There are generally two different types of Equity Release schemes (not to be confused with Additional Loans / Further Advances) available in the UK and these are designed for retired and elderly persons to be able to access the equity tied up in their property when perhaps they do not have adequate income to arrange a traditional mortgage. The first type is where older clients are offered a life-time mortgage on their property and the interest payments are actually rolled up each month and added to the outstanding balance with the increasing debt being finally settled when the property is sold. The other type is where a company will arrange for a part or all of your home to be purchased by a private investor in return for a lifetime lease and a lump sum of money which is usually substantially less than the current market value of the proportion sold.
Neither of these schemes are ideal and currently there are no companies offering Equity Release products on the Isle of Man at this present time. This is mainly due to differences in our tax regime and property ownership rules in comparison with the UK. There were two companies that were offering these schemes up until recently but both have pulled out of the Island.
There are other processes by which you can release equity from your property if you do not have sufficient income to qualify for a standard mortgage and we would be happy to advise you about these. They include Taking a mortgage into retirement, Further Advances or you could choose to down-size your property. For impartial advice without obligation please call Paul, Mike or Dominika on 01624 612611 or e-mail us at [email protected].
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