Isn’t it time your house started working for you?
The information provided here is intended for investment customers only. If you wish to purchase a holiday home as a lifestyle choice primarily for your own use, please see our separate Lifestyle pages. The Dream Lodge Group is not authorised to provide financial advice. You should seek independent legal, financial and taxation advice as appropriate in connection with any planned investment.
For years, you have been steadily building up the equity in your home by making mortgage payments every month. Sometimes perhaps at the expense of other goals such as savings, holidays, helping the family out, and home improvements.
Your decision to forgo these goals is justified though as the Nationwide House Price Index reported a 537% rise in house prices in the last 30 years, making your home like an investment.
There are ways to take advantage of this home equity using modern, regulated financial tools which allow you to safely and flexibly access your property wealth, to spend as you choose.
Known as Lifetime Mortgages, this form of equity release has risen in popularity by 49% in 2 years, so much so, that blue-chip companies such as Aviva, LV= and Legal & General are now the leading providers.
How does it work?
It is designed for people aged 55 and over
You receive capital from your home
There is no fixed mortgage term, it can run for your entire lifetime or until you sell your property
There are no repayments required during your lifetime, though you do have the flexible option to do so
A fixed interest rate is applied, so you know exactly how much you will owe
You will never owe more than the value of your home
You retain full ownership of you home, for life.
One thing to consider is future inheritance, as by taking money out of your property now there will be less to leave at a later date. Try to find the right balance between taking what you want now and leaving some for the future.
Also, having more money in the bank can affect your entitlement to means-tested State Benefits, which is something that can be investigated on your behalf to minimise the effects.
Recent research by top 4 global accountancy firm, KPMG, suggests the average house price could be a whopping £900,000 by 2034 so it’s highly possible that your property price will continue to rise in the long-term. This can help offset any interest you’ve elected not to pay.
One alternative would be to sell up and downsize, but there is a certain level of upheaval in doing this, you have to live in a less-valuable house, and you may miss out on future property price growth as you are on a lower rung of the property ladder.
We have partnered with a leading specialist in Lifetime Mortgages to provide our customers with further information they can trust. The first step is to find out how much you can release by using our calculator.
You will then receive a complimentary guide in the post which covers equity release in more detail.
Alternatively, you can request the figures and guide by calling 0808 281 8692 for free.
This is a Lifetime Mortgage, to understand the features and risks, ask for a Personalised Illustration.
Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,295.