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Equity Release Plans Life Time Mortgages

There are too many different types of equity release plans out there to go into detail here but they ultimately offer a loan secured against your home that isn’t repayable until you die or move into long term care. Many of these schemes are offered by large insurance companies. They will not consider a homeowner that are under a certain age. Each company has a different criteria but generally speaking the minimum age is 55 years.

Loan Amount Is Dependent On Your Age


The principle of the loans are that you can take out a loan secured against you home that doesn’t have to be repaid until you die or move into long term care. The amount of money that you receive will be calculated as a percentage of the value of your property. So for example you may be aged 65 and want to take out an equity release plan on your home. Your property is worth around £250,000. You will probably be able to secure a loan against it for around £82,500. This equates to around 33% of the vacant value of your home.

Of course this is very approximate and you can go to the various sites to get a quote for yourself. Just google life time mortgages. A surveyor would need to come along and survey your property so the figure may be less that this. Your Children Will Not Inherit Your Property Of course every company will offer a different plan and care should be taken when taking out a plan like this.

You should involve your family in any decision that you come to as the house will be sold when you die and will not form part of your estate.The insurance company will own your home and will be entitled to 100% of the sale proceeds. This may not seem like a huge sum but don’t forget that there are no monthly interest payments for the loan and the company will also be responsible for any external works that need to be carried out on your property.