Equity Release mortgages are a specialised form of mortgage obtained by homeowners over the age of 55. The reasoning behind it could be to pay off an existing mortgage, support your loved ones, bolster your retirement finances, or simply the post-retirement life you want. Equity release mortgage advice can only be provided by an adviser who is qualified in this field.
There are two main forms of equity release available:
Lifetime mortgage:
This involves taking out a mortgage secured against your property provided it is your main residence and you will continue to retain ownership of the property. There is an option to make repayments for the borrowed sum or let the interest roll-up. The capital outstanding and any rolled-up interest are paid back by selling the sale of the property when the last borrower dies or when they move into long-term care.
Home Reversion:
This method involves the sale of the property as a whole or as a part to a home reversion provider in return for a lump sum payment or regular payments. As part of this arrangement, you are still permitted to reside in the property until you die, however you are required to maintain and insure the property. If you decide to sell a part of your property, your percentage of ownership will remain the same throughout the term unless you choose to take further cash payments. Once the last borrower dies or moves into long-term care, the property is sold, and the sale proceeds are divided according to the remaining shares of ownership.
Equity Release advice is only available via referral to a 3rd party and Triton Private Finance Limited or PRIMIS has no responsibility for the service provided.
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits and tax status.
There are various factors that determine if Equity Release mortgage is the right option for you such as; your age, how much money you want to release, how much equity is within your property, the condition of your property and your future plans. It can be an exciting prospect for clients to explore this option because of the immediate financial boost it carries, however it is an option to be reviewed carefully with an adviser to ensure you understand how it will impact your future finances.
Triton Private Finance Limited is registered in England and Wales with the company number 13548123. Registered Address: 128 City Road, London, EC1V 2NX.
Triton Private Finance Limited is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of Personal Touch Financial Services Limited. Personal Touch Financial Services Limited is authorised and regulated by the Financial Conduct Authority.
The guidance and/or advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. The Financial Conduct Authority does not regulate some forms of buy to let mortgages.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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