YOUR LIFE – YOUR MONEY

Equity Release

 

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For homeowners and homemovers over 55

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Yates & Co. are pleased to announce continued membership of the Equity Release Council for the benefit of our clients.

Yates and Co are authorised to advise you on equity release which includes lifetime mortgages and home reversion schemes.

Both schemes allow you to live in your home until the last one of you dies or goes into long term care.  The property is then sold.  With lifetime mortgages there is a guarantee of no negative equity so even if the balance on the mortgage exceeds the sale price of your home there is no liability to you or your estate.  If the balance on the mortgage is lower than the sale price then the surplus (less any sale fees etc.) is payable to you or your estate. 

With a home reversion scheme, the property is sold and depending on the initial percentage you sold to the reversion company there may be some surplus for you or your estate.   Both schemes provide an initial lump sum and options to take additional funds in the future. 

We have access to the latest equity release products which include schemes where you have the option to roll up the monthly interest or make monthly payments of some or all of the interest. 

Some lenders now offer the facility to make penalty free partial overpayments of capital.  Other options can be a retirement mortgage interest only scheme which is particularly popular with clients over 55 who currently have an interest  only mortgage on their home and have been advised by their existing lender that the mortgage term is about to end. 

Please remember that although many people use equity release to raise funds on their existing home it can also be used to purchase another property. 

Equity release schemes can be helpful in certain circumstances but are not suitable for everyone.  They can be expensive and inflexible if your circumstances change.  They may also affect your entitlement to state or local authority benefits.

Equity Release: This is a lifetime mortgage or home reversion plan. To understand the features  and risks, ask for a personalised illustration. There may be a fee for equity release advice, the precise amount of the fee depends on your circumstances but we estimate that it will be £995.