Our Equity Release expert, Donna Buffham has been featured in an article by Surrey Life, talking about the opportunities and pitfalls of using equity release to free locked-in capital.
In addition to talking about how over the past few years, with the housing boom, equity release has become an increasingly popular financial planning tool, Donna was also able to give readers some examples of equity release in practice:
CASE STUDY 1
At John Lamb we recently released £3 million from a property worth £12 million on a fixed interest rate of 3.8%. The client gifted the full amount to children and grandchildren, and purchased a gift intervivos insurance policy to cover the IHT liability over the next seven years.
CASE STUDY 2
We released £300k from a house worth £2.2 million on a fixed rate of 3.6% for clients who required the money to cover their day-to-day costs. The arrangement included a reserve facility for a further £300,000, which the clients can draw down at any time, although the interest rate is not fixed for these reserve funds.
It’s worth remembering, if you are considering equity release as an option,
that at John Lamb we specialise in properties with a value of between £300,000 and £15 million and pride ourselves on being the right people to talk to about all aspects and implications of equity release. As highly qualified independent financial advisers, we have the freedom to explore the entire market, have excellent knowledge of all the financial products available and work with lenders to find the most appropriate solutions for our client.
At John Lamb our specialist equity release team works closely, on a one-to-one basis, with clients considering equity release as an option. We guide them through the wide range of lenders and varying interest rates to find the arrangement that best suits their particular circumstances.
Our clients are using equity release to make up shortfalls in their own income, pay off existing mortgages, fund home improvements or meet the costs of care. Others use the money to help with family spending – such as school fees for grandchildren or the deposit for a first flat.
A FREE copy of John Lamb’s Equity Release Guide can be downloaded here.