Lifetime Mortgages
Lifetime Mortgages For many people over the age of 55 years old, the majority (or all) of their mortgage has been paid off. Their home may have increased in value many times over, and is often their greatest asset! With Lifetime Mortgages, it is possible to un-lock or release some of the money / equity tied up in your home, and make that money work for you in your retirement. The money released can be in a lump sum, and / or as a monthly income for life.
To be eligible for most Lifetime Mortgage schemes you should be aged 55-70, have a property that is worth at least £30-40,000, and ideally be a freeholder.
Some of the questions to ask before proceeding to invest in any Lifetime Mortgage scheme are:
· Does the scheme allow you to move house if you need to (portability)?
· What is your life expectancy? And what age are you entering the scheme?
· What are your family expecting to inherit on your death?
Reducing the value of your estate may be beneficial from an inheritance tax point of view. But you must consider those to whom you wish to leave an inheritance, and how much you wish to leave them
· Are you living with a younger partner, relative or friend?
Depending on the terms of the scheme, they will need to find alternative housing in the event of your death.
· What is your eligibility for means-tested benefits?
As you can see from the selection of relevant issues / questions above, it is of great importance to receive advice on whether a Lifetime Mortgage is suitable to you, and on the schemes available from the various lenders, and which will best meet your needs.
You Must Seek Professional Advice before taking out a Lifetime Mortgage.