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Equity Release Equity release is becoming increasingly popular with home-owning senior citizens who want to enjoy their retirement in comfort and style. The scheme allows you to keep your house while acquiring a steady stream of income. The repayment comes later on - usually from your estate after you die, which makes equity release ideal for individuals who do not wish to leave large amounts to heirs. There are two basic types of equity release plan available in the UK. A lifetime mortgage, which is the most popular, is where the homeowner retains their property, but it is charged with the repayment of a loan which accrues interest over the homeowner’s lifetime. Many companies provide an equity release calculator so you can work out how much cash can be released to you. A reversion plan is where the homeowner sells all or part of their property to the equity release provider in return for the right to remain living there rent-free. All equity release providers in the UK are regulated by the Financial Services Authority (FSA). Advantages of the scheme including being able to get your hands on a cash lump sum, tax free, or receiving a steady income, and being able to reduce the amount of inheritance tax paid by your estate. Also the borrower is protected from a fall in the housing market by the no negative equity guarantee (NNEG). Some disadvantages are that it may reduce the amount you can bequeath to charity and it may affect the amount of means-tested benefits you are entitled to. Discuss your circumstances with a financial advisor or financial service provider if you are considering equity release. î Ž MY CARE GUIDE


My Care Guide  
My Care Guide  

Your personal guide to caring services in Sefton & West Lancashire