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Alternatives to a lifetime mortgage
 

Take a Holiday of a Lifetime with Cash from Equity Release

   
  - Keep 100% ownership of your property    
  Ask for a free equity release quote    
     
 
Yes
Free equity release quote - There is no obligation and quotes are free.
Yes Whole of market - As independent mortgage advisers we represent you and can look at all 139 products in the market.
Yes Low rates of interest - Rates from 3.65% with no repayments required and a negative equity guarantee included.
 
Yes
Access cash tax free - Receive a lump sum tax free from 31% to 63% of the property value based on your age to spend on anything you want.
Yes Keep 100% of your home - A lifetime mortgage lets you keep ownership of your property.
Yes Penalty free repayments - Pay up to 10% of the loan each year without penalties to reduce the amount your estate owes.


 
     
 
Equity release improving your quality of life   Lump sum and drawdown mortgages   Alternatives to a lifetime mortgage   Steps you take to access cash from your home   Free equity release quote  


Home reversion plans

With home reversion plans you sell a proportion or all of your property to a reversion provider in exchange for a lump sum to raise the funds immediately.

The ownership of your property would transfer to the reversion provider for a cash amount, unlike a lump sum mortgages or drawdown mortgage, so you would not receive the full value from the property when sold.

Only a lifetime mortgage would let you keep 100% ownership of your property to pass your wealth to your family and beneficiaries in the future.

You can continue to live in your own as a tenant rent free for your lifetime until you die or enter permanent residential care. If you only sell half of your property then at the end of plan half the equity value would revert to your estate and half to the reversion provider.

The home reversion plan is available if you are aged 65 and over and if you sell 100% of your home with a property value of £400,000 lenders would offer a lump sum shown in the following table:

Home Reversion - maximum equity release
Your age Loan amount LTV
65 £160,000 40%
70 £184,000 46%
75 £208,000 52%
80 £236,000 59%
85 £256,000 64%


Home reversion plans are designed to unlock capital from your home rather than income and do not charge interest that is rolled up or paid as you go along.

The reversion provider takes a share of your property and receives no income during your lifetime, so they expect to benefit from the capital gain realised at the end of the plan.

You must give the reversion provider a reasonable discount on the actual value of your home at the beginning. If you die early after only a few years the property is sold and you would have exchanged the full value for a smaller proportion which is not a good return for your estate.


Alternatives to equity release

There are many reasons for using equity release either as a lump sum or income although it is not suitable for everyone so before taking any action you should consider the alternatives.

People in retirement often find their income from State and other pensions may no longer meet their daily expenses, maintain their standard of living or pay for the unexpected events or clear debts.

People in retirement often find their income from State and other pensions may no longer meet their daily expenses, maintain their standard of living or pay for the unexpected events or clear debts.

As an alternative to equity release you can consider other routes and the following are a number of options you can consider:


Alternatives to equity release

Downsize by selling your existing home

Use other savings or investments
Rent a room and take on tenants

Re-budget to live on less money

Your family could help with funds

Claiming grants or state benefits

Government rented homes

Move to live with family members


To receive more income you could check to see if you are entitled to claim State benefits and grants and perhaps you could re-budget your finances to allow you to live on less money.

Family members could help you either with your income in retirement or if your property has a spare room, you could consider taking on a tenant to generate more income.

If you need a cash lump sum you could use your savings although you may be reluctant to use their emergency savings in case they are needed in the future.

You could consider downsizing to a smaller property to release the cash you need and this would avoid the extra cost of a mortgage although you would have less space and the expense of moving including stamp duty on your new home.


Must read links for equity release

Learn more about equity release and read our other pages about the types of lump sum and drawdown mortgages you can consider, alternatives to a lifetime mortgage and the steps you need to take to access cash from your home.

Ask us for a free equity release quote to see the maximum lump sum you can receive or the lowest interest rate for a specified cash amount from your home. Call Colin Thorburn on 020 8816 7501 to ask questions about your options.

Equity release lifetime mortgages

Lump sum and drawdown mortgages

Lump sum table - Maximum cash

Drawdown table - Maximum cash

Alternatives to a lifetime mortgage

Steps you take to access cash from your home

Free equity release quote


How can we help

As independent equity release advisers we do the work for you to search and find the best lifetime mortgages from the whole market. We also have access to unique offers not automatically available by lenders such as free valuations to help reduce your costs.

There are hundreds of products with varying terms & conditions which can have an impact on how you change the mortgage in the future. We can help you the technical aspects and advise you on the benefits of each lifetime mortgage lender.

We can recommend the most suitable and affordable options based on your needs now and in the future. Our service includes administration and advice which is Fee Free for loans over £60,000 as we receive a procuration fee direct from the lender. If the amount you are releasing is small, we will let you know if an additional fee would apply.


About Sharing Pensions

Sharingpensions.co.uk was created by its founder Colin Thorburn in 2001 to provide a resource to hundreds of thousands of people during retirement making their decision making easier and to select the best options.

Colin Thorburn has twenty years experience in retirement planning including equity release, is an individual authorised by the Financial Conduct Authority and business is submitted through Blackstone Moregate Ltd which is authorised and regulated by the FCA (no. 459051).


Must read links for equity release
Ask for an impaired quote

Equity release lifetime mortgages

Lump sum and drawdown mortgages

Lump sum - LTV table

Drawdown - LTV table

Alternatives to a lifetime mortgage

Steps you take to access cash from your home

Free equity release quote
You can call our experts to ask questions
Ask for an impaired quote

Simply speak to our equity release expert Colin Thorburn to discuss your options to access cash from your home tax free or would like us to take your details for an equity release quote please contact us:
Call 020 8816 7501
Monday - Friday 9am-6pm

Calls from overseas:

+44 (0) 20 8816 7501
 
Our London address:
Bury House, 31 Bury Street, London, EC3A 5AR
Important information
you need to know
Ask for an impaired quote

Equity release is suitable if you need to access £10,000 of cash as a lump sum or more and aged 55 or older.

The maximum you can take depends on your age and is a proportion of the property value from 31% to 61%.

Equity release can be taken as an initial lump only or with the additional pre-arranged drawdown option which you can access at any time in the future.

The average amount of equity release people take initially using drawdown is £64,000 and as a lump sum it is £96,000.

We offer a Free Quote service and if you proceed with a lifetime mortgage full advice and recommendations based on your circumstances is Fee Free for loans over £60,000 as we receive a procuration fee direct from the lender.
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