Lifetime Mortgage

Equity Release can give an eligible homeowner aged 55 or older access to some of the money tied up in the value of their property. This would allow you to draw cash from the value of your home without moving out or giving up any ownership. 

The main form of equity release offered by Life Mortgage Solutions is called a lifetime mortgage. Every year lifetime mortgages enable thousands of people to stay in their homes and cash out the value without having to make make monthly repayments.

A lifetime mortgage is a popular type of equity release and here are some facts about the product. 

• Lifetime mortgage is a long term loan which is secured on your property.

• The amount of money that you can borrow depends on your age and value of the property.

• Some plans will enable you to choose to release a single lump sum amount, or you have the option to release a smaller amount and set up a cash reserve to borrow additional sums from in the future. 

• Unlike a standard residential mortgage, you don`t have to make any monthly repayments; instead interest would build up on the loan each year; or alternatively you can make interest only payment.

• Annual lump sum payments (over payments) are acceptable.

• Interest is charged on the total of the original loan amount and any interest previously added, which would increase the amount you owe.

• The loan and interest is repaid in full, usually from the sale of your home, when you (and your partner, for a joint lifetime mortgage) die or go into long-term care - subject to each lenders own terms and conditions. 

• No Negative Equity Guarantee - This Guarantee means you or your estate will never have to pay back more than your property is sold for, as long as it is sold for the best price reasonable obtainable.

• Taking out a lifetime mortgage will reduce the amount of inheritance you are able to leave and may affect your tax position and edibility for welfare benefits.

• Renovating or refurbishing - from a new kitchen to a new roof.

• Helping children and grandchildren with house deposits, student fees, weddings and other major events.

• Topping up retirement income - making life more comfortable.

• Taking the holiday of a lifetime or visiting relatives abroad.

• Adapting their home to enable independent living.

• Paying for funerals.

• Buying a new car, motorhome or caravan.

• Funding hobbies and leisure activities.

Contact our team to arrange for your free initial telephone consultation.