Equity Release In London: Discover Your True Wealth Potential in 2023

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Table of Contents

Updated November 2023 -Author Paul Murphy 

Later Life Finance Limited. 

Equity Release London: How much tax free wealth could you unlock?

If you’re a homeowner over 55, you could enjoy the benefits of equity release in London and join 1000’s homeowners who have safely raised tax free wealth to enhance your best years in later life. As a specialist broker, Later Life Finance can help you navigate your options to identify the most suitable solution for your requirements. 

Whether you need a remortgage solution, you’re considering inheritance tax planning, gifting an early inheritance, or simply enjoying the retirement you truly deserve,  your home is also an asset which can be used to transform your retirement.

Increasing numbers of homeowners in London are releasing equity to boost their finances with modern, flexible lifetime mortgages which can offer a realistic solution for homeowners in London considering equity release. 

If you are also considering how equity release affects inheritance tax, this is an area worth investigating further with our experts at Later Life Finance, as many of our clients have tapped into their wealth as part of a wealth planning strategy. 

We are an FCA authorised broker for your peace of mind and safety, and we’re members of the equity release council. 

Understanding which equity release interest rate, plan and lender suit your specific requirements in crucial.

For example, your current and longer-term plans must be fully considered. 

We have access to the best equity release companies in the UK available to homeowners in London. 

Equity Release percentage by age in London

the older you are the higher the equity release percentage is infographic

Equity release adviser London: Finding experts you can rely on

If you are considering releasing cash from your home, there are many questions you will have prior to deciding whether equity release is suitable. 

Our expert equity release advisers review all your options and provide an independent broker service you can rely on. 

In this comprehensive guide, we’ll explore various types of equity release in London, the factors that affect how much equity you can release, and the importance of seeking independent, expert equity release advice when navigating the world of equity release in London. 

Our experts provide equity release across London to ensure you find the best solution for your plans, and have access to the best equity release companies, with the lenders offering plans in the top 10 equity release companies in London

What can you use equity release for in London?

Help family with a gift

Gifting an inheritance and IH tax planning

Dream Holiday

Equity release can help you fulfil a dream holiday destination

Cash Lump Sum

Retirement planning with a lump sum or drawdown facility

Pay Off your Mortgage

Repaying your mortgage to enjoy the retirement you've worked for

Comparing your options with independent equity release advice in London

If you are considering a lifetime mortgage in London, our advisers will explain how the different features can compliment your current and longer term plans to ensure any proposed solution is future proof. 

Afterall, the last thing you want is a surprise early repayment charge if your circumstances change in the future. 

Later Life Finance provide advice on all equity release schemes to help you understand all your options when understanding how much equity you can release from your home. 

equity release advice in London image of couple discussing releasing cash

Equity release mortgage London: Comparing the top deals

Equity release mortgages offer flexible solutions for raising tax-free wealth from your property in London.

There are several types of options available to suit different requirements, each designed to meet specific needs, from lump sum lifetime mortgages to drawdown plans, interest only lifetime mortgages and retirement interest only mortgages.

We compare the whole market to ensure you secure the best solution for your requirements. 

The percentage of your home’s value you can borrow using a lifetime mortgage is based on the youngest homeowner’s age and is usually between 20% and 55%

For example, a single homeowner aged 55 could release 21%. 

If you’ve already taken equity release and have used your drawdown facility and need a further advance, contact us for help and we will explore this for you. 

Lenders typically assess the value of your property through a professional surveyor appointed by them.

Later Life Finance help you discover and compare all your options for releasing equity from your home. From lump sum to drawdown plans, flexible repayments to downsizing protection, there are lots of features to compare and consider. 

couple discussing equity release in london on their yacht

Finding the best equity release interest rates in London

Interest rates play a crucial role in the equity release process, as they impact the overall cost of the product and the amount of inheritance left for beneficiaries.

Our qualified equity release advisers compare equity release interest rates from the whole market to find the best deal for your specific plans. 

We compare the top 10 equity release companies to help you discover your options. 

Understanding the different rates and how they can affect your equity release product, is essential when making an informed decision about whether to proceed with this type of financial arrangement.

A senior man gardening and discussing equity release in london

Lifetime mortgage advisers in London: Getting independent expert advice

Lifetime mortgages have evolved over the past 10 years into a mainstream source of finance for the over 55’s. 

To fully understand the features available, it’s crucial to obtain independent advice and delve into your options to make voluntary repayments, and compare the entire market to ensure a lifetime mortgage is the most suitable solution for your requirements.  

We help you explore and discover flexible equity release solutions to enjoy your retirement years in financial security. 

Modern plans offer a fantastic range of features including voluntary repayments, overpayment options with the option to downsize and repay or port the mortgages.

Later life finance are an independent lifetime mortgage broker specialising in lifetime mortgage advice in London and across the UK. 

Interest only lifetime mortgages in London

Interest-only lifetime mortgage is another valuable tool that helps estimate the amount you can borrow and the interest payments required. 

This type of calculator can provide you with an accurate estimation of the amount you can borrow and the monthly payments you’ll need to make, helping you decide if an interest-only lifetime mortgage is the right option for you.

Lifetime mortgage calculator in London

A lifetime mortgage calculator is designed to estimate the amount you can borrow through a lifetime mortgage based on your age and property value. By using this type of calculator, you can get an idea of how much money you can potentially release from your home and compare different loan options to see which one best suits your needs.

With a lifetime mortgage calculator, you can easily compare different loan options and determine which one is right for you.

  • Equity release in London provides access to tax free cash from your home, factors such as age, property value, health and lifestyle are taken into account for remortgaging to release equity

  • When sourcing the best later life mortgages in London, our equity release mortgage calculators provide lifetime mortgage figures to help you establish the percentages of lending available on these later life mortgages.

  • Compound interest and lifetime mortgage calculators are useful tools for financial planning decisions with releasing equity in London. 

  • Lump sum and drawdown solutions compared side by side to find the most cost effective solution. 

  • It is important to understand fees associated with equity release products before committing to one. Independent advice should be sought through qualified advisers. 

  • Later Life Finance provide a lifetime mortgage broker service to ensure you secure the best terms for your requirements if you choose to release equity from your home in London. 

lifetime mortgage experts in London

To find a suitable equity release plan, we work with reputable providers to source the most suitable plan for your requirements. 

By using our calculator, you can get immediate quotes for the cash lump sum you may receive without having to divulge any personal information.

north london equity release advice image of Primrose Hill skyline

The Equity Release Council is a UK-based trade body that represents over 700 companies involved in equity release mortgages. Their primary aim is to uphold high standards and provide consumer protection within the equity release industry.

By following their guidelines and working with a financial adviser who is a member of the Council, you can ensure that you receive the highest level of service and support throughout the equity release process in London. 

Seeking independent advice is crucial when considering equity release, as it helps you weigh the risks and benefits associated with this type of financial arrangement. 

In this section, we’ll discuss the importance of finding a qualified adviser and understanding the role of the Equity Release Council, a trade body that promotes high standards and consumer protection in the equity release industry.

The Equity Release Council is a not-for-profit organisation that sets out a code of ethics for equity release in London. 

London Compound interest calculators

When considering equity release, it’s important to understand the two main types of products available: lifetime mortgages and home reversion plans. 

Each type of product has its own set of advantages and disadvantages, and understanding these differences can help you make the most informed decision about which product is best suited for your individual circumstances.

It is important to research the different products available and to speak to a qualified financial advisor.

Lifetime Mortgages in London

A lifetime mortgage is a loan secured against your property, with the amount borrowed and interest repaid when you die or move into long-term care. This type of equity release product allows you to:

  • Access the value in your home without having to sell it

  • Provide you with additional funds to meet your financial needs

  • Retain ownership of your property

It is important to consider the implications of taking out a lifetime mortgage, as it is a long term mortgage.

How much can I borrow with a lifetime mortgage?

The maximum loan-to-value on a lifetime mortgage is based on the age of the youngest homeowner

From age 55 you could release around 22% and this increases each year by 1% up to around 50% at age 80. 

For example, a 60 year old could release around 29%, a 70 year old could release around 40% and an 80 year old could release around 50%. 

What are the typical percentages available with a lifetime mortgage?

the older you are the higher the equity release percentage is infographic

Lifetime mortgage calculator: How much equity can i borrow?

This depends on various factors such as property type and health. 

As experts in Later Life Mortgages and equity release, later life finance are well positioned to answer this and all your other questions. 

To compare the top 10 equity release companies, we have reviewed and listed the best providers to help you compare your options, including lender features, such as downsizing protection, voluntary repayments and more. 

west london equity release street sign and row of houses

How much equity can i release from my home, and what can you borrow the cash for?

In conclusion, equity release in London can be valuable solution in helping you estimate the amount of money you can release from your property, as well as understanding the various factors that can affect calculations. 

By exploring different types of calculators, seeking independent advice, and considering additional costs, you can make a more informed decision about whether equity release is the right financial solution for you. 

Remember, the key to a successful equity release experience is understanding your options and making the best choice for your individual circumstances for releasing equity from your home in London. 

How does a lifetime mortgage in London work?

What is a lifetime mortgage and how does it work?

By allowing homeowners to borrow a portion of their property’s value, with interest accruing over time and repaid upon death or moving into long-term care.

If no voluntary repayments are made, the compounding interest can grow rapidly, so it’s essential to be aware of the total amount that will need to be repaid in the future.

Drawdown lifetime mortgages allow you to stage the borrowing over a longer timeframe which reduces the amount of interest charged on the money borrowed. 

How long does a lifetime mortgage take to arrange in London?

A lifetime mortgage application usually takes between 5 and 10 weeks in total.
The process will depend on whether you have an existing mortgage to repay, any title changes and how efficient your solicitor is.
Working with an efficient broker is also important, as they will keep on top of the whole process for you
Having an experienced expert managing your application will ensure the lending underwriters, solicitors and yourself are kept up to speed. 

The most popular reasons for using lifetime mortgages in London

top reasons for equity release companies & percentages infographic

How do you calculate a lifetime mortgage?

How to calculate a lifetime mortgage, and what is the maximum loan to value of cash available?

There are a few factors that affect how much equity you could release from your home with a lifetime mortgage.

It’s important to remember each lender has different criteria.

As a guide, the following information is used to calculate how much money you could release. 

The factors used to calculate this are:

  • Your age (or the age of the youngest person if you own the property jointly)
  • The type of home you own (house/flat)
  • Your home’s valuation (lenders carry out a valuation)
  • Your health and lifestyle 
  • Whether you have a leasehold on the property
  • How you arrange your lifetime mortgage (as one cash lump sum, or a lump sum with a cash reserve facility)
  • Choosing a lenders inheritance guarantee to leave a set percentage of your home’s value behind

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Do you pay monthly for a lifetime mortgage in London?

You don’t have to make any regular payments with a lifetime mortgage. 

You are entitled to make regular voluntary repayments to maintain control of the interest. 

For example, if you want to avoid compound interest accruing, you could pay the interest back each month. 

If you choose to do this, there will be no compound interest applied, so long as you continue to make these payments. 

Can you be refused a lifetime mortgage in London

You could be refused a lifetime mortgage if your home is non standard construction or close to commercial premises. 
Eligibility for a lifetime mortgage is not income or affordability based, which means the lender is more interested in your home being suitable security for lending than your income or credit status. 

What are the different types of lifetime mortgages in London?

The two main types of Lifetime Mortgages are lump sum and drawdown.
The loan is secured against your house. You receive a one-time, tax-free, cash payment.
Interest only lifetime mortgages are available which allow interest payments to avoid or reduce compound interest being applied to help preserve more equity in your home.

When must the lifetime mortgage be repaid?

Lifetime Mortgages are designed to last for your lifetime.  They are repaid when you (sole application) or, if you’re borrowing jointly, both of you die or move out of your home into long-term care. 
You can still move home and port the mortgage with you.