EQUITY RELEASE - A BRIEF OVERVIEW

Retirement is a time when you should be able to enjoy the rewards of your hard work and look forward to doing the things you like to do best. It is a time to release your potential.

Retirement is no longer regarded with trepidation, as today we live and remain fitter for longer. As a result your retirement could last for 25 years or more.

Over the years your home will have provided you with fond memories, comfort and security and now it is probably your greatest asset. This asset could provide you with your greatest opportunity, allowing you to unlock the money that is tied up in your home and ensure a more secure financial future.

By releasing some of the value in your home, you could soon have a cash sum in your hands, or an increased income... and still be sitting comfortably.

CASH LUMP SUM OPTIONS...

Releasing a cash lump sum enables you to improve your lifestyle as you are free to use the money for any purpose you wish. You may choose to improve your home, make essential repairs, install facilities which enhance your standard of living or take a holiday. The choice is yours.

LIFETIME MORTGAGE OPTION

With this plan a legal charge is secured on your home and a cash sum is provided, which you may spend as you wish (subject to repayment of any existing mortgage). For as long as you live and so long as you continue to occupy your home, you need not make any repayments on the lifetime mortgage loan. Loan interest is charged at a fixed rate, compounded monthly and added to the lifetime mortgage loan each year.

FLEXIBLE MORTGAGE OPTION

This lifetime mortgage is secured on your home and is repayable from the proceeds of the sale of your home. As well as an initial lump sum, it provides a pre-approved Cash Reserve facility, from which you may make further withdrawals. The initial lump sum must be at least 15% of the total facility (minimum £10,000). Subject to eligibility, the maximum initial amount available is £250,000. Future withdrawals of at least £5,000 may be made from the Cash Reserve at any time between the first and tenth anniversary of the plan, until the whole facility has been drawn.

SHARED GROWTH OPTION

With this plan, part of your property is transferred, in return for a tax-free cash sum, which you may spend as you choose. Repayment is made from the future value of your home at the time of your death or if you decide to sell up permanently. The future value of your estate will be reduced by our agreed share of the sale proceeds of your property.

INCREASED INCOME OPTIONS...

Home income partnership mortgage

With this plan, a lifetime mortgage is secured by a legal charge on the property you own. The loan is used to buy an annuity, paid monthly in advance and guaranteed for life. The lifetime mortgage loan is repayable should you die or move out permanently from the property on which it is secured. Until then, interest is deducted monthly from your annuity at the rate agreed when you joined the plan. The interest is fixed for your lifetime.

Secured income partnership

With this plan, you sell a percentage of your property, in exchange for a lifetime income. At the same time, a right to occupation guarantees that you can continue to live in your home for as long as you wish.