Retirement should be about freedom, enjoyment, and making the most of your home’s value. But with rising living costs, many homeowners are exploring ways to release cash from their property.

If you’re considering equity release, you’ve likely come across the terms’ lifetime mortgage‘ and ‘home reversion’. Understanding the differences can help you make a decision that fits your lifestyle and financial goals.

Call us today on 020 8528 2251 or email hello@conranmortgages.co.uk to discuss your options.

“Our experts at Conran Mortgages guide you through equity release with transparency and care. Whether a lifetime mortgage or home reversion, we help you unlock your home’s potential safely and confidently.”

What Is Equity Release?

Equity release allows homeowners aged 55 and over to access the value tied up in their property without having to sell and move out.

Typically, it comes in two forms: Lifetime mortgages and home reversion plans. Each has distinct benefits and considerations, so understanding them is key to choosing the right plan for your later-life financial strategy.

Understanding Lifetime Mortgages

A lifetime mortgage is the most common equity release product. It’s a loan secured against your home, allowing you to access cash while retaining full ownership of your property.

Key Features Of A Lifetime Mortgage

• Receive a lump sum or drawdown facility.
• Interest can be rolled up or paid monthly to reduce the compound effect.
• Flexible options like downsizing protection and inheritance protection.
• Eligibility typically requires you to be aged 55 or older and own a mortgageable property.

At Conran Mortgages, we help clients explore tailored lifetime mortgage options to ensure their home equity is used wisely, while leaving a legacy for their family. Learn more about our later life mortgages services.

Understanding Home Reversion Plans

With a home reversion plan, you sell a percentage (or all) of your home to a reversion provider in exchange for a tax-free lump sum or regular income. You retain the right to live in your home rent-free for the rest of your life.

Key Features Of A Home Reversion

• Immediate access to tax-free cash.
• Retain lifetime residency rights.
• The proportion of your home sold affects the cash received.
• No interest charges, but the property value given up can reduce inheritance.

Home reversion can be suitable for homeowners seeking large lump sums without monthly interest payments, though it may reduce what you leave behind for your heirs.

Lifetime Mortgage Vs Home Reversion: Key Differences

When comparing a lifetime mortgage vs a home reversion, consider the following:

The choice depends on your personal circumstances, lifestyle goals, and plans for your estate.

How To Decide Which Plan Suits You

1. Consider your age and health: Older homeowners or those with health concerns may be eligible for higher cash release with Lifetime Mortgages.
2. Review your inheritance goals: Lifetime mortgages offer inheritance protection, while home reversion plans often reduce the amount that is passed on.
3. Assess your cash needs: If you require a large lump sum upfront, home reversion might be suitable. For flexible access, lifetime mortgages are more adaptable.
4. Seek professional advice: Independent advice ensures you understand all costs, options, and consequences. Our team provides whole-of-market equity release advice tailored to you.

Why Choose Conran Mortgages For Equity Release?

We understand that equity release decisions are deeply personal. With over 30 years of experience as independent mortgage brokers in London and Greenwich, we provide honest, expert advice tailored to your circumstances.

From lifetime mortgages to home reversion plans, we guide you step by step, handling all paperwork and legal considerations to ensure a smooth process.

Conclusion

Choosing between a lifetime mortgage and a home reversion plan requires careful consideration of your financial needs, retirement plans, and inheritance goals. Both products offer valuable ways to access your home’s equity, but your decision should be informed and tailored to your specific needs.

Speak with Conran Mortgages today to find the right equity release solution tailored to your needs.

Contact us on 020 8528 2251 or hello@conranmortgages.co.uk for a no-obligation conversation.

Frequently Asked Questions

1. Can I still move home with a Lifetime Mortgage?

Yes, downsizing protection options allow you to repay the loan and transfer it to a new property without penalty.

2. Is negative equity a risk?

For lifetime mortgages recommended by Conran Mortgages, the equity release council’s no negative equity guarantee ensures your estate won’t owe more than the property’s value.

3. Do I need to inform my family?

While not mandatory, discussing plans ensures transparency and avoids surprises regarding inheritance or estate planning.

4. How much can I release?

The amount depends on your age, property value, and health. Older clients or those with specific health conditions may be eligible for additional cash.

5. Are lifetime mortgages expensive?

Interest rates are competitive, especially with flexible drawdown options. Our advisors calculate the best plan to preserve estate value.

6. Can I move home if I have an equity release plan in place?

Yes, most lifetime mortgages and some home reversion plans allow you to move, but your new property must meet the lender’s criteria.

7. Will equity release affect my state benefits?

Equity release can impact means-tested benefits. It’s essential to receive personalised advice to understand any impact on your entitlements.

8. Can I make early repayments on a lifetime mortgage?

Many lifetime mortgages offer partial capital repayment options, helping reduce interest and preserve inheritance without penalties.