Lump Sum

Lump Sum Equity Release Plans

You may have heard about ‘lump sum’ equity release plans and need a little more information to decide whether such a plan could be the right one for you.

On this page, we’ll give you a full explanation of how a lump sum plan would work, answer some common questions and give you some pointers around the next steps to take if you’d like to talk to someone in a little more detail.

What is a Lump Sum Plan?

When people think about equity release, a lump sum plan is often the first thing they imagine. Lump sum plans are relatively uncomplicated and offered by the majority of equity release or lifetime mortgage lenders.

A lump sum plan works by first choosing the amount of equity you would like to release from your property. Commonly, this is a large percentage of the equity, freeing up a larger single amount of money now – but limiting the amount that could be accessed in the future.

This amount of money is the provided by the lender and secured as loan against your property, usually with a fixed rate of interest applied.

As a ‘lifetime mortgage’ product, those taking advantage of a lump sum plan can live in their home for the rest of their lives – and the mortgage is repaid solely from the proceeds of the house sale when the applicant or applicants pass away. What’s more, there’s no danger of debt being passed on to your family or loved ones as part of your estate – any shortfall is handled by the lender.

Benefits of a Lump Sum Plan

For many, the sheer simplicity of a lump sum plan is attractive – and it’s attractive for lenders too, as no provision has to be put into place for the on-going administration of the plan at their end.

This simplicity, particularly for lenders, often leads to lower interest rates than you might see with other lifetime mortgage products, helping to maximise the amount that can be borrowed.

As the name also suggests, a lump sum plan is ideal for someone who’s financial goals would benefit from a large injection of tax-free cash. Of course, almost everybody’s goals are different, so talking to one of our advisors about exactly what you’re looking to do can be helpful – with expert knowledge of all the plans we can help you to access, we can confirm if a plan’s exactly right for you.

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Who Would a Lump Sum Plan suit?

As we’ve mentioned, a lump sum plan could be perfect for someone who’s looking to free up some money from their property – but it’s not just applicants who can benefit with a lump sum scheme.

In some instances, a lump sum plan is helpful for people who are supporting parents with their financial decisions. Where other products could allow easy draw down of further funds, any additional funds taken on top of a lump sum plan require a further application – putting a safeguard in place if you’d like to ensure finances are handled in the most responsible way.

Am I eligible for a Lump Sum Plan?

Eligibility for lump sum plans depends somewhat on your circumstances and your property – but if you’re older than 55 and your property is worth more than £75,000 then we’ll do our utmost to find you the perfect plan.

You might want to think about how much money you’d like to borrow. Generally, the older the youngest applicant is then greater amount of money can be released from the property. You could approach the application with a figure in mind – or alternatively, you could talk to one of our team and see how much you might be able to release based on lending calculations.

Of course, the amount borrowed may mean that a further amount can be released in the future. As with all applications for a lump sum lifetime mortgage product, a calculation would need to be done to make sure extra funds are available, considering money already owed and the most up to date value of the property.

Would you like to hear a little more?

If you think a lump sum equity release plan might be right for you or someone you know, the next step would be getting in touch.

When you talk to one of the team here at BRS Equity Release you won’t be talking with a salesperson whose job it is to push you toward equity release or any plan in particular. Instead, you’ll be talking to a friendly and knowledgeable member of our customer service team – someone’s whose job it is to answer all your questions and help you find the perfect equity release solution for you – with no pressure or obligation.

You can also be 100% confident knowing that we only recommend products that meet with the strict guidelines of the Equity Release Council.

You can get in touch with us by calling 0333 360 1958 – we’re always happy to have an informal chat about your exact needs.


Why You should always choose a product from a lender approved by the Equity Release Council

Guarantee 1

equity release council logo approved You have the Right to Remain in your Home for as long as you choose

Guarantee 2

equity release council logo approved You will NEVER owe more than the value of your home due to the "no negative equity" guarantee.

Guarantee 3

equity release council logo approved You have the freedom to move to another property without financial penalty (subject to provider criteria)

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