Sydney Charles Group Limited

Selling the family home is a major decision and one which a fairly large number of people hesitate to do, even though they would like to benefit from some of the equity in the property. An equity release mortgage enables them to release some of the funds without disposing of the property. This can pave the way for over 55s to supplement their income in retirement or simply fund an major holiday or purchase. The cash is released by taking out a loan which is then paid off on the death of the borrower. Another option is to sell a share of the property in return to the money.

Equity release schemes are now regulated by the Financial Services Authority and this type of loan can offer a sensible solution for older clients who are asset rich but cash poor.

By considering a Safe Home Income Plan, borrowers reserve the right to live in their property for their whole life or until they have to go into a nursing home and this plan also comes with a 'no negative equity' guarantee. This ensures that, no matter what happens to property prices, the borrower's family can never be left with a debt that cannot be repaid by the sale of the property.