Retirees have the option to access capital by choosing from two types of equity release: home reversions or lifetime mortgages.
Equity release is an increasingly popular way for retirees to supplement their pensions by raising capital from their homes, without the need to downsize or move. Under a home reversion scheme, the homeowner sells either a portion or the entire property to an investor at a discounted price, based on their age. In return, the homeowner receives a guaranteed lifetime lease, allowing them to remain in their home for the rest of their life. Although these schemes are now fully regulated, the required documentation can be complex. At Burrows, we possess extensive knowledge and expertise in this particular area.
Lifetime mortgages offer either a lump sum or monthly income tax-free payments. No repayments are required until the house is sold, and the interest simply accumulates with the amount borrowed. Many lenders now offer these schemes, but their complex legal aspects still require professional advice. Our firm has extensive experience in this field.
Get in touch with Janice Bartlett, Roy Thakkar, or Alexandra Bartlett by either calling 0208 904 7725/4150 or sending an email.