News

Oct 10

Drawdown Equity Release: A Monthly Income and Many More Benefits Besides…

“Thousands of retired homeowners are realising the benefits of an equity release plan that releases money gradually without having to take a large lump sum”, says Geoff Charles, Managing Director of Bower Retirement Services.

Equity release offers many benefits to retired homeowners facing financial difficulties but some people are put off by the thought of having to take a large cash sum that may not really be needed or could affect their means tested benefits entitlement. But thankfully, help is at hand in the form of a Drawdown Equity Release Plan.

Drawdown equity release plans are advantageous because by taking a lower initial lump sum or no lump sum, they can keep homeowners within the limits for means tested benefits. What’s more, interest is only paid on the money taken, potentially a greater inheritance can be left compared with alternative plans, and full ownership of the home is retained.

Equity release specialist Geoff Charles explains: “A drawdown facility allows the release of a lower initial cash lump sum – as low as £10,000 – from a property and then continues to provide a cash reserve allowing smaller sums to be taken, as low as £2,000 a time, if and when needed. It can also be set up as a monthly income to pay for ongoing care costs meaning homeowners can stay in their homes and afford better quality care.”

A Drawdown Lifetime Mortgage offers a variety of benefits including: 

  • Allows a lesser depleted inheritance to be left; interest only paid on drawdown
  • Reduces the estate value for IHT purposes (as with any Equity Release plan)
  • Allows a guaranteed inheritance to be left, depending on the plan
  • Can leave any benefits intact by keeping the client within the limits

Bower Retirement Services are whole of market specialist equity release advisers and only recommend Safe Home Income Plans (SHIP) endorsed plans. Geoff Charles says that it is imperative to take independent financial advice when considering any type of Equity Release plan to ensure it is the right course of action.

Bower Retirement Services is an FSA regulated independent financial advice company that offers specialist advice on equity release throughout the south of England. For more information e-mail info@brsequity.co.uk or call 0800 4118668. Bower Retirement Services offers a free, no obligation initial consultation to homeowners considering Equity Release.