A lifetime mortgage allows you to release the equity in your home in the form of a lump sum cash or a series of flexible payments while retaining full ownership. If you're over 60, homeowner, and need to finance long-term care, a lifetime mortgage might be right for you. Be careful though: these plans don't offer the best value for money. However, if you can't or don't want to reduce your size, it's an option you can consider.
They could affect your entitlement to benefits or the support of your local council. This is because any money you raise through the release of capital is likely to affect the evaluation of your income and capital.
Capital releaseschemes do not offer the best value for money. Consider what grants or subsidized loans might be available if you are raising capital to improve or modify your home.
However, it can be time-consuming and stressful, and you will have to move out of your current home. You can choose to apply for a lump sum or, with a discounted lifetime mortgage, you can access smaller amounts of cash over time. This can provide a regular income, up to the limit set by your plan provider. You will not be charged interest on the amount until you decide to use it.
However, there is also flexibility here, as some lifetime mortgages allow you to make voluntary repayments. If you can make payments each month, you will reduce or maintain the debt you will have to pay with the sale of your home. In turn, this could make it more likely that there will be money left to pass on as an inheritance. Unlike a home reversal plan, where you sell a portion of your home in advance, with a lifetime mortgage you keep the property and can fully benefit from future increases in the value of your property.
Your financial advisor or mortgage advisor can help you decide if a capital release plan is appropriate or if you should consider other options, such as reducing your headcount. Releasing capital may be right for you, but it's important to think about the pros and cons before making any major decisions. On the other hand, there are potential disadvantages to capital release, which you should always consider before deciding whether capital release is the right choice for you. The money you release from your home with a lifetime mortgage may affect your entitlement to state benefits with income control.
Releasing capital can provide you with a large sum of money to spend and at the same time allow you to continue living in your home. Lifetime mortgages with a no-negative equity guarantee that you never owe more than your home is worth. A lifetime mortgage is a type of equity release, a loan secured against your home that allows you to free up cash tax-free without having to move. By submitting this form, you consent to us calling you to discuss how the products and services provided by Legal & General Financial Advice may work for you.
With a home reversal plan, you sell all or part of your property, but you have the legal right to continue living there until you die or enter long-term care.
key equityrelease is a trade name of Key Retirement Solutions Limited that is authorized and regulated by the Financial Conduct Authority. Consult first with an independent financial advisor or mortgage broker specializing in capital release. Equity release products, such as a lifetime mortgage or a home reversal plan, can reduce the value of your equity and affect your entitlement to benefits.
Only by considering all the available options will you know that capital release is best for your circumstances. .