Equity Release Plans

The difference between the value of a property and the loans or mortgages secured against it, is known as ‘equity’

Equity Release could be defined as the transfer of interest in the property, from the owner to another party, in exchange for a cash sum, or regular income. The equity is therefore released.

Gone are the days when after you retire you sit in front of the TV, or tending your allotment! You may want to travel, and experience new things, and generally enjoy a full life. A worrying factor however, is the much publicised pension ‘crisis’, state pensions under threat of diminishing, company schemes with low returns, usually due to low contributions. Equity Release is an effective way for homeowners to use their property to increase retirement income, or for cash lump sum payments.

There are two ways in which you can release equity from your property.