What Is Lifetime Equity Release

There are many equity release options with lifetime equity release schemes being one option. Lifetime equity release is the most generally known type of equity release scheme available, and works in a easy manner allowing you to borrow money against the worth of your house or property without any monthly payments.

Lifetime mortgages are calculated on the basis of interest and principle and addition if any. Since no monthly payments are made, the interest is compounded against the principal loan amount at the fixed rate of interest. Normally, interest is charged annually, but you should consult your adviser as some loan providers advertise their monthly interest rates, which yields a greater annual rate after compounding monthly. As long as the mortgage loan remains intact, the interest will continue to be charged to the rising principal amount. You may pay the amount after your death or selling the assets.

Lifetime equity release is a reasonably simple and recommended product.

Features of Lifetime equity release

– No monthly repayments.

– Cash released can be taken as a tax free bulk amount.

– Inflation do not trouble you as the interest is fixed.

– You may be able to assure and safeguard a percentage of the property value for your successors.

Key features to consider while applying for a Lifetime equity release

– Draw-down facility.

– Increasing fund reserve

– Equity protection.

– Quicker repayments penalties

– Calculation of interest.

Costs of a Lifetime equity release

When you choose to move on with a mortgage application, your house will be evaluated and valued by the loan provider. Then the exact valuation will be determined. Although some loan provider render free evaluation and no lender arrangement fee, still the cost of the evaluation is up to you.

Valuation Fee:

The amount of the valuation fee will be dependent on the value of your house or property. Considering a rough estimate, with a property value of $ 200,000 you can expect to pay in between $ 400 – $ 600.

Additional costs will depend on the amount of equity you would like to release and type of plan you choose.

Lender Fee:

It includes understanding, completion and application fee and covering administration costs and are normally between $250 – $600

Solicitor’s Fee:

These are slightly lower with firms that specialize in equity release; otherwise it can vary widely among solicitors. A standard charge would be $ 300 – $ 500


The loan provider would prefer an insurance policy. The cost depends on the size and type of property you live in.

Find out more about lifetime equity release and what is equity release at onlineequityrelease.com