A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
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Life Time Mortgages
Lifetime mortgages are designed to help clients stay in their homes by unlocking capital tied up in their property.
Lifetime Mortgages and Drawdown Lifetime Mortgages (Roll-Up Loans with no monthly payment)
A Lifetime Mortgage is an equity release product designed for clients aged 55 and over. The monies released can be taken as a tax free lump sum, regular withdrawls or a combination of the two, some providers also offer the option of a cash reserve facility.
The client still owns the property and can live there for as long as they wish, Life Time Mortgages can be arranged in two ways .
Lifetime Lump Sum and a Lifetime Lump Sum with an added Reserve Facility, they both have the option to make no monthly repayments, most providers will offer a client a fixed rate for life, this is known as a Lifetime Fixed Rate.
The interest is rolled up and and paid eventually from the sale of their home on death or should a client enter into long term care, the client can also elect to make monthly interest payments to the lender to defer the roll up of any interest.
Lifetime Lump Sum
With this product a client can take advantage of a tax free lump sum, the amount will depend on their age which is usually or 55 and over, the property would have to have a minimum value of £70,000.
Lifetime Lump Sum with Reserve
A client can take advantage of a combination of a tax free lump sum and retain a cash reserve for future use , there is no interest to be paid or any interest rolled up while the cash is on reserve, the cash will only accrue interest when it is drawn down.
Tax Free Cash
The amount of tax free cash that can be taken can be used for any legal purpose ie,
- Home Improvements
- Supplement your current income
- Holiday / Car
- Family Gift
- House Purchase
- Deposit for first time buyer children/grand children
- Replace an Existing Interest Only Mortgage
There is the option to sell your property at any time, in most case you can transfer the loan to a new property should you wish to move, the client retains ownership of the property until it is sold.
In some cases clients can apply for higher cash releases by using a Lifetime Mortgage, this could be available due to their lifestyle, being a smoker, existing health problems, blood pressure, diabetes, heart conditions etc, usually the more serious the condition the more cash that can be released!
A Lifetime Mortgage is a specialist product of which you need Independent advice. At Ayton Law Financial services we can offer you products from the whole of market, we are not restricted to only one provider.
We research the Equity Release market on a daily basis, this keep us up to date with the any new products or deals that become available.
If you are considering a Lifetime Mortgage or just wish to chat about your options then please do not hesitate to call me or email for further information.
Tel Barry Fox 01642-659500
A LIFETIME MORTGAGE CAN QUICKLY ERODE THE REMAINING EQUITY AND AS A RESULT DILUTE THE VALUE OF THE ESTATE AND DEPRIVE BENEFICIARIES OF EXPECTED WEALTH.
WITH EQUITY RELEASE THIS HAS TO FIT A CUSTOMER'S NEEDS, CIRCUMSTANCES AND PREFERENCES, WHERE THE BENEFITS NEED TO OUTWEIGH THE DRAWBACK AND BE MORE SUITABLE THAN ALTERNATIVE METHODS OF RAISING FUNDS.
THERE ARE OTHER ALTERNATIVES TO EQUITY RELEASE WHICH WOULD ALSO NEED TO BE CONSIDERED SUCH AS RAISING FINANCE FROM LOCAL AUTHORITY OR AVAILABLE GRANTS; TRADING DOWN OR EVEN SELLING THE PROPERTY AND RENTING. THERE MAY BE MORE SUITABLE METHODS OF RAISING THE FUNDS YOU NEED INCLUDING AVAILABILITY OF A CONVENTIONAL MORTGAGE. THERE IS ALSO A NEED TO ASSESS ANY IMPACT ON AN INDIVIDUAL'S TAX POSITION AND STATE BENEFITS.
IT IS ADVISED THAT CUSTOMERS SEEK INDEPENDENT LEGAL ADVICE BEFORE ENTERING INTO A LEGALLY BINDING EQUITY RELEASE CONTRACT.
A LIFETIME MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION
LIFETIME MORTGAGES ARE A SPECIALIST AREA WE ARRANGE THIS TYPE SCHEME THROUGHOUT TEESSIDE, MIDDLESBROUGH, ACKLAM, MARTON, NUNTHORPE, STOCKTON ON TEES,SALTBURN -BY-THE-SEA;HARTLEPOOL AND DARLINGTON, ; NORTH YORKSHIRE,WHITBY: YORK, LEEDS AND HARROGATE, AND TYNE & WEAR: SUNDERLAND,AND CUMBRIA,TEES VALLEY, NEWCASTLE UPON TYNE, COUNTY DURHAM,BISHOP AUCKLAND,BARNARD CASTLE; AND GATESHEAD.IT IS IMPERATIVE YOU GET SPECIALIST ADVICE IN THIS AREA,THIS CAN BE IN YOUR HOME,OR OUR OFFICE.