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. 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 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. 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. As a first step, you'll need to talk to a financial advisor who is qualified to advise you on capital release products. The good news here is that advisors who specialize in releasing capital must have a special qualification, which means that the advice given to you must be comprehensive and up to date.
Within these two categories, there are many different options available and it is important that your current and future needs match the right type of capital release plan, which a qualified equity release advisor can assist you with.