Equity Release
Why choose Turney and Associates Ltd Equity Release Services?
If you are considering Equity Release, you are probably aware that it is a complex area with much to understand and consider.
At Turney and Associates Ltd, we will help you understand what’s involved and offer you personal, impartial advice and support so that you can make an informed choice as to the type of scheme or whether Equity Release is right for you. We will take the time to understand your hopes and concerns for the future and your particular financial circumstances, so that our professional advisers can help you to review your options.
Benefits of Turney and Associates Equity Release service:
- Free initial consultation
- Face to face or phone consultations
- Friendly, caring, professional service
- Expert, qualified advice
- Support at each step of the process
- Review your circumstances thoroughly, including any grants or benefits or grants you may be eligible for
- We research the whole of the market to find the best plan for you
- We only provide advice on “no negative equity” products or SHIP products
Step 1 - Is equity release the right option for you? We will tell you more about equity release and if it is suitable for your circumstances. We can also provide you with a quotation, researching the whole of the market to find the plan that best suits your requirements - only then can you make an informed decision on whether equity release is the right option for you. We always recommend that you discuss your plans for equity release with your family. |
Step 2 - Complete application forms and paperwork If you choose to proceed, an application form is completed for your chosen plan and a suitably qualified valuer is instructed by the plan provider to ascertain the value of your property and ensure it meets their criteria. An offer is made and your solicitors are instructed to start work. |
Step 3 - Receive your cash
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Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks ask for a personalised illustration.
We provide a fast and friendly 'hassle free' service.
Why not call us on 01223 329666 to talk to one of our experienced staff.
Or
if you wish we can call you. Just click the phone image to send us your
details.
What is Equity Release?
Equity release is a way of getting cash from the value of your home without having to move out of it.
The value or equity you have in your home is its open market value less any mortgage or other debt held against it.
Although the value of houses has risen over the years, selling up or moving somewhere cheaper to raise extra funds may not be for everyone and this is where Equity Release schemes can help.
Key points about Equity Release
- You need to be over 55 and own your own home
- You can get a cash lump sum, a regular income or both to use as you wish
- Continue to live in your own home
- Continue to be responsible for maintaining your home
Why not call us on 01223 329666 to talk to one of our experienced staff.
How will Equity Release benefit me?
For many home owners, rising property values mean that you may have a significant sum tied up in your home, but at the same time, you may find you just don’t have enough income to enjoy the sort of retirement you had planned.
Equity release can provide disposable income to allow you to enjoy a more comfortable retirement and maybe even fulfil some of your long-held dreams or ambitions.
Popular reasons for Equity Release
- Improving or maintaining your lifestyle
- Home or garden improvements
- Clearing your mortgage
- Buying a new car
- Paying off debts
- For regular holidays and short breaks
- Avoiding inheritance tax
- Financial security and peace of mind
- Treat family and friends
Is Equity Release Safe?
Lifetime Mortgages have been regulated by the Financial Services Authority (FSA) since October 2004. Home reversion plans have been regulated by the FSA since 6th April 2008.
The regulation of these schemes will give borrowers greater recourse to compensation. They will be able to turn to the Financial Ombudsman Service if they feel they have been mis-sold a product.
Safe Home Income Plans (SHIP), an equity release trade body, has worked hard to achieve respectability for the sector since it was set up in the 1990’s.
It has a voluntary code of practice. SHIP Members offer guarantees such as right of tenure for life, a “no-negative equity” guarantee, and the right to move.
Why not contact us now on 01223 329666 to discuss your options.
Alternatives to Equity Release
Equity release schemes can be helpful, but they are not suitable for everyone. All alternatives should be considered:
- Selling your current home and buying a smaller home or moving in with family
- Claiming any State benefits you may be entitled to.
- Contacting your local council or other organisation to check if you could claim a grant to pay for home repairs or improvements
- Tracing any private pensions or investments that you may have lost track of
- Consider using savings or selling any investments
- Help from family
- Rent out a room
- Re-mortgage
- Re-structure finances
- Continue working
Discuss your needs with your adviser and family before deciding which route is best.
What types of Equity Release are available?
There are two types of scheme available and which will be suitable depends on your circumstances.
1. Life time Mortgages Homeowners take out a lifetime mortgage on their property. The lifetime mortgage you get can be a regular income or cash lump sum. The interest is repaid monthly or with the capital when the homeowner dies or is taken into care, and the house is sold. You or your beneficiaries get the balance. Some lifetime mortgages include a shared appreciation element. This means you agree with the lender that that they can have a share in any increase to the value of your home in exchange for then charging you less or no interest on the lifetime mortgage.
Type |
Feature |
Roll-Up Lifetime Mortgage |
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Interest-Only Lifetime Mortgage |
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Fixed repayment Lifetime Mortgage |
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Home Income Plan |
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2. Home Reversion Plans, the second type, do not work like lifetime mortgages but are technically sale and lease agreements. Part or all of your property is sold to a provider for a cash lump sum, an income or both. You will normally be paid less than the full market value of your home – typically between 35 and 60% – although you keep the right to live there. The older you are when you start the scheme, the higher the percentage you will get. At death, its sale reimburses the lender and leaves the rest of the cash for any heirs.
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Lifetime Mortgage |
Home Reversion Plan |
|
|
|
Available from age 55 |
Yes |
Yes |
Keep ownership of own home |
Yes |
No - You become a tenant in your home as you have to transfer part of the ownership of your property. |
Remain living in own home |
Yes |
Yes |
Benefit from any rises in house prices |
Yes |
Only on proportion not transferred to Plan |
You know how much money you will receive from scheme at outset |
Yes |
Yes |
Possibility of leaving some equity to your heirs, depending on size and length of amount released. |
Yes |
Yes |
Choose an income for life or a tax-free cash lump sum payment |
Yes |
Yes |
You can protect a percentage of your home |
Yes |
Yes |
Disadvantages of Equity Release Plans |
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Lifetime Mortgage |
Home Reversion Plan |
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|
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With interest rolling up, the debt will grow over time, although this can be limited by only releasing the money you need, when you need it. |
Yes |
No |
You are locked in, once you sign- your circumstances may change |
Yes |
Yes |
If you choose to repay the lifetime mortgage or home reversion plan early, early repayment charges may apply |
Yes |
Yes |
You eligibility for means tested benefits may be affected. |
Yes |
Yes |
Your taxation situation may be affected. |
Yes |
Yes |
Your options for moving or selling you home in the future may be affected. |
Yes |
Yes |
The value of your estate will reduce, affecting inheritance for family members. |
Yes |
Yes |
Early death risk ie if you die early you may not get good value |
|
Yes |
Relying on rising house prices to repay debt is a risk |
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Request a Call Back
If you would like us to contact you to discuss your specific requirements then please click on the phone to send us your contact details. We will then call you back (usually within 1hr or at a time you specify).
