Equity Release & The Alternatives

Unlocking Equity From Your Home

You’ve worked hard, now you want to play hard and enjoy your life.
Releasing equity from your home is growing in popularity but there are
different ways to achieve this.

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Equity Release

Helps you unlock cash from your home

Fully regulated by the Financial Conduct Authority (FCA) and Equity Release Council (ERC)

You can remain in your own home

Must be aged at least 55 years (65 years old for some products)

It can turn out to be a very expensive way to release equity from your
home, particularly if interest is compounded.

It can reduce the amount you pass on to beneficiaries when you die

May restrict your moving house in the future

There are fees payable

There could be early repayment charges

Entitlement to means-tested benefits may be affected

It may also restrict the future amount available from your property should you need to fund long-term care.

Typically releases less capital than with Platinum Skies shared ownership

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Typically Unlocks

67K*

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Downsizing

You could release more money than with an equity release product

You own your own home

You pick the property and location that suits you and your future needs

You are responsible for the sale of your home and the purchase of the new property

You are responsible for the maintenance, care and any modifications needed

Typically releases less capital than with Platinum Skies shared ownership

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Typically Unlocks

80K**

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Platinum Skies

We are the only retirement living provider in the UK to integrate age-friendly housing with finance solutions and lifestyle support services

Helps you unlock cash from your home to supplement your income

Must be aged at least 55 years

Move into your new home in as little as six weeks

Worry-free sale of your home

Reduces the cost of downsizing

No maintenance worries – we expect the value of the properties to increase over time, so we keep the buildings and services in tip-top condition

Shared ownership is not the same as equity release – and as we own a share in the property, our interests are the same as yours.

Fewer restrictions than traditional equity release and no hidden costs

The rent you pay on the portion of the property you don’t own is regulated by the government and won‘t erode the value of the property

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Typically Unlocks

150K***

Source: *Independent Online, Based on owners aged 65 & over.**Bowers Retirement ***Typical Platinum Skies Customers March-Sept 2019

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Equity Release

What is equity release?

Equity release is the term used to describe a range of mortgage products that allow you to release money tied up in your home. Set up properly they allow you to access cash to spend as you wish.

The key equity release products

Lifetime mortgages

Currently the most popular equity release product. You can continue to own your own home while borrowing money against it. The amount you can borrow depends on your age, health and the value of your home. There is interest to pay on the loan. You must be aged at least 55 years old.

Home reversion

You release capital by selling all or a part-share to a provider who grants a lifetime tenancy that allows you to remain in your home. You must be at least 65 years old

Other options (generally based on a lifetime mortgage) are…

Drawdown plans

These generally work in the same way as a lifetime mortgage but with added flexibility. After an initial release of cash you can then choose to drawdown further amounts in stages, as and when needed. The interest is only added to each amount as it’s released so it adds up at a slower rate than if the full amount were released at the outset.

Flexible repayment plans

Again linked to a lifetime mortgage, with this product it’s possible to choose to make payments or repayments as and when you like, subject to lender criteria. By paying off some of the interest through the term of the plan the amount owed will be less than if no payments were made.

Enhanced equity release plans

Qualifying health conditions (such as diabetes, heart problems or high blood pressure), or certain lifestyle choices (such as smoking), could mean you are able to release even more cash.

Protected plans

Based on a lifetime mortgage plan, this product helps you guarantee an inheritance for your family. An agreed percentage of the property’s future value can be protected and kept for beneficiaries.

Are equity release plans risky?

 

In the past equity release products have been viewed with suspicion – many people have fallen foul of poor advice which has left them, or their dependants, with large amounts of interest to pay.

However, recently more people have been looking to release equity from their homes, for a variety of reasons. This could be to cover a shortfall in retirement income, repay an interest-only mortgage due to mature without adequate provision for repayment, or help offspring get on the property ladder.

Their increasing popularity has meant that regulations have become tighter for these products and equity release advice and lending is now fully regulated by the Financial Conduct Authority (FCA). Further safeguards are provided by the Equity Release Council (ERC), one of these is the ‘no negative equity’ guarantee, provided the property is sold for the best price reasonably obtainable.

Despite its popularity, equity release still comes with a risk warning – and it’s imperative to seek appropriate, qualified advice. This route isn’t for everyone.

Among many drawbacks, it’s likely to reduce the amount you pass on to beneficiaries when you die, may restrict your moving house in the future, there are fees payable, and there could be early repayment charges.

Additionally, entitlement to means-tested benefits may be affected, and it may also restrict the future amount available from your property should you need to fund long-term care.

Download our latest podcast where Mark Edwards talks about equity release vs Platinum Skies

Equity release is a popular option to help you enjoy your retirement. However, Platinum Skies could give you long term-value – straight away.

So what are the alternatives if you want to unlock money currently tied up in your home?

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Downsizing

 

This does exactly what it says on the tin.

You sell your family home and move to a smaller property. So far, so simple – but selling your old home and buying a new one is quite a process.

Selling your old home can be emotional, particularly if your property has been a family home for many years. And then there’s the issue of finding a suitable property and location to move to – bearing in mind that you’ll need to think about the future and any issues related to ageing, such as your health and mobility.

You’ll end up with a property you own, which is great, but you’ll still be responsible for maintaining it, and should you need to consider moving to a care home there’ll be further upheaval.

Downsizing can typically net you more than equity release. With Platinum Skies you can release even more equity and live life to the full in a purpose built, beautiful home that you part-own.

Find out more about Platinum Skies

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Welcome to Platinum Skies

 

A new and unique route to unlocking more than just money

We offer a unique route to releasing capital from your home while offering a smooth transition to an affordable retirement living solution.

Watch our short explainer video about Platinum Skies and how it works.

So, what’s the difference?

Platinum Skies is a government-backed concept in shared home ownership that gives you the option to buy a beautiful property at a fraction of the market value.

With Platinum Skies it’s more about releasing equity than equity release. We believe there is a better way and Platinum Skies can provide an alternative solution to equity release.

You don’t have to choose between buying another property or renting (from a traditional retirement living complex) – a bit of both might be of greater benefit to you.

Instead of buying your new home outright, you pay just half of its full market value. As with other help-to-buy opportunities, you have the security of knowing that you are entering into a governmentbacked shared ownership scheme that gives you the option to buy a beautiful property at a fraction of the market value.

As a registered provider of a shared ownership scheme this means all our rental charges and fees are regulated by Homes England. We are proud of the solid relationship we have built with Homes England; it is integral to what we do and underpins our mission to make retirement living affordable for everyone.

Choosing Platinum Skies leaves you with a lot more cash unlocked to invest or use to enjoy life to the full – and you still own half your new home.

Don’t take our word for it…

Meet the owners who have taken the Platinum Skies journey to an accessible and affordable dream retirement

Listen to other testimonials

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It could be the smartest retirement decision you ever make

At Platinum Skies we want you to carry on socialising, working and playing a key role in our communities. We offer freedom, security, and worry-free retirement living. Our ageing population is a triumph of modern society. However, it does present some real challenges. Many over-55s are living on low or moderate incomes and often struggle with the upkeep to their homes and access to the care they need.

There’s never been a more important time to recognise the value in our homes to help improve our lives as we get older. When you compare this with traditional ways of releasing money from your old property, it’s easy to see why so many retirees are choosing to make their move with us.

The key benefits of living a happy, healthy and wealthy retirement with Platinum Skies

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Affordable

That’s why we believe in shared ownership, so you pay just half the property price

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Government approved

Have peace of mind as all of our charges and fees are set by Homes England

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Unlock money

Release the equity from your old home to spend on the things you love.

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Location

Thoughtful locations with ease of access to healthcare and lifestyle amenities

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Lifestyle Managers

On-site Lifestyle Managers to offer support and vibrant communal events

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Downsizing

Our Platinum Mover and Exchange service make moving stress-free

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Helping hand

Trusted care service providers are available, as and when you require it

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Efficient

Low running costs and energy-efficient homes to suit your budget

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Partnership

You’ll get a long term relationship, as we grow together into the future

See how Platinum Skies
can help you today

Live a happy, healthy and wealthy retirement!

  • Choose your stunning Platinum Skies home, pay half, rent half
  • Paying only half makes luxury living truly affordable
  • Unlock more money to live the retirement you’ve dreamed of
  • You’ll always own your new share of your new home
  • Unlock a new home that meets your present and future needs
  • Be part of a vibrant community of like-minded people
  • Save thousands on moving and stamp duty costs
  • All the reassurance of a government backed scheme