Home Reversion Plans - Lifetime Mortgage - Retirement Advice

Home Reversion Plans - Lifetime Mortgage - Retirement Advice

Equity release is becoming increasingly popular within the United Kingdom, but a lot of people are unsure what it actually is. In essence, equity release is a way in which you can gain access to the money that is tied up in your property once you retire.

At PLS Solicitors we have can give you the equity release advice you need, as we know that it can be a confusing process sometimes. Equity release is mostly used when planning your retirement, whether you are interested in increasing your retirement income, carrying out home improvements, paying off the remainder of your mortgage or simply topping up your retirement fund.

There are two main types of release equity are:

Equity mortgage release

This form of equity release on property is essentially a loan consisting of the full value of your home. You will not have to pay interest on the loan while you are alive and you can use the money you gain from it in any way you like. After both you and your partner have died your home will be sold and the full amount of your loan plus interest will be deducted from the sale.

Home reversion plan

With a home reversion plan you can sell a percentage of your home to a reversion provider and will be given a lump sum in return. You will continue to live in your home as normal until both you and your partner die, after which your home will be sold and the loan will be repaid to the lender. Any money that is left over from the sale of your house will be passed onto yours or your partner's estate.

If you are interested in taking out an equity release lifetime mortgage or a home reversion plan to release equity in property, get in touch with PLS Solicitors today.