quity release is a way of releasing cash ( Equity ) from your family home , the most common name for this is a lifetime mortgage they are available from the age of 55 and over.
You can either take the money as a Lump Sum or draw it down at various intervals have a look below at our '10 Steps to Equity Release '.
Consider your options & talk to your family – Have you considered renting a room, downsizing, financial assistance from a family member, restructuring your finances or other courses of action? You should always discuss this with your family before considering equity release.
- Broker consultation - If equity release is right for you then we will assess your requirements and find the right product for you as well as requesting your family is made aware of your intentions.
- Broker Presentation –Your adviser will then present you with the product that is right for you and your personal circumstances.
- Application to Lender Your application will then be sent to the lender and you will await a formal offer.
- Meeting with solicitor– You must have one face to face meeting with an independent solicitor for comfort and reassurance that you're making the right decision. We would always recommend a specialist solicitor for this important aspect.
- Legal work – Your solicitor will act for you. The solicitor will have the full details of the property and the new loan required and will conduct all of the required legal work. Valuation
- Valuation – Your home will be valued by a surveyor and the report submitted to the lender.
- Formal offer– Once the checks have been completed a formal offer letter of equity release will be issued.
- Searches/questionnaire – The solicitor will then carry out searches and issue a questionnaire for you to complete. On completion and return of the questionnaire you should provide details of your buildings and contents policy.
- Payment & Completion– Payment will be made to you via the requested method of payment. The funds are transferred and your mortgage is complete.
*Equity release may not be right for everyone. It may affect your entitlement to state benefits
Equity Release JARGON:
- Drawdown – Drawdown allows you to release some of your equity with an initial amount, together with an approved 'cash facility' to draw on as and when you need it.
- Equity – The amount of your home that you own that is above any mortgage that may be outstanding. If you own your home outright, you own 100% of the equity in the property.
- Income –Some equity release plans might let you take your money as income rather than a lump sum. Remember though that the income may only be payable for a set period, after which point it may stop.
- Lifetime mortgage – This form of equity release works by you borrowing, or releasing, a percentage of your home's value, which is secured against your home. The percentage you can release will depend on your age and health, with older borrowers alongside those in ill health able to release more than younger borrowers. Interest is charged on the amount you release and the amount you owe increases over time as interest is accrued. The mortgage and interest are repaid on death, or if you move into permanent long-term care. Lump sum
- One single payment made at a particular time as opposed to a number of smaller instalments. This lump sum is tax free.
- Voluntary overpayments – Some equity release products will allow you to make voluntary overpayments without incurring early repayment charges. Typically, these would be 10%
If you'd like to speak to us about Equity Release - please call Chris on 01273 870302