An Introduction To Equity Release

By 2nd July 2019Blogs

Equity release can be a tricky subject and something many homeowners fail to fully understand. Equity release can be a fantastic option and understanding its benefits is essential. There are many equity options ensuring you can always find the right plan for you.

Essex Equity Release have a huge range of plans available and can always discuss which equity plan would be best for you.

Why Use Equity Release?

Equity release is a fantastic solution for many homeowners and is suitable for more than just unlocking extra cash. As this cash be used for anything, it can help you pay off your current mortgage or prevent you from downsizing your property, as well as making home improvements.

Away from your home, equity release can also be used as money in your retirement or to take several long holidays. There is no limit to what your equity can be used for which is why it gives many homeowners the perfect opportunity if you are struggling with finances or just want extra income.

Equity doesn’t have to be used for yourself either. Whether its financial support for the family or getting a family member through university, you always have free reign.

How Can You Release Equity?

Releasing equity should never be a long or difficult process. When working with Essex Equity Release, we will provide advice every step of the way and make sure your equity plan meets all your requirements. We work with many providers to give you the best possible plans, whilst offering a No Negative Equity Guarantee. This ensures your repayment will never cost more than the remaining value of your home.

We can provide our consultations in whatever way is best for you, including:

  • Email
  • Home Visit
  • Meeting at Local Office
  • Phone Call

We want to make this process as easy as possible for our clients, making sure all paperwork is completed quickly and you never struggle to release the right equity plan. Different plans will give you several outcomes and it is important to understand the criteria and outcome of every plan.

You must be at least 55 years old to release equity from your property. If you choose a home reversion plan, you and your partner must both be 65 or over.

Understanding Lifetime Mortgages & Home Reversions

When releasing equity from your property, there are two types of equity you can choose from. These are lifetime mortgages and home reversions. Lifetime mortgages are the most popular choice when releasing equity as this allows you to retain full ownership of the property. However, this does mean taking out another loan against the value of your property, similar to a regular mortgage.

Lifetime mortgages are often more popular as you do not have to repay the loan until you pass away or move into long-term care. This means there are no repayments until this time and therefore you can enjoy the money until your home is sold.

Home reversions offer a different option to homeowners looking to release equity. Instead of taking a loan out against the value of the property, home reversions allow you to sell all or part of your property to a third party. This means you give up part ownership of your property, whilst still being able to live there rent free until you pass away or move into long term care. When selecting this equity plan, you can choose from receiving a lump sum, monthly payments or both.

Whilst home reversions offer a fantastic option, they are not as popular as you have to sell part of your home. This means when you eventually choose to sell all of your home, you or your family members will not receive as much money.

Find Your Equity Plan

Essex Equity Release offer a number of fantastic equity plans and will work with you personally to provide the advice you need. All equity schemes are recommended by the EEARC and sanctioned by the Equity Release Council, ensuring no monthly payments and No Negative Equity Guarantee. Contact our team to organise a consultation and call 01268 799211 or fill in our contact form to make an enquiry.