving your home.
What is Equity Release?
Equity release enables homeowners aged 55 or older to access cash from the value of their property while continuing to reside in it. The money released is tax-free and can be taken as a single lump sum, smaller instalments, or a combination of both. The loan is repaid when the property is eventually sold, either when you move into long-term care or after your passing.
It is a significant financial decision, one that requires careful consideration and guidance. We help clients understand the whole picture, weighing up the benefits and the responsibilities, so they can choose what is right for their circumstances.
Lifetime Mortgages
A lifetime mortgage allows you to borrow a percentage of your home’s value. While interest accumulates on the borrowed amount, you aren't required to make monthly repayments unless you opt for an interest-only plan.
Instead, the accumulated interest is added to the loan and settled when the property is eventually sold. This type of equity release is the most common choice among homeowners.
Key features include:
- Available from age 55.
- No monthly repayments are required, unless you choose to pay the interest to prevent the balance from increasing.
- The “no negative equity” guarantee, which means you or your estate will never owe more than the value of your home.
How Equity Release Could Help You
Equity release is not the right choice for everyone. It can affect your estate, inheritance plans, and entitlement to means-tested benefits. Interest on lifetime mortgages is compounded, meaning the debt grows rapidly if left unpaid. With home reversion, you are selling part of your property for less than its open market value.
Equity release can alleviate financial pressures and provide you with greater freedom in later life. Many people use it to:
- Conduct home improvements that enhance their quality of life.
- Provide financial support to children or grandchildren.
- Clear existing debts or manage rising costs.
- Fund holidays, hobbies, or a better quality of life in retirement.
For some, it provides peace of mind and stability. For others, it offers the means to enjoy retirement rather than simply getting by.
How We Can Help
We understand that later-life borrowing is not just about money, but also about security, dignity, and peace of mind. Our role is to provide you with clarity, explain every stage in plain language, and ensure that your interests are protected.
Dutton Gregory are not regulated by the Financial Conduct Authority so cannot give financial advice regarding Equity Release mortgages. Equity Release mortgages aren’t for everyone – alongside speaking to us as your trusted legal advisors you should seek independent financial advice about whether Equity Release is the right financial decision for you.
We cannot offer financial advice on Equity Release mortgages.
Our service includes:
- Reviewing mortgage offers and legal documents carefully.
- Arranging appointments in our offices, via video call, or at your home.
- Explaining lender requirements and ensuring all paperwork is signed correctly.
- Highlighting how equity release may affect your estate or benefits.
- Reassuring you at every stage with straightforward, expert advice.
Frequently Asked Questions
Yes, the funds released are tax-free, though how you use them may have tax implications.
With a lifetime mortgage, you keep full ownership. With home reversion, you sell a portion of the property but retain the right to live in it for the rest of your life.
In many cases, yes. Most lifetime mortgages are portable, subject to lender approval and their lending criteria at the time of moving.
No. Equity Release Council-approved lenders offer a no negative equity guarantee, meaning your estate will never owe more than the property is worth.
Equity release is a significant financial step. Our experienced team will be by your side, ensuring you fully understand your options and their long-term implications.
We pride ourselves on being approachable, thorough, and empathetic, giving you both confidence and reassurance.
We see every client as an individual, not a transaction. That is why families return to us for advice time and again.
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