The Advantages of a Lifetime Mortgage

At Equity Release Experts (http://www.expertequityrelease.co.uk) we offer our clients options on how to fully benefit from loans taken on their private residences.  We make sure that your decision shall be in your best interest and we guarantee that our advice will be impartial in recommending the right Equity Release Provider.  We also encourage that the family and the client’s solicitor be involved in the decision-making process in order that the best possible solution is made. Releasing equity of your property shall be made easier because we deal with clients in plain and understandable English.  The process need not be a confusing jungle of legal jargon because we aim to keep clients well-informed and fully in control in taking out loans.  An option when taking out an equity release loan is a Lifetime Mortgage.

What is an Equity Release Lifetime Mortgage?  It is the taking of a loan with your private residence as security.  However, the amount released is the “equity” or value of your home.  You can now make use of the value released and spend the amount as you please.  The good thing about this equity release by a lifetime mortgage is that the amount is tax-free.  Either you can get it as a lump sum or as a regular income.  The loan will be repaid by applying the proceeds of the sale of the house, usually after death of the client or the client’s partner, or when the client chooses to move from the property.  Payment of the lump sum plus interest accruing shall be taken from the estate.

This means that you retain full ownership of your house during your lifetime.  You still enjoy the benefits of any rise in the market since you remain the owner.  You are guaranteed of lifetime occupancy and at the same time you also start to enjoy the value of your property.  There are no repayments required during your lifetime.  Another plus of taking out this option of a lifetime mortgage is that the loan shall be considered as a debt against the estate and would result to a reduction of the overall inheritance tax liability.  A ‘No Negative Equity Guarantee’ under SHIP (Safe Home Income Plans) means that your repayment shall never be more than the value of your property and you will not leave a debt to your estate.  The Lifetime Mortgage is available to qualified individuals who are 55 years old or above and who own their private residences.