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Equity Release

Equity release allows individuals aged 55 and over to release money from the property they live in without having to make any monthly repayments

There are two main forms of equity release in Europe:

A Lifetime mortgage involves taking a type of mortgage which does not require monthly repayments, although with some plans rather than roll up the interest you can opt to make monthly repayments if you wish.

You retain ownership of your home and interest on the loan is rolled up (compounded). The loan and the rolled up interest is repaid by your estate when you either die or move into long term care. If you are part of a couple, the repayment is not made until the last remaining person living in the home either dies or moves into care, meaning that both you and your partner are free to live in your home for the rest of your lives.

A Home Reversion Plan also allows you to access all or part of the value of your property while retaining the right to remain in your property, rent-free, for the rest of your life. With a Home Reversion product the provider will purchase all or part of your house taking into account your age and your health and will provide you with a tax free cash lump sum (or regular payments) and a lifetime lease, guaranteeing you the right to stay in your property rent-free for the rest of your life.

There is no day-to-day interference and no restrictions on treating the house exactly as before; as a private home to live in freely.

News

Mar 20, 2024
Global Equity Release market forecast to hit USD 50 billion by 2033
The European Pensions and Property Asset Release Group (EPPARG) and EY have today published the Global Equity Release Roundtable 2023 survey report, which highlights that the global equity release market could hit USD 50 billion by 2033, more than doubling its current size. The report gathers data from market leaders across 13 countries globally with established or developing equity release markets, and analyses growth potential.
Jan 23, 2024
Claudio Pacella: The Italian market is undoubtedly one of the most interesting in the European context
Claudio Pacella, CEO of 65Plus – Gruppo Mutuionline in Italy and an EPPARG Board Member, explains how the signature of the first funding agreement between Centro Finanziamenti and international investors represents a game-changer for the Italian market, with an estimated market opportunity in excess of €2 billion.
Jan 11, 2024
Thomas Bodereau, Arrago: We foresee a potential equivalent lifetime mortgage market in France to that of the UK
Thomas Bodereau, Co-Founder and CFO of French lifetime mortgage provider Arrago, describes the company’s journey to date and shares his perspective on prospects for growth in the French market, in view of the ageing demographics and high home ownership rate.
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