Click here to subscribe to my YouTube channel - Many of your property finance questions can be answered there
About Video Training Audio Training Store Blog Contact Facebook Group Fiver Tribe Login

What is equity release?

THE QUESTION
I've seen a lot of adverts recently for Equity Release, does anyone know how it really works?

THE ANSWER

Equity release has two meanings.

For the general public it refers to a specific type of mortgage available only to the elderly who are asset rich, but cash poor.  In effect it means that they can borrow against their property and use the cash to enhance their lifestyle or pay for needed repairs to their property.

The interest is rolled up, so no monthly payments until they either die, go into care, or sell the property.  

It is also used on some occasions to mitigate Inheritance Tax, as the amount owed at death reduces the value of their estate.

For a property investor it just means refinancing an existing property to release cash so you can use it to invest in more property.

Discover more about intelligent finance at our Property Finance Masterclasses.

 

You can learn more here:

Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.