Availing of a Lifetime Mortgage

You have decided to avail of an Equity Release Loan.  You have chosen to maximize the value of your property in the safest way possible through legitimate and expert equity release providers through the assistance of http://www.expertequityrelease.co.uk/index.php.  Expert Equity Release has given you options:  the Lifetime Mortgage, the Drawdown Plan, and the Home Reversion Plan.  You are interested in the Lifetime Mortgage option.  What is a Lifetime Mortgage?  And what are the advantages and disadvantages of such option?

An Equity Release Lifetime Mortgage is an example of an equity release scheme.  The mortgage is secured by your house.  The mortgage is paid through the sale of your house following your death, or when you choose to live somewhere else.  This type of mortgage releases the equity tied up in your property as a tax-free lump sum.  There are no monthly repayments and you can spend the money on whatever you like.  An alternative to the tax-free lump sum is taking the money as a regular income.  It all boils down to what you want and how you want it.  An equity release through a lifetime mortgage is a safe way to enjoy the value of your property while retaining ownership over it.  A Lifetime Mortgage is available to homeowners aged 55 years or above.  An advantage of this mortgage plan is that it’s tax-free; occupancy of your property is guaranteed for life.  The loan will be considered as a debt against your estate, therefore it will be deductible against your inheritance tax liability.  On the other hand, there are some disadvantages in taking a Lifetime Mortgage over your house.  Inheritance you will be leaving your children shall be lessened; there is an Early Repayment charge if you pay off the plan early; and you could have raised more money if you had chosen the Home Reversion Plan instead.

Releasing equity through a Lifetime Mortgage is safe because you are assured of full regulation by the Financial Services Authority.  This is an independent body that insures financial services meet certain standards.  What’s more, Expert Equity Release only recommends equity release providers who are members of SHIP (Safe Home Income Plan), an organization wholly dedicated to the protection of planholders.  Plans include a ‘No Negative Equity Guarantee’ which means that the amount owed by the planholder will never be more than the value of the property, and no debts shall be left to the estate.