Would you like to:

• Unlock the cash from your home and enjoy a richer retirement.
• Release tax-free cash from your home
• Access a cash lump sum, a drawdown reserve of cash or both
• Live in your home throughout your retirement

If you want to achieve any of the above then you can do this via a process called ‘Equity Release’.

What is equity release?
Equity release lets you release tax-free cash from your home, without having to move, which you can then spend on your garden or home, on a holiday, to treat family or friends or to make your retirement more comfortable.

This is available to you if you’re aged 60 or over and are a homeowner. The money you release can be in the form of a cash lump sum, a drawdown reserve of cash or both.
The ‘equity’ in your home is the difference between its value and any outstanding loans, such as a mortgage, secured on it.

Equity release is a way of unlocking a proportion of the value – or equity – you have in your home in exchange for a tax free lump sum.

Types of equity release

There are two main types of equity release scheme:

1. You can either take out a loan against the value of the property. In most cases, these don’t usually require any repayments until the property is sold. This is known as a lifetime mortgage.
2. You can sell all or part of your property known as a home reversion plan in exchange for a lease for life and a cash lump sum.

Are there any repayments to make?
In the case of a lifetime mortgage, you can choose not to make any repayments of interest or capital on this loan during your lifetime. Instead, interest owing is added to the initial sum borrowed and any money borrowed in the future. This loan plus the interest is repaid to the equity release company from the sale of your home (or from your estate) when you or your surviving partner die or move into long term care. The amount you receive will depend on your age and your property’s value.

NB. Equity Release is a lifetime mortgage or home reversion scheme. To understand the features and risks, ask for a personalised illustration.