Best Financial Advisors in Christchurch

There are two main types of equity release: lifetime mortgages and home reversion plans. Both types of plan are regulated by the Financial Conduct Authority. By using an equity release product, a homeowner can draw a lump sum or regular smaller sums from the value of the home, while continuing to live in it.

A home reversion plan could allow you to sell all or part of your home in exchange for a cash lump sum while retaining the right to remain in it, rent free. With Home Reversion, the provider will purchase all or a part percentage of your house. You know precisely what portion of your property you have parted with and, equally, what has been ring-fenced for later use, possibly to leave in a Will. The percentage you retain in your property will always remain the same regardless of the change in property values, unless you decide to take further cash releases. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.

Before taking out an equity release plan, you should check what the alternatives are. You could visit moneyadviceservice.org.uk/debt for advice on debt. You may have other investments, savings or assets to draw on, or you may wish to continue some form of paid work. You could downsize to a smaller property or one of lower value. Downsizing may give you maximum value from your home, but you may decide that you do not want to leave your home or move away from family and friends, you should also consider the cost of moving. You may also want to think about renting a room in your home, or taking a loan from family and/ or friends. At Harbour Equity Release we will discuss the alternative options available to you so you can decide whether any of these meet your requirements.