Let your Home fund your Holiday Home

Let your Home fund your Holiday Home

If you are a homeowner then for years, you have been paying into one of the best investments you can make, your home. To do this you have probably made other sacrifices along the way but your decision to own your own home is justified as the Nationwide House Price Index reported a 537% rise in house prices in the last 30 years, making your home like an investment. As the value of your home rises and your mortgage reduces, you have probably gained considerable equity.

Now you can take advantage of this home equity using modern, regulated financial tools that allow you to safely and flexibly access your property wealth, tax-free, to spend as you choose. So all those earlier sacrifices can now be repaid to you by drawing on your equity to enjoy the financial benefits of this investment, without needing to sell it. Known as Lifetime Mortgages, this form of equity release has risen in popularity by 49% in 2 years, so much so, that blue-chip companies such as Aviva, LV= and Legal & General are now the leading providers.

One alternative would be to sell up and move to a smaller property to release funds to spend on other things. This suits some people but there are also some disadvantages to this such as all the hassle of selling, buying & moving. Moving to a smaller home when you are used to your own can also feel like a step backwards and of course you lose the benefit on the rise in value of your larger property. Recent research by top 4 global accountancy firm, KPMG, suggests the average house price could be a whopping £900,000 by 2034 so it’s highly possible that your property price will continue to rise in the long-term. This can help offset any interest you’ve elected not to pay if that is your preference.

So, how does it work?

If you are aged 55 or over, you can receive a tax free lump sum from the equity in your property.

You can use this to help fund your holiday home or for any other purpose.

There is no fixed term, it can run for your entire lifetime or until you or your estate sell your property.

No repayments are required during your lifetime, although you can opt to if you prefer.

A fixed rate of interest is applied, so you know exactly how much you will owe

You will never owe more than the value of your home

You retain full ownership of your home, for life.


Important Facts

Something you should consider is future inheritance, as by taking money out of your property now will of course leave less to leave at a later date. You should find the right balance between taking what you want now and leaving some for the future.

What you should also consider is that having more money in the bank can affect your entitlement to means-tested State Benefits. You can secure an amount but not draw it down into your bank until you need it, this will also save you paying interest on it.

Next Steps

We have selected a leading specialist in Lifetime Mortgages to provide our customers with further information they can rely on. The first step is to find out how much you can release by using our calculator shown below. You could also watch our short video below that also explains things in more detail. Alternatively, you can download a brochure that also explains the benefits of Equity Release.

If you use the calculator you will also receive a complimentary guide in the post which covers equity release in more detail. Alternatively, you can request the figures and guide by calling 0808 281 8692 for free. This is a Lifetime Mortgage, to understand the features and risks, ask for a Personalised Illustration. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,295.

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