releasing equity

matrix007

Good morning this is my first time of using this forum. Can anyone help me with advice regarding releasing equity from my property. 
I have a house that is fully paid for in cash. The price has gone up over the years and i want to release the  equity. I have been told that i have to be 55yrs old and above to qualify for an equity release. I am 41yrs old, is there a service out there that will allow me to collect my equity?

Regards

concerned home owner

foxy-stoat

Take out a mortgage against your property, if you fit affordability then you shouldn't have any problems.  Or sell the property.

Your probably talking about Equity Release Scheme rather than releasing equity by taking out a mortgage.  Your probably too young for the schemes your thinking about, but you should look at a mortgage.

eddddy

matrix007 said:

Good morning this is my first time of using this forum. Can anyone help me with advice regarding releasing equity from my property. 
I have a house that is fully paid for in cash. The price has gone up over the years and i want to release the  equity. I have been told that i have to be 55yrs old and above to qualify for an equity release. I am 41yrs old, is there a service out there that will allow me to collect my equity?

As above, you just take out a regular mortgage.

In simple terms, you could say that a regular mortgage and an equity release scheme are similar, except that:

• With a mortgage, you typically borrow a chunk of money and gradually repay the loan plus interest - perhaps over 20 years. So the loan gets smaller and smaller, and eventually reaches zero after 20 years.

• With an equity release scheme, you typically borrow a chunk of money, but you don't make any repayments. So the interest compounds, and your loan gets bigger and bigger over the years.  And it normally gets paid off when you die or go into care. 
• (The reason a 41 year old won't be accepted into an equity release scheme like this is because it might be 40 years until you die. The compound interest means that your loan might grow to 5 or 10 times what you originally borrowed by that time.)