Are you looking to:
• Clear an expiring interest-only mortgage• Repay a long-standing debt• Increase your income
Are you planning for:
• Inheritance tax• Helping loved ones get on the property ladder
Do you need to:
• Pay for house alterations• Finance long term care
“The older you are, the higher the percentage you can usually release. For example, someone aged 55 might be able to release around 20-30%, while someone in their 80s might be able to release closer to 50-60%.”
-Equity Release Council.
Call us to find out more about using the value of your home to
raise a cash lump sum, additional income or both…
About Us
Hertslife Ltd is authorised and regulated by the Financial Conduct Authority
Hertslife is dedicated to providing the right financial advice to all those seeking security and stability as they approach their retirement years.
Managing Director Garth Bernard has over 30 years experience in providing specialist financial advice. We are committed to using our knowledge of the current market and latest regulations to help people understand about the choices they can make to achieve their personal goals.
Hertslife Ltd are in full compliance with FCA Consumer Duty which means we put your needs FIRST.
Straight forward advice in a simple clear manner
We know that it can sometimes be difficult to understand all of the options that are available when looking for a financial solution. Different companies can offer a wide range of options.
We listen carefully to learn about our customers needs and personal circumstances, and offer straightforward advice or help in a simple, clear manner. That means no technical jargon or abbreviations!
Highest quality guidance and support
Our enduring aim is to ensure only the highest quality, independent financial guidance and support is offered without any pressure!
We make sure that our customers will always feel comfortable, in control and 100 per cent confident in any decisions made – whether that includes an Equity Release plan or not!
From first enquiry to the first meeting, and throughout the consultation, our customers are guided and supported every step of the way.
Why Equity Release?
Equity Release is increasingly the popular option among senior age groups to gain instant access to much needed cash without compromising their future security and stability.
Equity Release has changed
Competitive interest rates… Previously there were only a limited number of products available at high interest rates with unreasonable terms and conditions.
Today many new lenders have entered the market with competitive interest rates and conditions, and are easier to understand. Fixed rates are also available for the entire lifetime of the scheme.
You’re fully protected
Equity release is regulated by the FCA… Financial advisors for Equity Release products must be FCA authorised and possess a relevant Equity Release qualification to give advice.
Under FCA rules, advisers must comply with regulations concerning product recommendations and information provided. Your financial advisor must take reasonable steps to ensure that a product or a plan is appropriate for your needs and circumstances.
DID YOU KNOW
The total equity release lending in 2022 surpassed £5.58 billion, with over 52,000 new plans taken out. This was an all-time high, driven by increased consumer awareness - Equity Release Council 2023 Annual Review. Equity Release Council, July 2018.
Services
What is Equity Release?
Equity Release is a scheme which enables homeowners aged 55 and over to obtain equity (money) tied up in their homes for use as additional income or to service other financial needs.
The most common type of Equity Release uses a Lifetime Mortgage loan, which is secured against the value of your property.
Depending on your age, the maximum percentage you can borrow is normally up to 55 per cent of the value of your property.
Interest can be “rolled up” so no regular payments are required to be made.
What is a Lifetime Mortgage?
A lifetime mortgage is increasingly a preferred method of borrowing a fixed amount of money in the form of a long-term loan, which is secured against the value of your home.
There is no need for you to move and you continue to own your own home for the duration of the plan, for which, you are responsible for maintaining in good repair.
The loan is paid back from proceeds obtained when your property is eventually sold.
PROTECTION
Critical Illness Cover
Income Protection Insurance
Level Term Assurance
Mortgage Life Assurance
Whole of Life Assurance
BUSINESS PROTECTION
Shareholder Protection
Partnership Protection
Key Person Insurance
Relevant Life Assurance
MORTGAGES
Equity Release Schemes
First Time Buyers
Remortgages
Buy to Let Mortgages
Self Build Mortgages
Flexible Mortgages
Offset Mortgages
ESTATE PLANNING
Will writing service
Probate services
Probate litigation finance options
DID YOU KNOW
More than half of homeowners aged 55 and over didn’t realise that the cash lump sum they would receive from releasing equity in their home is tax free…
-Age Partnership
Lifetime Mortgage Type 1: Interest ‘Roll-Up’ mortgage
The key advantages
• NO regular repayments
• Interest is simply ADDED to the loan
The amount you originally borrowed plus the “rolled-up” interest is only repaid when your home is sold after death or if you have to move permanently into care.
• A NO-negative equity guarantee
While the amount you owe increases because interest is being added or “rolled-up” on to the original loan – it will NOT exceed the value of your property.
The loan you receive can be paid to you as:
• A cash lump sum
• In smaller sums over time – either regularly or when needed,
If you choose a single cash lump sum at the start, the amount you owe can grow quickly.
Lifetime Mortgage Type 2: Interest ONLY mortgage
The key advantages
• Fixed rate of interest is paid on the loan each month – as with a standard fixed mortgage.
• Cash lump sum received – as with a roll-up mortgage.
• Capital repayments may be made – usually up to 10 per cent offered by some providers.
• Only repay amount originally borrowed when your home is sold.
Lifetime Mortgages – what you also need to know
Inheritance – the amount you pass on may be reduced. Your beneficiaries (those to whom you leave your estate) may have to sell your home in order to repay the lifetime mortgage.
Change of circumstances – schemes can be inflexible if your situation at home changes. You may need to seek the provider’s permission if someone else, such as a relative, carer or new partner moves in to live with
you.
Entitlement to benefits – the scheme might affect the assessment of your income and capital as a result of any money you raise through equity release.
Legal fees – as well as Valuation and Arrangement fees might need to be paid.
Downsizing – moving to a smaller property might mean you are prevented from transferring all of the debt.
Lifetime Mortgage Type 3: Flexi Payment Term Lifetime Mortgage (Flexi PTLM)
The key advantages
• A tax-free way to release cash from your home
• Can be used for several reasons, including repaying an existing mortgage, gifting money to your family or preparing your property for the future
• Comes with several protections and guarantees.
• A loan secured against your home Only available to homeowners aged 55–62 at application with a property worth at least £125,000.
Requires a period of mandatory payments until the oldest applicant turns 66, which is subject to an affordability assessment.
Your home may be repossessed if you don’t keep up with mandatory payment
What is a Home Reversion Plan?
A Home Reversion plan offers a different approach to a Lifetime Mortgage. This method allows you to exchange the ownership of your property by selling your home in return for a cash lump sum.
Under this scheme, you sell all of your home to a private company called a reversion company. They will receive all the proceeds of your house when it is sold on the death of the last surviving partner or on the last surviving partner moving permanently into care.
The key advantages
.NO interest to pay – as home reversion plans are not loans.
• Continue to live permanently in your own home for the rest of your life, or until you have to move permanently into care.
• Reduced Inheritance Tax liability your beneficiaries will have to pay after death.
• Receive a higher percentage of your home’s market value the older you are when you start a home reversion scheme. Particularly suited to 70+.
Home Reversion Plans – what you also need to know
Property value – you are likely to receive less than the full market value of your home – typically between 20 per cent and 60 per cent – because the buyer cannot re-sell until you die or move out of the property.
Inheritance – the amount you pass on may be reduced. Your beneficiaries (those to whom you leave your estate) will not have your home to sell
Change of circumstances – schemes can be inflexible if your situation at home changes. You may need to seek the provider’s permission if someone else, such as a relative, carer or new partner moves in to live with you.
Entitlement to benefits – the scheme might affect the assessment of your income and capital as a result of any money you raise through the home reversion plan.
Taking out an Equity Release plan is a significant step!
To help you decide, you will need to have:
• Best possible advice before taking out a plan.
• Best possible options to suit your personal circumstances.
