What is Equity Release?

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What is Equity Release?

• https//www.cozmomortgages.com/

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• Equity release allows you to make large
  purchases, pay off a mortgage, or donate
  generously to loved ones. 
• It's a financial instrument that unlocks property
  wealth rather than using savings or a personal
  loan.
• In 2022, 93,000 clients used equity release
  solutions to access more than 6.2bn of property
  wealth, up from 76,000 in 2021. 
• It's popular with retirees whose homes have
  appreciated.

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• What are the different types of equity release?

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Lifetime Mortgage

• Lifetime mortgages entail home equity loans. You
  can stay in your home until you die or enter
  long-term care without repaying it. 
• There are two ways to control interest on the
  debt 
• Interest-paying lifetime mortgage - You pay
  interest as you go. Interest won't compound,
  saving you money. 
• An interest-roll-up mortgage may be better if you
  don't pay until your home sells. However, this
  may be far more expensive. 
• Equity release mortgage providers often promise
  no negative equity. This means you'll never owe
  more than your home's sale price. 

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Home reversion

• If you choose a home reversion scheme, youll
  sell all or part of your property while keeping
  the right to continue living in it until you die
  or move into long-term care. 
• You can choose whether youd prefer to be paid a
  lump sum or a regular income. 
• Something to keep in mind is that you wont
  receive full market value for your home, whether
  you sell it all to the lender or just a
  percentage of it. 
• Some home reversion providers will only work with
  those who are aged 60 or above. If youre in your
  50s, we can help you find one wholl work with
  younger homeowners. 

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• You may create your own equity release
  arrangement by selling your home privately and
  living there for life. If you consult a financial
  advisor and lawyer upfront, this could save you a
  lot of money. This requires contracts and
  financial planning. 

Private equity release
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• Do you pay tax on equity release?
• You wont have to pay any income tax on the money
  you receive through equity release. After all,
  its technically a loan rather than a source of
  income. 
• If youre concerned that your estate will be
  subject to Inheritance Tax when you pass away,
  equity release could help you reduce your IHT
  liability. 

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• Do you pay tax on equity release?
• However, if you pass away within 7 years of
  giving away your assets to family or friends,
  these gifts may be taxable. The exact tax rate
  will vary depending on how many years have passed
  between the date the gift was given and your
  death. 
• You should seek financial advice on inheritance
  tax and how it might impact you. If youd like
  help finding the right financial advisor, get in
  touch with Cozmo Mortgages.

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Contact Us

• Mail on info_at_cozmomortgages.com
• Address 803, Silver Tower, Business Bay, Dubai,
  P.O.Box 238065
• Contact Number 97145587195
• Visit https//www.cozmomortgages.com/