If you’re over 55 and a homeowner, chances are you’ve built up significant value in your property – especially if you’ve owned it for many years. You may be wondering: Can I access some of that value without selling or downsizing?
The answer is yes – through a process known as equity release.
At HFA Later Life, we help homeowners explore how a lifetime mortgage could offer financial flexibility in retirement, all while continuing to live in the home they love. Here’s what you need to know if you’re considering releasing equity from your home.
What Does ‘Releasing Equity’ Mean?
Equity is the difference between your home’s current market value and any outstanding mortgage or loan secured against it. If your home is worth £250,000 and your mortgage is fully paid off, you have £250,000 in equity.
Releasing equity means turning some of that value into tax-free cash – typically through a lifetime mortgage, which is a loan secured against your property that doesn’t need to be repaid until you pass away or move into long-term care.
Who Is Eligible To Release Equity From Their Home?
To qualify for a lifetime mortgage, you usually need to:
• Be aged 55 or over
• Own your home (or have a small remaining mortgage that will be cleared)
• Live in the property as your main residence
• Own a property that meets lender criteria (some exclusions may apply)
Each lender has slightly different criteria, but we help you understand what you qualify for and how to maximise your options.
What Can the Money Be Used For?
Once released, the funds are yours to use as you wish. Most clients use the money to:
• Supplement retirement income
• Clear existing mortgage or unsecured debts
• Help children or grandchildren financially*
*If you give money away the recipient may have to pay inheritance tax in the future.
• Renovate or adapt their home
• Fund private healthcare or long-term care needs
• Take that long-awaited holiday or enjoy life more comfortably
There are no restrictions on how you spend the funds — and in many cases, you can choose to take a lump sum or set up a drawdown facility for future needs.
What Are the Alternatives?
Equity release isn’t your only option. Depending on your circumstances, it may also be worth considering:
• Downsizing
• Using savings or investments
• Remortgaging to a retirement-interest-only mortgage
• Asking family for support
We’ll help you weigh up all the possibilities so you can make a well-informed decision.
Speak to a Specialist
If you’re wondering whether you can release equity from your home, the first step is a conversation — no obligation, no pressure.
At HFA Later Life, our experienced advisers will look at your full financial picture, talk through your goals, and help you decide if equity release is the right solution for you.
Visit www.HFALaterLife.uk to arrange your free, no-obligation consultation and get the clarity you need.
Important Notice:
Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion schemes.
This is a Lifetime Mortgage. These are only applicable to those 55 and over, and it could affect eligibility to state means-tested benefits and the inheritance you may leave. To understand the features and risks, ask for a personalised illustration
There may be a fee for advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500.
