Equity Planning

Equity Release Schemes, Equity Release Plans


Belper Independent Financial Solutions Ltd is authorised and regulated The Financial Conduct Authority. FCA Number 594003

Belper Independent Financial Solutions. Trading Addresses:
10, Chapel Street, Belper, Derbyshire, DE56 1AR

Registered Office:
Unit 6, Heritage Business Centre, Derby Road, Belper, Derbyshire, DE56 1SW.
Registered in England Wales Company No. 8028528.

What is Equity Release?

Equity release is a type of financial solution that can help many home owners unlock some of the financial value held within their home to improve their own financial position. It may be to unlock capital or extra income depending upon your personal requirements.

Why Choose Equity Release?

For many years you may have owned your home. Perhaps now the bulk of your personal wealth is tied up in your property? Are you part of the property-rich and cash-poor society? Many people are. This is a typical scenario for many people today. Property is often the most significant part of a person's wealth, but a part that is illiquid and traditionally a fixed asset.

You may have worked hard for your property during your life. Maybe now is the time for your property to work hard for you.

As you approach retirement or if you are already retired, it could be that your savings are running out or your pension has not realised as much as you had hoped for. It may be that you simply have a need to raise additional funds to help you or your family. Perhaps for you to have the holiday you've always dreamed of? It may be to enjoy a once-in-a-lifetime cruise around the world?

Equity Release Derbyshire

Or it may be to make necessary adaptations to your home or for improvements such as a new kitchen, windows or a bathroom? A luxury car or perhaps a new caravan? Many people choose equity release to pay off existing debts such as personal loans or their mortgage. It may also be used to help finance your children's or grandchildren's future such as higher education costs or help them with a deposit to get them on to the property ladder? It is well known that many first-time buyers are finding it increasingly difficult to afford to buy into the property market and finding a suitable deposit may be impossible for them. Your help may be invaluable to them.

It could enable you to help them now when they need it rather than waiting to help them once you are not around. After all, who is likely to be the beneficiaries of your property in the event of your inevitable departure?

Equity release may be the solution to help raise funds to make these lifetime changes.

How Does it Work?

By negotiation with a suitable Equity Release provider, you can receive a lump sum (or an income in some cases) to fund the financial need you have identified.

Any interest that is due for borrowing the money accumulates and is rolled up until you pay the monies back to the Equity Release Provider. The money is only repaid in the event of the sale of the home used for security or before, should you decide to settle sooner. You normally borrow the money over an unspecified time period, typically until the date of your death. You typically only pay compound interest on the money you have borrowed.

Types of Equity Release Schemes

There are many different types of schemes available. Ensuring you receive the right scheme for your personal circumstances is vital. Some schemes offer guarantees on the future value of your property so you can be sure there will still be a legacy left to your loved ones should that be important to you. There are many other types of scheme too, including Drawdown Equity Release which allows you to release the monies in stages as and when your lifestyle requires it. Contact Belper Independent Financial Solutions who will organise a free initial, no-obligation meeting to discuss your options for Equity Release. Contact us via the "Contact Us" page . >>>

Equity Release Plans, which may be lifetime mortgage or reversion plans, can provide you with financial freedom in retirement. They are not always right for everyone, so it is important to consider the following points:

  • All Plans will reduce the size of your Estate, so it's important to involve your family in your decision. We welcome your family to attend any of the appointments.
  • Equity Release could affect your entitlement to some State Benefits and may affect your tax position. A suitably qualified Financial Adviser can find out what this effect might be, and therefore help find the best solution for you.
  • Equity Release is a lifetime commitment and is only expected to be repaid upon your death or entry into long-term care. Early repayment charges apply if you want to repay the plan early.
  • All plans approved by SHIP (Safe Home Income Plans) allow you to move home if you wish, depending on the provider's criteria and their approval of the new property.
  • With a lifetime mortgage, the compound interest charged means that the amount you owe can grow quite quickly.
  • Think carefully before securing other debts against your home.
  • To understand the features and risks of Equity release, ask for a personalised illustration.