Owning your home on a leasehold basis can be restrictive – but does it mean you are prohibited from taking out equity release? Mark Gregory of Equity Release Supermarket has the answer…
The Question
I live in a ground floor flat and pay service charges and I hold the property on a leasehold basis. As I am due to reach retirement in just under a year, I am looking into equity release to free up some money to boost my income.
Is the fact I don’t hold the freehold a problem? Will I need permission from the owner of the freehold?
Mark’s Answer
I am pleased to read that you are planning for your retirement, and I am delighted to confirm that releasing equity from a leasehold ground floor flat is an option to raise capital to support your income in retirement.
However, the number of years outstanding on your lease, the service charge, the ground rent, and any sinking fund can all impact on how much you can borrow.
Furthermore, the amount of capital you can raise for your objectives is based on your age, the value of your home, and please note that any existing mortgages must be repaid before or with the proceeds of the equity release plan that is recommended for you.
Therefore, as I often say at this stage of any enquiry, it is best to take whole of market, independent advice from a friendly, professional equity release expert.
Our experts here at Equity Release Supermarket will be able to advise you on the viability of your home to raise equity for your objectives, but they will also be able to listen to you and consider all later life capital raising options, without any obligation or charge to you for their consultation or advice.
In-fact you will only pay for their advice fee when you are entirely happy and any subsequent recommendation they make completes.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
