Equity Release

What is Equity Release?

This Blog post on Equity release will hopefully explain some of the details of equity release and what you should consider.

Equity Release lets you unlock the tax-free cash from your home, without having to move out.

You might be looking for some extra money for home improvement, help out your family, repay a mortgage or a bit of extra income in retirement.

Equity Release is only available if you are over a certain age usually 55.

Releasing equity from your home is a big decision and you need to get the correct financial advice.

How does it work?

Based on your age you will have access to a percentage of the property valuation to take as a tax free cash sum.

Types of equity release schemes

There are two main types of equity release scheme-

  • Lifetime Mortgage
  • Home Reversion scheme


Lifetime Mortgage

Home Reversion

How it works

You have a loan on your home with the interest charged usually added (roll-up) to the balance outstanding

You sell all or part of your home

Do you still own your home?

Yes, but you have to pay back the mortgage.

No, you will be a tenant

Can you stay living in your home?



Do I have to pay anything?

Usually nothing but with some providers and products you can choose to pay the interest

Some home reversion plans charge a peppercorn rent.

How does the provider get their money back?

The mortgage balance outstanding (capital and interest added) is repaid from the sale of the property when you die, or if you move out permanently

When your home is sold after you die or move out permanently

Is it right for you?

We can review your current circumstances and objectives and explain how Equity Release works so that you have all the information so that you can make an informed decision. If we do not think it is the right option for you we will tell you.

Before deciding on an equity release plan, you should consider the alternative options and the impact on any state benefits a release of equity may have.

Equity release is not right for everyone and receiving the correct advice is essential.

Why Portlethen Financial Services

Portlethen Financial Services has been providing mortgage and financial advice since 1996 and were Independent Financial Advisers for the majority of this time but are now Specialist Mortgage Brokers & Financial Advisers utilising their wealth of knowledge and experience to provide new and existing clients with bespoke Mortgage, Equity Release and Insurance advice.

David Butler our Equity Release specialist has been providing holistic financial planning advice for the last 25 years and is a member of the Chartered Insurance Institute, Society of Mortgage Professionals, for Equity Release and Mortgage advice. In addition, David is a Member of the Personal Finance Society, Dip PFS, and holds the Advanced Financial Planning Certificate.

David will have a free initial consultation with you to discuss all the options and ensure equity release is the best financial decision for you.

The Equity Release Process

  • Initial Consultation to introduce our services and discuss Equity release and the alternatives to consider
  • Discovery Meeting – where we will complete a fact find to obtain as much information as possible relating to your current financial circumstances and objectives. In addition to discussing the risks associated with equity release and your feelings towards them.
  • Research – The providers and plans available will then be thoroughly researched to ensure any recommendation will suit your individual objectives and attitude to risk.
  • Presentation of recommendation – a meeting will be arranged to present the recommendations of the most suitable equity release plan and provider. The report produced outline your current position and our recommendations to achieving your goals. Supporting information will also be included, personalised illustration and Product Brochures.
  • Implementation – If you accept our recommendation we will then compete an application form which will be underwritten, a valuation instructed and an offer issued.
  • Independent Legal Advice – A solicitor used to dealing with Equity Release should be engaged who will make sure you fully understand the workings of the plan and the legal implications before you go ahead.
  • Completion – Once the offer has been issued and the legal work completed you will receive the money approximately 8 to 12 weeks from date of the original application.

Ready to talk?

Get in touch if you would like to know more about equity release or book you free initial consultation. 

I hope you found the Equity Release Blog useful and imformative.

Equity Release refers to home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

For Equity Release advice there will be a fee of £495 and we will also be paid commission from the provider.

Your property may be repossessed if you do not keep up repayments on your mortgage


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