Will there be anything left for my family to inherit?
With an over 55 equity release scheme you can make sure that you leave something to your loved ones.
Equity Release through a Lifetime Mortgage
With a Lifetime Mortgage, on your death (or second death for joint plans) the original loan plus subsequent interest must be repaid; anything remaining goes to the beneficiaries named in your Will. However, you can elect to ‘protect’ a percentage of the eventual sale of your home, ensuring a guaranteed inheritance is available.
Lifetime Mortgages that are offered by members of the Equity Release Council come with a ‘No Negative Equity’ guarantee, meaning your heirs will never be left owing the lender money once your home has been sold.
Repaying the loan and interest to the lender would normally be done by the administrators of your estate selling the property; they would also make sure that any remaining amount is correctly apportioned to your named beneficiaries.
With a Lifetime Mortgage, if your heirs wish to the retain the property, they can normally do so if they repay the total amount owed to the prover within six to 12 months of your death.
Equity Release through a Home Reversion plan
With a Home Reversion plan, you sell an agreed percentage of your property to the home reversion company; when the property is eventually sold, the proceeds are split along the same percentages. For example, if you sold 40% of your home, the home reversion company would take 40% of the proceeds of the sale and your heirs would be awarded 60%.
It is not normally possible for your heirs to retain the property under a Home Reversion plan.
‘I felt that our 55+ Equity Release adviser was giving me honest advice and always acting in my best interests.’NE, successful over 55 equity release scheme applicant, Kent