Equity Release for High-Value Homes: Tailored Solutions
For high-net-worth (HNW) property owners, your home is not just where you live—it’s a substantial asset that can work for you. Whether it’s an elegant Georgian townhouse in central London, a sprawling estate in Surrey, or a countryside mansion in Hampshire, your property is likely to hold significant untapped wealth.
Equity release can offer you a way to homeowners over 55 to access that wealth without having to sell or downsize, giving you the financial freedom to achieve your goals.
At Kerr & Watson, we offer tailored equity release solutions for HNW clients in London, Surrey, and Hampshire, helping you unlock funds discreetly and efficiently while safeguarding your legacy.
Equity release is not for everyone, as it erodes the equity in your property, so it’s essential to take professional advice.
Why Consider Equity Release for Prime Properties?
Equity release is a popular choice for later life homeowners with prime properties, particularly in desirable locations such as Mayfair, Kensington, Chelsea, the Surrey Hills, or the New Forest.
Unlike traditional mortgages, lifetime mortgages allow you to access the value tied up in your property, allowing you to roll up interest so monthly payments are not required (unless you plan to make overpayments with the products that can permit them).
Find out Your Options
Key Benefits for High-Value Homeowners:
- Maintain Ownership with Lifetime Mortgages: Stay in your cherished home while accessing the capital tied up in its value. You maintain ownership with lifetime mortgages (this is not the case with home reversion plans so speak with an adviser).
- Discreet Liquidity: Ideal for HNW individuals who prefer not to liquidate other assets, such as investment portfolios or family trusts.
- Reduce Inheritance Tax: Potentially lower your estate’s taxable value by releasing equity, potentially reducing inheritance tax liabilities. You should always take professional tax advice.
- Early Gifting Opportunities: Help your family now by funding a child’s first home or providing for loved ones. This may incur an IHT liability so you should consult a tax planner.
For HNW property owners in Surrey, Hampshire, and London, equity release is not just a financial tool, it’s a way to maximise the value of your lifestyle.
Loan-to-Value (LTV) Considerations
The amount you can release depends on a percentage of your property’s value, known as Loan-to-Value (LTV) and the age of the applicants. The older the applicants are, the more they can release.
For example:
- A homeowner in Surrey with a property valued at £3 million may be eligible to release significant amounts, such as between £750,000 and circa £2 million, depending on the plan and age of the applicant when taking it out.
- Properties in Hampshire with significant acreage, stables or listed status may require specialist products to reflect this position.
You should always speak to an equity release adviser to find out what you can borrow as this can vary significantly.
Special Features of Prime Properties
High-value homes in areas like London, The Surrey Hills or Hampshire countryside often come with unique attributes:
- Extensive Land: Many prime properties include several acres of land. Some lenders may exclude a portion of the land in their valuation or refuse to lend on the property if they felt the resale market was limited.
- Outbuildings and Amenities: Mansions with features like stables, annexes, or swimming pools require bespoke consideration in equity release plans.
- Heritage and Listed Homes: Historic properties in locations like Winchester or Godalming often require specialist lenders who understand their market appeal and limitations.
- High Service Charges: Apartments in grand buildings in London such as Chelsea, Kensington or Hampstead often come with high service charges due to the costly nature of keeping these buildings in tact.
Our tailored approach ensures no detail is overlooked when securing the best plan for your unique property.
Why Equity Release Can Sometimes Appeal to HNW Clients
For many HNW property owners, equity release may offer an elegant alternative to traditional financing.
Rather than selling investments or family assets, you can unlock funds tied to your property while keeping your financial portfolio intact and making no monthly payments on the amount released.
Benefits for Your Wealth Management Strategy
- Preserve Investments: Equity release allows you to maintain or grow your investment portfolio while accessing liquidity.
- Potential Tax Efficiency: By reducing the value of your estate, equity release can help lower your inheritance tax liability. Always consult a professional tax advisor for personalised guidance.
- Flexibility: Many plans allow voluntary repayments of up to 10% per year without penalties, reducing interest accrual and increasing flexibility. This means that you can make monthly payments to the lender to alleviate the interest rolling up if you stick to them and pay the same as the annual interest rate. Your mortgage adviser will be able to calculate this for you.
How Kerr & Watson Supports Clients in London, Surrey, and Hampshire
At Kerr & Watson, we provide a tailored service for homeowners across London, Surrey, and Hampshire, offering solutions designed around your unique property and financial situation.
What We Offer:
- Specialist Knowledge: We understand the potential complications of high-value properties, from listed homes in London to sprawling estates in Surrey or Hampshire.
- Access to Exclusive Lenders: We work with lenders who can accommodate high value properties, ensuring you benefit from the best bespoke plans available.
- End-to-End Support: From your initial consultation to the day your funds are released, we manage every detail for you.
Why Choose Kerr & Watson?
Discretion and Privacy: We provide a confidential, professional service, ensuring your financial matters remain private. We always invite your family to be involved in the process should you wish them to be.
Bespoke Solutions: Every recommendation we make is tailored to your individual goals, property, and circumstances.
Proven Expertise: With years of experience working with high-value homes, we know the potential complexities of prime property equity release.
Examples of Properties We Can Help With
Equity release may be needed against a wide range of high-value properties. Examples include:
- Luxury Apartments and Townhouses in Chelsea or Belgravia: For those seeking significant equity release in London’s most prestigious areas, potentially with high service charges if the property is an apartment.
- Sprawling Surrey Estates: Properties with acres of land, outbuildings, and stunning countryside views.
- Historic Hampshire Homes: From Georgian mansions to listed cottages in Winchester or Farnham, we can explore securing equity release for heritage properties.
Common Uses for Equity Release Among HNW Clients
The funds unlocked through equity release can be used in countless ways, depending on your goals:
- Lifestyle Enhancements: Enjoy luxury travel, purchase cars, or renovate your property to make it more suited to your needs as you grow older.
- Supporting Family: Provide early financial gifts to children or grandchildren, such as funding property purchases, weddings or educational opportunities. This may result in an IHT bill so take professional advice
- Philanthropy: Using the capital to support charities or causes close to your heart.
- Inheritance Tax Planning: Reducing the taxable value of your estate, following qualified IHT planning advice (not available through Kerr & Watson) to ensure more wealth is passed on to your loved ones.
At Kerr & Watson, we take the time to understand your motivations and create a plan that works for you. We also look at the alternative solutions as equity release will not be suitable for all homeowners even if they meet criteria.
Contact Kerr & Watson
Your prime property in London, Surrey, or Hampshire deserves a bespoke approach. It may be that the situation makes equity release harder to achieve or possibly not suitable at all.
At Kerr & Watson, we combine specialist knowledge with a personalised, discreet service to help you explore whether equity release is available, and whether or not it’s the best solution for you.
Whether you’re looking to support family, fund lifestyle goals, or plan your legacy, we’re here to help you make the right decision.
Contact us today for a confidential consultation.
EQUITY RELEASE WILL INVOLVE A HOME REVERSION PLAN OR A LIFETIME MORTGAGE, WHICH IS SECURED AGAINST YOUR PROPERTY AND WILL REDUCE THE VALUE OF YOUR ESTATE AND IMPACT FUNDING LONG-TERM CARE.
