Equity Release

Home Equity Release Designed For You

We provide a highly focused service for you when you come to us for advice about home equity release. We need to know exactly what you want for your future. That’s why we listen very, very carefully, when you tell us why you think equity release is the best route to achieve it. Then we go to work to get you the best result:

  • You tell us all about your available income, assets and investments apart from the value of your house.
  • Then you tell us where you are spending your money at the moment.
  • How much you will need to achieve your desired future is what we’ll work out for you.
  • Then we find out the maximum home equity release you can get from your house at the best market rate.
    We help you tailor your future to the money available.

We offer you our solutions only when we fully understand what you want to achieve – we call this “Financial Life Planning”. Find out more about what to expect from MaxLyte Financial.

Peter Maxwell-Lyte is a member of the Equity Release Council and has agreed to abide by the guiding principles of this organisation.

Pater Maxwell-Lyte - Maxlyte Finance Ltd.
Member Of The Equity Release Council

Types of Equity Release

  • Lifetime Mortgages and Home Reversion Plans are the two main types of Equity Release. To understand the features and risks, contact us for a personalised  illustration.
  • An Equity Release plan will reduce the value of your estate and as a result there may be no value left to pass on. Home Equity Release will not be suitable for everyone and may affect your entitlement to state benefits.
  • Equity Release is a complex area, MaxLyte Financial can give you advice on these schemes.

Releasing equity from your home may deliver the additional income you need to help you across your retirement years. With the luxury of time, it’s likely you’ll be able to spend more of it around your home and garden, and with the family too. It’ll also enable you to devote more energy to existing interests and hobbies, as well as possibly picking up one or two new ones. And don’t forget the holidays you always meant to go on, but couldn’t due to work commitments.

Historically, your retirement years would have been largely funded by your pension (both personal and state), other applicable state benefits, along with any investments or savings you may have. However, the impact of the population living longer, poor returns on annuities and savings rates in recent years, the general economic climate, and the increased pressure on state funding, has meant many now have to look elsewhere to help bridge the gap.

Equity Release Calculation

Unlike other equity release specialists, we provide personalised home equity release calculations based upon your own circumstances, rather than a generalised estimate. For a detailed Equity Release Calculation, please click on the button and you will be taken to our Equity Release tool where we can give you your calculation.

(Please note that it is not mandatory to fill out all fields in the form).

Get Your Equity Release Calculation

Home Help

At the same time, we’ve seen a massive growth in the value of the homes we live in. For example, 30 years ago the average house price was around £28,000, which equated to under 3.5 times average earnings. Today, the average house price is over £189,000 and almost six times the earnings figure!  It is no wonder then, that an increasing  number of homeowners feel that they are ‘cash poor but equity rich’ and look to release some of the value in their home. Many would simply decide to downsize, and raise the necessary funds this way. However, an alternative exists – Equity Release – which will enable you to remain in your home if you meet certain criteria, and are aged over 55.
Equity Release Help

Staying Put

In the latest annual review of the attitudes of over-50s to retirement, it gives an insight into why a sizeable number may want to stay put. The over-50s have spent an average of £30,000 creating their perfect home and almost two out of five (38%) said that they want to stay there for the rest of their lives. This figure rises to nearly one in two, when solely asking the retirees. In fact, more than half of the working homeowners aged over-50 now plan to use the equity in their home to help fund their retirement years – compared to just 28% in the same survey in 2012.

The Equity Release Options

There are two main types of home equity release plans:–

  1. You can either borrow money, which is secured against your home (Lifetime Mortgages);
  2. Or sell part, or all of your home (Home Reversion schemes).

The former accounts for the vast majority of all plans taken out. The average amount raised is almost £62,000 – and with a lifetime mortgage the majority are not taking all the money at once, but drawing it down when it is needed (within an agreed timeframe) – to help avoid paying interest on money that’s not required at that particular stage. The maximum you can borrow depends on the age of the youngest planholder and the value of your property. Broadly, this ranges from 20% of the value of your property if you are 60, up to around 50% if you are 90 or over. The reason for this is that providers, who are members of the Equity Release Council (equating to most of the marketplace), allow the final planholder to remain in the home until they die, or go into long-term care, irrespective of when the loan was taken out, or what is owed. It’s vital that you take professional advice.

Equity Release can sometimes be viewed as a product of last resort, but many also turn to it for POSITIVE reasons

Equity Release Safeguards

As a member of the Equity Release Council, we have a commitment to observe a stringent Code of Conduct. These safeguards have recently been further reinforced with additional rules and guidance. There is comfort for the potential borrower, such as:

  • You won’t lose your home. Irrespective of whatever is owed on the loan (even if it exceeds the value of the property), the planholder(s) will be allowed to remain in the property for life, or until they move into long-term care, provided the property remains their main residence. Additionally, this means that there is a ‘no negative equity’ guarantee – resulting in no subsequent debt for the planholder’s family.
  • The right to move to another suitable property without any financial penalty. Although they may have to repay part of the Lifetime Mortgage loan, if moving to a cheaper property, the opportunity to move remains. An additional factor to consider is if both you and your partner are planholders. Take the issue of care, for example, where your equity release scheme will usually carry on unchanged if care is provided in your own home, or if just one of you moves into a care home. If you both move permanently into a care home, the scheme will usually end. And on the death of the first planholder, the arrangements will continue, if the other planholder remains in the home. So, as you’ll see, much has been done to ensure that if you do opt for equity release, there are plenty of safeguards in place, in addition to both Lifetime Mortgages and Home Reversion plans being fully regulated by the Financial Conduct Authority.