Noun the use of financial agreements that provide the owner of a home or other property with funds derived from the value of his property while allowing him to continue to use it. Increasing your capital or income through capital release may mean you lose some or all of your state profits.
Capital releaserefers to a range of products that allow you to access capital (cash) immobilized in your home if it is older. You can accept the money you release as a lump sum or, in several smaller amounts, or as a combination of both.
Equity release is a type of loan that allows older borrowers to access some of the money tied up in their property. There are different types, such as a life mortgage or a home reversal plan. The amount you can borrow will depend on your age, the lender, and the value of your property. A capital release mortgage involves a lender giving you cash in exchange for a portion of the proceeds from the sale of your property later on.
But unlike a traditional mortgage, which you pay within a certain period of time, a capital release loan is not settled until you leave your home. The capital release allows homeowners 55 and older to free up tax-free money from the value of their home. The amount you can release depends on your age and the value of your home. Depending on the capital release product you choose, you can claim your money as a large lump sum or as a series of smaller lump sums.
Releasing capital is a way to free up money from your home without having to move, but it comes with certain risks. Equity release is the process of converting that capital into money you can spend, without having to sell your home. So how does capital release work? Equity release is available to homeowners age 55 and older. The money is released from your home in the form of tax-free money with which you can do whatever you want.