Equity Release From K & Co Wealth Management
If you are a homeowner aged over 55, you could have the option to benefit from releasing a tax-free lump sum or a regular additional income from the value of your home with the help of an equity release scheme.
Our Broker are the UK’s leading over-the-phone specialist in equity release, assisting customers in deciding if it is right for them and, if so, searching the market for the scheme that best meets their individual needs and circumstances.
As an independent broker, our equity release service can only be as good as the products that we offer, so we put enormous effort into working with providers on product developments that will meet the needs of our clients. Our customers routinely benefit from preferential equity release plans and we often contribute towards product set-up costs ourselves.
If you are considering releasing the equity from your property, you will find out all you need to know in our useful guide. Request your free equity release guide by clicking here. (can this be linked to a form to fill in)
However, equity release plans are not suitable for all individuals and financial situations, so it is important to speak to an experienced finance professional before committing to a scheme. Our dedicated team will detail the entire process of releasing equity from your property.
The money raised can be used for any purpose, including:
- Paying off your mortgage
- Making home improvements
- One-off purchases such as a car, caravan or holiday
- Paying off credit cards or loans
- Enjoying a more comfortable retirement
- Helping out friends or family members
2016 saw the landmark figure of £2 Billion in annual lending passed, doubling the yearly growth from 16% in 2015 to 34% in 2016 with lifetime mortgage customers growing faster than any other mortgage market segment’ – Nigel Waterson, Chairman of the Equity Release Council
We believe that people who are at, or approaching, retirement deserve to get the best out of life. They are one of the UK’s leading equity release specialists allowing homeowners aged 55 years and over to release the money locked up in their home as tax-free cash.
By choosing to work with them you will be giving our clients that have objectives that cannot be met with their own savings, access to an award-winning service and the best market rates which will set you apart from your competitors.
What is Equity release?
The value of a home, minus any outstanding mortgage, can be described as ‘equity’. In order to qualify for equity release customers must own their home and be over the age of 55.
An equity-release plan is a way of accessing extra cash without having to move home with the most popular form being a lifetime mortgage which enables customers to continue to own all of their home.
There are several reasons the equity release market is growing, including;
- We are living longer which is putting a strain on our pensions, the cost of social care and personal savings
- Interest-only mortgage terms coming to an end and customers may have a financial shortfall – We recently partnered with Yorkshire building Society helping to ensure that their customers benefit from the widest range of financial solutions
- First time buyers struggling to buy their first home, and parents/ grandparents wanting to lend a helping hand. According to research from L&G, the bank of mum and dad will help fund property purchases worth about £75bn this year.
TYPES OF EQUITY RELEASE SCHEMES
A lifetime mortgage allows you to release a lump sum of cash or regular extra income from the value of your property. There are typically no monthly repayments to make as the amount that you have released, plus any interest, is repaid from the money made when the property is sold. Generally this is when you die, move into long-term care or permanently leave the property.
Drawdown Lifetime Mortgage
This is similar to the standard lifetime mortgage. However, with the drawdown lifetime mortgage, you can access your money with more flexibility. Rather than just receiving a lump sum, you have the option to release your cash over time, as and when you need it. Because you only pay interest on the cash that you have taken, these plans can often prove to be more cost-effective.
Interest-Only Lifetime Mortgage
This is like a standard lifetime mortgage. However, you make regular monthly repayments to reduce the effect on the value of your estate. Some plans allow you to make repayments that are equal to or less than the amount of interest that is charged. The balance is paid off from the value of your estate once you have died or have moved into long-term care.
Home Reversion Plan
A home reversion plan allows you to exchange the ownership of some or all of your property for a lump sum of cash, along with the right to stay in the property, free of charge, for as long as you live. This is also known as a ‘lifetime lease’ and there are no monthly repayments to make. Because you can continue living in your home, rent-free, for life, you would generally receive an amount for your property that is lower than its market value.
WHAT SHOULD YOU CONSIDER?
It is important to get specialist equity release advice and discuss:
- How equity release will affect the value of your estate and the amount you will be able to pass on to beneficiaries
- How the funds released could affect your entitlement to any means-tested benefits you may receive either now or in the future
- Alternatives to equity release such as downsizing or taking in a lodger
- Any charges that you may incur if you wish to pay off an equity release plan early
OUR EQUITY RELEASE SERVICE
We have teamed up with one of the UK’s leading equity release specialists, to assist you in deciding if it is right for you and, if so, search the market for the scheme that best meets your individual needs and circumstances.
They provide initial advice and an equity release recommendation for free and without obligation. Only if you choose to proceed and your equity release application completes would a typical fee of 1.5% of the amount released be payable.
WHY USE THEM?
- All their advisers are fully qualified and experienced
- Multi-award winning service
- They offer a no-obligation quotation and don’t charge anything for advice unless you choose to proceed with their recommendation.
- They can offer preferential and exclusive rates that are not available elsewhere
- Have a high level of customer satisfaction, and have been awarded the highest possible Investor in Customers (IIC) rating which independently classes their service as ‘exceptional’.
- Fully independent and whole-of- market advice
- They are authorised and regulated by the Financial Conduct Authority, and are a member of the Equity Release Council.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks ask for a personalised illustration.
Despite recent ups and downs in property prices our homes are usually our biggest asset. On average, house prices have roughly doubled every 10 years since 1974. As a result, many millions of Britons who have reached or are approaching retirement age now find themselves with a wealth of equity that far outweighs that of their savings and income.