What is Equity Release
With the continuous rise in house prices, many homeowners in the UK find a significant portion of their wealth tied up in their property. The value of your home, minus any outstanding mortgage or secured loan, is known as your “equity.” Our equity release plans empower homeowners aged 55 and above to unlock this equity and convert it into cash. You can choose to receive a lump sum, smaller amounts over a specific period, or a combination of both.
The most popular type of equity release is the Lifetime Mortgage. Unlike traditional residential mortgages, there are typically no monthly repayments involved. Instead, the interest is added to the initial loan, which gradually increases over time. You maintain ownership of your property, and the outstanding debt is repaid only upon your passing or if you permanently move into a care home. This means you can continue to benefit from any appreciation in your property’s value throughout your lifetime.
Is Equity Release Suitable for Me?
The funds released through equity release are tax-free and can be utilised for various purposes, such as:
- Supplementing your retirement income
- Consolidating existing debts and reducing monthly expenses
- Providing financial gifts to your children
- Mitigating potential Inheritance Tax liabilities
Determining whether a lifetime mortgage is the right choice for you depends on your individual circumstances. It is crucial to seek professional financial advice before making any decisions. At 3D, we prioritise our clients and their needs, always recommending the most suitable option for you and your family.