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Would you like to achieve your retirement aspirations? Many people find themselves asset rich and cash poor, and house prices have increased rapidly over the past decade.

Equity Release allows homeowners over the age of 55 to free up money from their properties. The equity in your property is the market value of your home, less any mortgage or other finance or loans secured against it. Equity release allows homeowners to unlock this value and release it as a tax-free sum of money or regular smaller amounts, using a drawdown facility.

The number of equity release products is higher than ever, with a rapid expansion of plans on the market, giving property owners greater flexibility in releasing equity. The marketplace is now embracing new innovation which puts to shame traditional mortgage lending and hopes to banish the old stereo type thoughts of Equity Release.

Unlike a traditional mortgage, with equity release, you do not have to make monthly payments unless you choose to do so. The loan’s value, plus any accumulated interest, is paid off when the last borrower moves into long-term care or dies.

New products encourage payments also, with this enabling larger borrowing and better interest rates available. By making payments this will ensure your loved ones receive a bigger inheritance than expected.

You must seek independent equity release advice if you are considering whether equity release is the right choice for you. Advice will be given allowing you to make this critical decision.

If you think that releasing equity is an attractive option, we can search across the whole of the market to find the right product for you.

Why do people choose to release equity?

There are many reasons people choose to release equity, and equity can be used for whatever you wish. Typical reasons to decide to release equity include:

• To pay off existing debts or a residential mortgage
• To fund home improvements or adapt your home so you can continue living there
• To add to your retirement income for day-to-day living costs
• To help children or grandchildren with a ‘living inheritance’ – usually used for housing costs to pay for a wedding or education
• To go on holiday or travel more
• To fund care at home or private medical bills

What are the different types of equity release?

There are two main types of equity release mortgages: Home Reversion Plans and Lifetime Mortgages. The Financial Conduct Authority regulates both these types of plans. The vast majority of the market now centres on Lifetime Mortgages. These products have evolved over the years and now offer a safe and versatile way to access money tied up in your home.

There are hundreds of equity release products available on the market, and our trusted adviser can research them all to find the right one for you.

Equity release is not always the right option for everyone; we will discuss the implications for any inheritance, your eligibility for means-tested benefits, and your tax position.

Lifetime Mortgages

Lifetime Mortgages allow you to take out a mortgage against the property’s value whilst maintaining full ownership of your home. You can either let the interest roll-up or pay some or all of the interest to reduce the value of the loan. When you die or move into long-term care, the money from the sale of the property is used to pay back the loan.

New to market are variants of the lifetime mortgage which allow for more flexibility in pricing and borrowing, with the condition that some level of agreed repayments are made. People have spoken and the marketplace has listened and actioned.

Home Reversion Schemes

With Home Reversion Schemes, you sell either part or all of your property to the provider in order to receive a lump sum or smaller payments. This passes some or all of the ownership to the provider, but you can continue living in your home rent-free until you move out or pass away. We do not advise on Home Reversion as it doesn’t fit with our ethos.

Retirement Interest Only (RIO) mortgage, available from age 50, if working or retired. It is an income assessed product to ensure that any commitment made can be maintained for the duration.

It has no end date so you need never to have another mortgage.

The mortgage is repaid from the sale of their home when your pass away or move into long-term care.

A RIO could be suitable for various needs including:

• Purchasing a new property
• Remortgaging an existing loan
• Generating funds for home improvements, lifestyle or to start a Bank of Mum and Dad
• IHT planning and wealth management
• Those looking for an alternative to Equity Release products due to requirement of higher loan amount, income to service interest or to avoid the impact of roll-up compounding interest.

Think carefully before securing other debts against your home. As a last resort, your home may be repossessed if you do not keep up with payments.

Term Interest Only Mortgage is available aged 50-80 whether you are working or retired. It is an income assessed product to ensure that any commitment made can be maintained for the duration.

You pay only the interest each month but chooses the term unlike with a Retirement Interest Only (RIO) mortgage, which has no specified end date. Because of this the borrowed amount can be higher than with a RIO

Term Interest Only could be suitable for a wide range of circumstances, including:

• Purchasing a new property
• Remortgaging an existing loan
• Generating funds for home improvements, lifestyle or to start a Bank of Mum and Dad
• Staying in the property in the short term before downsizing or awaiting an inheritance payout.
• IHT planning and wealth management
• Those who aren’t ready or who don’t currently qualify for a RIO mortgage or Lifetime Mortgage (equity release) product. A Standard Interest Only mortgage can act as a bridge into these.

Minimum Equity Requirements

With Term Interest Only, you are required to hold sufficient equity in the mortgaged property, this is done by a Postcode check prior to application.
Think carefully before securing other debts against your home. As a last resort, your home may be repossessed if you do not keep up with payments.

Would you like to know more about Lifetime Mortgages in Cambridgeshire, Lincolnshire, Suffolk, or Norfolk, Northamptonshire, Leicestershire, Bedfordshire, Hertfordshire, Essex and the Home Counties? The most popular type of equity release plan is a Lifetime Mortgage. This is a mortgage secured against your property whilst maintaining full ownership of your home.

Unlike a regular mortgage, you don’t need to make any monthly repayments and the interest on your loan each year. Instead, interest is added to the total loan and this ‘rolls up’ over time and is known as compound interest.

However, specific plans allow you to pay back some or all of the interest. In addition, many other features are available to suit your needs, such as ringfencing a percentage of your property as inheritance or releasing the money in stages. This is known as Drawdown Lifetime Mortgage, and you will only be charged interest on the money you have received.

The loan and any remaining interest are repaid in full when you – and your partner in the case of joint mortgage – pass away or move into long-term care. For a couple taking out equity release, the plan ends when the last remaining homeowner passes away. You will continue to own your property until then and will benefit from any increase in house prices in that time.

Lifetime Mortgages across the whole of the market

By having access to the whole of the market, which has increased in recent years, this affords us more flexibility and versatility than ever. Our advisers offer honest and impartial advice about the best Lifetime Mortgages for your needs.

All products come with a no negative equity guarantee, which means that your beneficiaries will never owe more than the value of your property, and any outstanding fees will be written off.

Is a Lifetime Mortgage the right decision?

If you are thinking about a Lifetime Mortgage, we will be able to discuss the benefits to you and any drawbacks. These include interest rolling-up, which means it compounds over time. There are also other charges associated with a Lifetime Mortgage, including lender fees and solicitors’ fees.

We will tell you about these costs and evaluate whether we believe a Lifetime Mortgage is the right choice for you. We will always put you and your best interests at the heart of our work.

We are authorised by Financial Conduct Authority (FCA) and are proud members of the Equity Release Council.

What are the benefits of Lifetime Mortgages?

If you are thinking about a Lifetime Mortgage, sometimes called an over 55 home loan, here are some of the benefits that they offer?

• Tax-free cash: The money released is tax-free and can be used for whatever purpose you wish, from home improvements to everyday living costs.
• No need for monthly repayments: You do not have to repay the loan or interest until you move into long-term care or die.
• Security: With Lifetime Mortgage, you continue to own and live in your home, and there is a fixed rate of interest that will run for the term of the loan.
• No negative equity guarantee: You will never owe more than your home is worth.
• Drawdown of Funds: You can gain an initial lump sum for whatever reason you have chosen with a pre-agreed limit of funding available for further releases. The benefit of this is that you are only charged interest for the amount you have received.
• Purchase your forever home: Not commonly known but you can purchase properties with a lifetime mortgage, this can enable you to purchase your forever home which previously may of seemed unobtainable.
• Flexible: Many different Lifetime Mortgage products are on the market, with new products being released regularly. These can be tailored to suit your individual needs and circumstances.
• Interest Servicing Options: New innovation within the lifetime mortgage market allowing flexibility in servicing the “roll up” interest, which ensures more equity remains available within your home. These payments can be structured from £50per month, to 25%, 50%, 75% or 100% of the monthly interest payments.
• You can move: If you wish to move home, you can do so as long as it meets your lender’s terms.
• Leave an inheritance: Some Lifetime Mortgage products allow you to ringfence some of your home as an inheritance for your beneficiaries.
• IHT: Equity release can reduce the value of your estate, and this can be useful in reducing your Inheritance Tax Liability.

What are they?

Simply put Wills are you wishes in death, and Lasting Power of Attorney are your wishes in life, should you become incapacitated in any way. They should be drawn together so that you are protected Now and into the future.

What is a Will?

A Will is a legal document which allows you to express your wishes about the people you want to inherit your money, property and possessions (known as your estate) after you have passed away.

Sometimes known as your last Will and testament, it should include information such as how you would like to distribute your assets, who you would like to bring up your children and what sort of funeral you would like. If you die without writing one, people you care about might lose out, as your estate will be distributed according to strict Intestacy rules.

Despite the knowledge of the importance of Wills, more than 1 in 2 adults do not have a Will. This is mainly due to the thought of death, and its something to deal with later in life.

From the simplest Will to the most complicated estate you can get a professionally written Will drawn up – all from the comfort of your own home.

A well drafted Will enables you to

• If you have children, you can clearly state what you will be leaving them with, also who is to Act as guardians until they reach adulthood.
• Protect your estate from those you don’t wish to inherit: if you have estranged family, or  separated from your partner, you can ensure that they don’t receive anything that belonged to you
• Ensure your beneficiaries’ inheritance is protected.
• Make bequests and guardianship for your pets.
• State what your funeral wishes are to ensure your loved ones are aware.
• Ensure that sentimental items go to the beneficiaries of your choosing.

Also a properly drawn Will can prevent

• Family disputes: Limit the chances of any family disagreements by clearly stating what you’d like to leave and to whom
• Assets going to the wrong people: If you’re separated from your husband or wife and not on good terms, the last thing you’d want is for them to inherit
• Having to second guess what you would have wanted: Your wishes would be clearly stated in the Will
• People you don’t want inheriting your estate: With a clearly written ‘exclusion clause’, people who you do not wish to leave anything to, will not be able to inherit from your estate, nor will they be able to contest your Will.

What are my options for making a Will?

There are different options for making a Will. Choosing the right one is the most important decision you need to make.

Do it yourself

If cost is a concern when making your Will, you can always make a Will yourself for little cost, either online or templates.

Making your own Will at home, there are some things you’ll need to be aware of before you do:

• Make the instructions very clear, leaving no errors or vagueness
• There are set guidelines for Will making which need to be adhered to
• Do not over complicate but also cover all of your wishes
• Mistakes will be very hard if not impossible to correct
• There is no legal protection
• Correct signing and later storage of the Will
• You may/should want to consider an expert to ensure that your wishes are accurately documented.

Get it done professionally?

A qualified estate planner provides more than a document preparation service, they’re a Trusted expert. They will advise you on the best way to protect your family and your assets in the manner you choose.

Trusted estate planning service offers:

• No hassle: Your estate planner will handle everything either preferably in person, or over the phone, email or Zoom so you can stay in the comfort of your own home
• Service of the highest standard: If you do decide to go ahead, you’ll be guided through the process at your own pace
• Dedicated and experienced specialist help: You will deal with the person you speak with, NOT an administrator
• In safe hands: Being fully qualified and having gained years of experience
• Transparent pricing: All of our prices are fixed, and are visible prior to commencement
• Everything explained in plain English: We understand the jargon so you don’t have to
• Security: We offer a document security service

What is a lasting power of attorney (LPA)?

A lasting power of attorney (LPA) is a legal document which gives you the choice to appoint a Trusted family member or friend (known thereafter as the Attorney) the authority to deal with your affairs. They would become your legally appointed Attorneys (always advisable to have a minimum of two). It grants them the authority to make decisions on your behalf if you’re no longer able to make them, they become “your voice”.

There are two types of LPA:

Health and Welfare LPA

A Health and Welfare LPA allows you to name Attorneys who you would like to make decisions about your healthcare, medical treatment and living arrangements if you’re no longer able to. For example, if you capacity through illness or accident and you can no longer communicate.

Your Attorneys, via the Health and Welfare LPA will step in to make decisions for you on your behalf regarding your treatment and other aspects of your life.

Property and Financial Affairs LPA

A Property and Financial Affairs LPA allows you to name Attorneys who can deal with any money, bills, insurances or property that you own in England or Wales if you can no longer do this yourself.

Why should you make an LPA?

Setting up an LPA means your family will avoid potentially lengthy and costly court proceedings to access funds to pay for your care if you do lose mental capacity. You can make your LPA’s in preparation of when you could need them in the future as they are a lifetime legal document, too many times they are left until they are needed which inevitably is too late.

It’s important to think about what you want to do carefully and ensure the Attorneys you trust to fulfil your wishes.

Setting up an LPA means your family will avoid potentially lengthy and costly court proceedings to access funds to pay for your care if you do lose mental capacity.

What happens if I don’t have a lasting power of attorney?

Don’t assume that someone can automatically step in and help if you’re no longer able to look after your own affairs. Your spouse or family cannot do this without permissions. Therefore, if you’re unable to access your bank account, family members will need to become a ‘deputy’ to use your finances. The application is made through the courts, and it can be very time consuming, expensive and needs to be renewed annually.

Whether you’ve got utility bills to pay, a mortgage or other outstanding contracts, your family members may find themselves in a situation where they’re unable to help you.

Having a lasting power of attorney can prevent these very stressful situations and secure the support you need.