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. 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. Providers vary, but to be eligible for a lifetime mortgage, the minimum age is usually 55. If you have an existing mortgage or other debt secured against your property, you must pay it with the equity release itself or before proceeding with the application. The capital release allows people 55 and older to free up money from the property they live on without having to make any monthly refunds. If you live in a mortgaged property, the equity in it is the difference between the value of your home and the total mortgage and any loans you have insured on it.
The release of capital is an agreement that allows you to access the money from this capital without having to leave your home. Usually you must be at least 55 years old. You may be able to accept the money you release as a lump sum or regular smaller payments, or both. Capital release refers 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.
