Equity Release

Tumbit Approved Partners

Equity Release UK

Tumbit recommends Key Retirement Solutions for Equity Release in the UK, find out how Key Retirement Solutions can help you here...

Equity Release SPAIN

Tumbit recommends Seniors Capital for Equity Release in Spain, find out how Seniors Capital can help you here...

The idea of equity release is still a relatively new and interesting concept that allows homeowners to release some of the capital tied up in a property that may have greatly appreciated in value in the time since they bought it. The released capital is then invested in a product that generates an extra income and at the same time, allows the homeowner to remain in the same property.

The way this works is that some specialist companies take a stake in the property and become the joint owner, while others arrange a loan on a mortgage type basis. On death or when the house is eventually sold, part of the proceeds goes back to the specialist company or lending institution.

Though this is, in principle, an interesting product, its early history has attracted some misunderstandings. When the company purchases a portion of the property, often set at 50 percent, it is entitled to 50 percent of the selling price - even though the property value may have trebled. In the case of a mortgage type basis, the income on the investment product that provides the extra income must be sufficient to pay the interest on the mortgage. This lessens any income potential and if the product has an equity base, then this may have even more adverse erosion on the capital and income potential.

Maybe you wish to release some equity on a Property that you own in the UK to finance a new life in Spain , or provide you with a better standard of living ?

To learn more about equity release and to see if your property is suitable to provide you with some additional income, why not contact our Equity Release specialist for a free, confidential and no obligation chat?