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Company Director, Alison Prior, at her desk

Equity release plans; Your house is your lender

Are you surviving on a small pension and limited savings, but have a property that is fully paid for without any outstanding mortgage payments? You could release some of the value in your home to ease the burden of a small pension fund.

Equity release can be a complex process, unless you have the help of a professional financial advisor such as Thompson Prior in Shropshire.

When it comes to equity release plans, a good decision can gain you thousands. Let us help you make the right choice for you and your beneficiaries

How equity release schemes work? We can help you navigate the jargon easily

An equity release plan is a way of unlocking the financial value of your home. In essence these schemes allow you to borrow money against the value of your property, the debt is then repaid from the sale of your property when it comes to calling upon your will.

This can be a good financial option to go for as it allows you to stay in your property until you have either gone into long term care or passed on. If you live with a partner or spouse, don't worry, your home will not be sold for as long as they choose to live there.

It can be hard to navigate the storm of jargon associated with equity release plans and ensuring you've made a sound financial decision can be daunting. Let us help you every step of the way and reassure you that we have vast experience in this area and always put your interests first.

Equity Release is only suitable for certain clients and we always recommend that family are involved in the discussions and decision making process.

*There may be a fee for mortgage advice, the precise amount of the fee will depend upon your circumstances but we estimate that it will be no more than £500.

An example of how an equity release loan works

Mr and Mrs Smith – aged 65 and 64

  • Property Value £250,000
  • Amount required £30,000
  • Reserve amount to call on in future £ 35,000
  • So total borrowing available is £ 65,000*
  • Interest rate of 5.99%

Fees:

  • Valuation fee (paid on application) £170.00
  • Arrangement fee to lender (paid from loan) £500.00
  • Legal Fees (via specialist legal company £375.00**)

* As you draw down the money required so the interest due on that portion starts to ‘roll up’ in the background. When the property is eventually sold (death/long term care etc.) then the £30,000 plus rolled up interest must be repaid from the sale proceeds. At 15 years this figure would be £80,000. The estate to be passed on to beneficiaries (children) would be £170.000 – plus any growth in house prices over that 15 year period

** these can be higher if your property still needs to be registered.

Legal advice is essential if you are looking into equity release as an option. We can recommend a solicitor who specialises in equity release.

***This is a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration

A man holding a small model house.
A strewn collection of newspapers.
Financial receipts next to a calculator and a cup of tea.

A good equity release plan can gain you thousands. Let us help you make the right decision. Call Thompson Prior at our Bridgnorth offices today on 01746 716767