At Richardson tribe we use equity release to help our clients in a few different ways:
1. The most common way is as the name suggests to simply allow our clients to release some of the value they have built up over their lifetimes in their own property without having to sell or downsize. We meet many clients who sometimes struggle to afford life in their current homes but they don’t want to move out so Richardson Tribe are able to work with some of the leading providers to help these clients find the right deal for them.
2. Richardson Tribe also use Equity Release as a tax planning tool. One of the hardest things to do in inheritance tax planning is to remove the value of the family home from the tax calculations. Sometimes for those with a very high value home releasing equity so that the value of the property can be released to some degree enables our clients to then invest the monies raised in tax efficient vehicle’s such as investments that qualify for business relief, or to make gifts of the ash away to family members now triggering the seven year rule, for some families this allow them to pass down inheritance’s early at a time when it is most needed often when there are young families to help, whilst ensuring our clients can still live in their own homes securely for the rest of their lives and gain a tax saving.
In todays Modern mortgage market Equity release products are now offered by the main stream lenders at incredibly competitive rates, it is no longer the lender of last resort, and we have been able to make some great estate plans by using these facilities for the right clients.