Equity Release

Couple outside a house

Age UK Equity Release Advice Service

Talk to an equity release specialist today 0800 023 2814*

Lines are open 9am - 5pm Monday to Friday. Calls may be monitored and recorded for training purposes. Talk to an equity release specialist or book an appointment. Please quote reference AgeER3

You've worked hard for your home. Now make it work hard for you with the Age UK Equity Release Advice Service, provided by Just Retirement Solutions Limited.

Equity release has made a real difference to our lives and has allowed us to fit a new kitchen, landscape our garden and buy a new bed. We were very impressed with the service and how knowledgeable and friendly our advisor was.
Mr and Mrs T | Wales

Equity release allows you to free up cash from the value of your home without the stress of having to sell up and move.

There are two main types of equity release plan available:

  • Lifetime mortgages
  • Home reversion plans

Both of these plans allow you to remain in your own home and release cash for making the most of your retirement. Maybe take the holiday of a lifetime, buy a new car, help out your family or even make home improvements.

With equity release you:

  • have the flexibility to receive a tax-free cash lump sum
  • will not have to move home
  • have the option to guarantee an inheritance for your family
  • have the right to move to another suitable property, subject to the new property being acceptable to your product provider, as continuing security for your equity release loan

Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration. Equity release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate.

No obligation expert advice

Taking out equity release is a major decision, so it's important that you seek financial advice. That's why we are working with Just Retirement Solutions Limited, one of the UK's largest equity release specialists. With the Age UK Equity Release Advice Service you will get advice and information from a dedicated equity release specialist. You will only be charged if you decide to take out a plan. Advice given by Just Retirement Solutions Limited carries no obligation.

The service offers:

  • Fully advised face to face or telephone appointments
  • Access to a range of carefully selected providers and products
  • Advice on the different types of equity release available
  • A state benefits check undertaken to see if there are alternatives to releasing equity or additional benefits which you could be claiming
  • Access to equity release plans with exclusive features

If you decide to take out a plan, there will be a fee of £675 for advice and arranging an equity release plan Just Retirement Solutions Limited recommends. You will only be charged if you decide to take out a plan. Advice given by Just Retirement Solutions Limited carries no obligation. There are other fees associated with equity release that your advisor will talk through with you.

The plans with exclusive features for Age UK customers are lifetime mortgages. To understand the features and risks, ask for a personalised illustration. Equity release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate.

Why choose us

There are many reasons why people in the UK consider equity release schemes. Whatever the reason, it is essential that you seek professional advice.

With the Age UK Equity Release Advice Service, provided by Just Retirement Solutions Limited, you will speak to a trained specialist on a dedicated support line.They will give you all the information you need and book an appointment for you to talk to an adviser either over the phone or in your home.

These advisers are trained to look for the best option for you. They will take the time to fully understand your needs. Just Retirement Solutions Limited takes an open approach to these appointments and encourage family members to attend, if it's right for you. Plus, you have peace of mind that if for any reason equity release isn’t for you, your adviser will tell you clearly stating the reasons why and identifying other options.

When you speak to an adviser they will:

  • Ensure you are taking advantage of all available state benefits
  • Provide details of the equity release plans available
  • Explain the different types of equity release plans
  • Look at alternative options (including downsizing and raising cash through other means)

If you then decide to proceed with your application, you will get all the help and support you need. When they can, Just Retirement Solutions Limited will complete the forms with you and at all stages will work within specific timeframes. This means you know exactly what to expect at all times.

If you decide to take out a plan, there will be a fee of £675 for advice and arranging an equity release plan Just Retirement Solutions Limited recommends. You will only be charged if you decide to take out a plan. Advice given by Just Retirement Solutions Limited carries no obligation. There are other fees associated with equity release that your advisor will talk through with you. 

Exclusive plans for Age UK customers

There are now fewer equity release providers than ever before. This has meant a much lower level of choice when it comes to selecting a plan. So in conjunction with Just Retirement Limited and Just Retirement Solutions Limited, we've come up with equity release plans designed with you in mind.

The equity release plans with exclusive features for Age UK customers, provided by Just Retirement Limited are lifetime mortgages. They allow you to release tax-free cash either as a lump sum or in smaller amounts as and when you need it. This means you only take the money you really need. The plans have exclusive features for Age UK customers including a minimum ad hoc drawdown of £500 and no valuation fee charges.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Equity release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate.

FAQs

Here are the answers to some of the most frequently asked questions about The Age UK Equity Release Advice Service. If you have any further questions, please call 0800 023 2814*

Q. What can equity released be used for?
Q. Are there any limits on what I can release?
Q. What is a lifetime mortgage?
Q. What is a home reversion plan?
Q. What happens if I want to move house?
Q. What happens to my partner if I die?
Q. Can I get into negative equity?
Q. What happens if I want to end the plan early?
Q. What fees will I typically need to pay?
Q. What about the risk involved with equity release?
Q. How long will it take to get cash?

Q. What can equity released be used for?
A. You can spend the money you release from your home to make the most of your retirement.

Q. Are there any limits on what I can release?
A. Yes. Factors such as your age and the value of your home will also determine the amount of money you can release.

Q. What is a lifetime mortgage?
A. A lifetime mortgage is a type of loan, which is secured against your home. It allows you to release a cash sum (or, with some plans, take smaller amounts as and when you need them) from the value of your property. You continue to own your own home and benefit from any increase in its value.

With most lifetime mortgages, there are usually no regular payments to make and nothing has to be paid back until the end of the plan. This usually happens when you or the last plan holder living in the property dies or moves into long-term care. There may be an early repayment charge if you decided to repay your lifetime mortgage early. One of Just Retirement's advisors can explain this in detail.This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

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Q. What is a home reversion plan?
A. Home reversion plans involve selling part or your entire home to a home reversion provider in return for a cash lump sum. While all or part of your home will belong to someone else, you can remain living there for the rest of your life rent free.  A home reversion plan is not a loan and so there is no interest to pay either. However, if your property increases in value, you will only benefit from the increase in value of the proportion you still hold. When you die or move into long-term care, the property will be sold and the reversion company receives its share of the proceeds.

You should be aware that when you take out a plan you will normally receive less than the current market value of your home - this is because the reversion company who buys your home cannot sell it until you die or move into long-term care and so need to protect themselves against any potential loss in value.

This is a home reversion plan. To understand the features and risks, ask for a personalised illustration.

Q. What happens if I want to move house?
A. As long as the new home you wish to move to meets the acceptance criteria of your equity release provider then you should be free to move. In some circumstances, for example down-sizing to a smaller property, a part repayment of the equity released may be required.

Q. What happens to my partner if I die?
A. If the plan is in both your names then it will continue until the death of the last surviving person. However, if your property and equity release plan are taken out in your name only, the property would have to be sold and your partner would have to find somewhere else to live (unless, for example, they were able to repay the equity release plan in full.)

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Q. Can I get into negative equity?
A. If the amount required to repay your mortgage ends up being more than the eventual value of your property upon sale, most equity release providers cover the loss and do not have a claim upon any other assets in your estate. This is called a ‘no negative equity guarantee’ and is offered by all Equity Release Council members. Such guarantees are subject to you meeting your plan conditions.

Q. What happens if I want to end the plan early?
A. Equity release plans are long term commitments designed to be paid back only when you die or move permanently into long-term care. If the plan is repaid prematurely there could be a substantial early repayment charge. Different equity release providers calculate these charges differently. The amount concerned will be detailed in the equity release provider’s plan documentation.

Q. What fees will I typically need to pay?
A. Arrangement fee; Valuation fee; Legal fee; Advice fee. Some of these fees can be added to the money being released.

Q. What about the risk involved with equity release?
A. The risks will depend upon the type of equity release scheme you choose. Think carefully before securing other debts against your home.

Q. How long will it take to get cash?
A. Each is different but a typical case should take somewhere between 12 to 16 weeks. The breakdown of this is as follows:

Weeks 0 - 2 Get in touch via phone or email.

Weeks 2 - 4 Meet an advisor to discuss your needs. A detailed analysis of your circumstances is carried out including a State Benefits Review. A second meeting will highlight all your options, costs and the next steps.

Weeks 4 -16 Your application is processed with the relevant provider.

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Glossary

Here is a helpful list to help you understand the many terms you will read about when you consider equity release.

A

Accrued interest

The amount of interest that has accumulated on a plan over time.

Arrangement fee

A fee that you pay the lender, usually to reserve the funds for a mortgage or lifetime mortgage.

B

Benchmark Interest Rate

This is an interest rate used by some providers in calculating an early repayment charge.

Building Insurance

Insurance that covers physical damage to a building as opposed to its contents. Equity release plan holders are required to have adequate buildings insurance to the value of their property.

Benefits

You may be eligible to receive financial support from the State, such as Council Tax Benefit, if you are on a low income or have certain costs to meet because of your personal situation.

C

Cash Advance

An amount of money advanced to a plan holder under the equity release plan

Cash Facility

The amount of money available from a provider, from which the initial cash advance is taken.

D

Deeds

Legal papers that establish who owns a property and names anyone who has an interest in its value.

Drawdown

Taking a cash advance from your pre-agreed cash facility. This is done after the initial cash advance is paid. Only when drawdown is taken does the interest start being charged on the drawdown amount.

Drawdown Lifetime mortgage

A lifetime mortgage that allows a customer to draw down funds in stages as and when required. This means you only pay interest on the amount borrowed at any one time.

E

Early Repayment Charge

A fee applied by some mortgage companies should you choose to repay your mortgage early. This charge is only applicable in certain instances and will vary from provider to provider.

Equity

Equity is the value of your home minus any outstanding mortgage or other debts secured against it.

Equity release

An equity release plan allows you to release tax-free cash from your home in the form of a cash lump sum or regular drawdowns, usually with no monthly repayments to make.

Equity Release Council

An industry trade body that helps to ensure products are safe and accessible for consumers.

Estate

Includes your home, possessions and any savings or investments.

F

Financial Adviser

A Financial Adviser provides financial advice based on an individual customer's needs, offering the most suitable and competitive product from the range of providers available to them.

Financial Ombudsman Service

An independent and impartial complaints scheme which aims to settle disputes about financial products or services.

Fixed rate

All of the plans that Just Retirement Solutions Limited recommends have fixed rates, which means that the interest rates on the plan will never change throughout its term.

FCA

Financial Conduct Authority. The UK's financial regulator set up by the Government to regulate financial services and protect consumer rights.

H

Home Reversion Plan

A form of equity release, where the customer sells all or part of their home in return for a regular income or cash lump sum or both, and continues to live in their home for as long as they wish.

I

Initital Cash Advance

The amount advanced to plan holders at the start of an equity release plan.

Interest

The charge made by lenders on money you borrow fom them. Interest can be variable (goes up or down) or be fixed

K

Key Facts Document

Important information set out in a standard way, so you can compare services, products and costs.

Key Facts Illustration (KFI)

Important information about the financial product you are buying, describing key features and risks.

L

Lifetime Mortgage

A loan secured on your home. Normally no repayments are made on the loan until the death of the last surviving policy holder or their move into long-term care.

Loan to Value Factor

The maximum amount that can be borrowed against a property based on age and sex of the youngest applicant and the property value.

Legal fees

The fee you pay to a solicitor for their services.

N

No negative equity guarantee

A guarantee to ensure you will never owe more than the value of your home

O

Open Market Value

The value of the property should it be sold on the open market

P

Portability

If you wish to move home you may be able to transfer your lifetime mortgage to a new property if the new property is acceptable to the lender. If you transfer your lifetime mortgage to a new property, the lender may reduce your Cash Facility and you may need to repay some of the Amount Owed.

V

Valuation Fee

A fee paid to a lender to cover the inspection of your property.

Call to speak to a trained equity release specialist

0800 023 2814*

Lines are open 9am - 5pm Monday to Friday. Calls may be monitored and recorded for training purposes. Please quote reference AgeER3

Request a brochure

Find out more about the Age UK Equity Release Service

Visit your local AgeUK/Concern Office**

**Not all Age UKs/Concerns offer all products. Please check (by calling your local office) before arranging a visit.

Advice on equity release is provided by Just Retirement Solutions Limited. The exclusive products are provided by Just Retirement Limited.

* If you call the 0800 number you will be dealing with Just Retirement Solutions Limited, which provides the Age UK Equity Release Advice Service. Calls to 0800 numbers are free from a BT landline. Call charges from other companies or mobiles may vary and you may want to check this with your service provider. Calls may be monitored or recorded for training purposes.

The Age UK Equity Release Advice Service, provided by Just Retirement Solutions only advises on equity release plans from providers who are signed up to the Equity Release Council’s Code of Conduct. The Equity Release Council is an industry trade body that helps to ensure products are safe and accessible for consumers. Their Code of Conduct puts in place a number of safeguards and guarantees for customers.

 The Code of Conduct states that:

• Customers have the right to remain in their property for life provided the property remains their main residence.

• Customers will be provided with fair, simple and complete presentations of their plans. This means that the benefits and limitations of the product together with any obligations on the part of the customer are clearly set out in the literature. It should include all costs that the customer has to bear in setting up the plan as well as the tax implications, their position on moving house and the effects of changes in house values on their loan.

• The customer’s legal work will always be performed by the solicitor of his or her choice. In all cases, prior to the completion of the plan the solicitor will be provided with full details of the benefits the client will receive. The solicitor will be required to sign a certificate to the effect that the plan has been explained to the client fully and that they understand the risks and benefits of the plan.

• Customers have the right to move their plan to another suitable property without any financial penalty.

• The Equity Release Council certificate will clearly state the main cost to the householder’s assets and estate e.g. how the loan amount will change, or whether part or all of the property is being sold.

• All Equity Release Council plans carry a ‘no negative equity’ guarantee i.e. you will never owe more than the value of your home.

 Age UK Enterprises Limited receives commission from Just Retirement Solutions Limited of up to 0.75% of the amount advanced under each equity release plan sold, plus a contribution towards marketing support. Any net profits raised by Age UK Enterprises Limited from commission are donated to Age UK the Charity.

The Age UK Equity Release Advice Service is provided by Just Retirement Solutions Limited. The product with exclusive features is provided by Just Retirement Limited. Both are registered to the office address, Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU. Just Retirement Solutions Limited is registered in England no. 05125701. Just Retirement Limited is registered in England no. 05017193. Just Retirement Solutions Limited is authorised and regulated by the Financial Conduct Authority. Just Retirement Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Age UK Enterprises Limited is the commercial arm of Age UK (charity no.1128267) and donates its net profits to that charity. Age UK Enterprises Limited is registered in England and Wales no.3156159. Registered address: Tavis House 1-6 Tavistock Square, London WC1H 9NA.

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