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Equity Release

The Benefits Of Equity Release

By | Equity Release

Equity release is a fantastic option for many homeowners when used correctly. By viewing different equity release plans, you can find the right plan, taking advantage of the benefits of equity release. Read on for some of the biggest benefits of releasing equity.

Essex Equity Release offer advice regarding all equity release plans. We can also make a recommendation so you have a good understanding of the best plan for your specifications.

Paying Off Existing Debts

As you get older, you want to make sure that any existing debts you have from earlier in life are dealt with and fully paid off. Therefore, you can enjoy the latter stages of life without worrying about repayments.

By taking out an equity release plan, you will receive a lump sum of money. Whether the debts you currently have are small or little, you can use this lump sum however you like. You could be left with a lot of money once debts are paid off or only a small fund. Either way, this can get a massive financial burden off your chest, completely clearing debts.

Live In Your Home Rent Free

Despite receiving money for part of your property’s value, you will never have to move out. This means you can live in your home rent-free until you and your partner pass away or move into long-term care. With money still available from the equity release plan, this can give you a very comfortable living situation.

The more common alternatives to equity release is to sell your home and downsize, get a loan or decide to rent for the rest of your life and sell your home. Equity offers a much more suitable options and means you can stay in a home that you love without monthly payments.

Tax-Free Money

Benefits of equity release also include all money being completely tax-free. Regardless of how much money you would like to receive in your plan, you will not be taxed for any of this. This makes it a great option to receive the highest amount of money possible, as long as the plan is suitable for your specifications.

No Negative Equity Guarantee

No negative equity guarantee is offered by all equity release schemes approved by the Equity Release Council. This means, when you sell your home, the amount of money you owe to your provider will never be more than the value you sell your property for.

Even if your outstanding debt is more than what the property is sold for, you will not have to repay it. This ensures that homeowners who release equity will never be left in debt. Additionally, no debt can be passed onto children and other family members.

Spend The Money How You Like

Once equity has been released, that money is yours to spend how you like. There are absolutely no restrictions on what you can do with it. Whether you want to help out family members, travel a bit more or just live with financial freedom, the choice is completely up to you.

This means you can live a lot more leisurely if you desire. Meanwhile, also having the option of how you would like to make repayments. This gives you a lot more financial stability and power so you no longer have to worry about money.

Contact Us

For more information regarding the benefits of equity release and whether it is the right option for you, book an appointment with Essex Equity Release today. You will receive a fast response from our team. We will organise a chat at your home, our office, via email or over the phone. Call us on 01268 799211 or fill in our contact form to make an enquiry.

Questions To Ask About Equity Release

By | Equity Release

Equity release is a big step for any homeowner to take. If you are considering this scheme, it is important to find an option that is perfect for you. Before choosing an equity release plan, you should always use expert equity release advisors and find several questions to ask about equity release.

Essex Equity Release are Equity Release Council members. This ensures we offer unbiased advice and can offer plans that are approved by the council from a selection of providers. We can advise you on all the questions to ask about equity release before finding a suitable plan.

How Much Will It Cost?

For many homeowners, the first thought is often about how much money you will be receiving from an equity release plan. However, you should make sure you know exactly how much the equity release plan is going to cost you in the long-term.

Although some plans can fluctuate based on the interest that you have to pay on the plan, you can get a rough idea of exactly how much money you will have to pay. You will make your repayment after the plan ends. This is due to both you and your partner passing away or moving into long-term care before selling the house. If you sell your house earlier, you may have to make an early repayment which could be more expensive.

This makes it so important to consider all the options that come with equity release and exactly how much it could end up costing.

Are Plans Approved By The Equity Release Council?

If plans are not approved by the Equity Release Council, you should not consider them as a homeowner. Plans that are approved by the Equity Release Council will give you a much safer and more dependable option. This includes features such as:

  • Move Homes (Subject to Criteria)
  • No Negative Equity Guarantee
  • Remain in Your Home As Long As You Want
  • Ring-Fence Inheritance
  • Spend Money However You Like
  • Switch Plans (Subject to Criteria)

A No Negative Equity Guarantee means that you will never owe more than the value of your home. Therefore there is no debt after the equity plan ends. You should also find equity release advisors who are members of the Equity Release Council. This will ensure all plans made available are suitable for you and give you the financial freedom you want.

Can I Leave An Inheritance?

Although you may want extra funds right now for your own life, many homeowners want to leave an inheritance for their children and other beneficiaries. When selecting your equity release plan, leaving an inheritance should never be an issue. With many plans, once you sell your home, you should still have a lot leftover for children to inherit after the debt of equity release is paid off.

If you are still worrying about inheritance, you can choose an equity release plan with an inheritance protection guarantee. This allows you to protect a percentage of your home’s value so if the repayment you make is more expensive than you expect, you can still pass on your beneficiaries after the house sale, regardless of an outstanding loan.

What Equity Plan Is Best For Me?

Most importantly, if you decide to release equity, you should make sure the plan is perfect for your needs. This is why, instead of going to the providers of the equity plan, you should seek equity release advisors. This will ensure the advice you receive is based on which option is best for you. Going to a provider could mean finding the equity release plan right for them.

Advisors will also offer a recommendation based on your specifications and the criteria of each plan. Although you do not have to choose this plan, it will be one of your best options. We make sure you receive all the features you want from equity release.

Contact Us

For more information regarding questions to ask about equity release, contact Essex Equity Release today. You will receive a fast response from our team, organising a suitable time and location to offer equity consultation. Call us on 01268 799211 or fill in our contact form to make an enquiry.

Common Mistakes When Releasing Equity

By | Equity Release

Homeowners who are not experts in equity release may find the process hard to grasp, making costly errors. When used right, releasing equity is one of the best options for homeowners to unlock cash from your property. However, it is essential not to repeat common mistakes.

Essex Equity Release offer advice regarding equity throughout Essex and the surrounding areas. We always find the right plan for you, with no mistakes when releasing equity.

Using Equity For The Wrong Reasons

Equity release is a fantastic option for homeowners. However, if you are not releasing it for the right reasons then it can be a scheme you want to avoid. If you need extra finances, whether this is to be more financially stable, pay off a mortgage or debt, holiday or help out family members with money, then using equity release can be very useful.

Problems occur when some homeowners are talked into equity release by providers and only realise further down the line that it may not benefit them. It can be easy to be talked into equity release if you do not understand the specifications of your plan. Speaking to an unbiased equity release advisor is essential so you have good knowledge of the plans best for you and what the outcomes will be of choosing each plan.

Moving House or Downsizing

Homeowners often plan to move house or downsize in the future. Although some equity release plans are happy for homeowners to move house and continue with the plan, it is not that common and could leave you having to pay off more than you expect.

The amount you owe when your equity release plan ends will vary. If you decide to move house or downsize before the minimum length of your equity plan, this means you will have to pay an early repayment charge. Some plans will allow you to move home but this early repayment charge could cost you dearly. When looking to move home in the future, make sure the equity plan you choose allows you to do this.

With downsizing, you will also have to make an early repayment charge. If the home you downsize to is significantly lower in value, this could breach the criteria of your plan. As downsizing will give you suitable funds from the sale of your property anyway, releasing equity does not have to be a priority for these homeowners.

Not Getting Advice

Not getting advice is possibly the biggest mistake you can make before taking out equity release. Unless you are already an expert in equity plans, getting advice should be one of the first steps you take. This means you can view a range of plans and also receive a recommendation on what is best for you, not the provider.

Without advice, you may find a plan that is suitable but you could overlook some of the criteria. Getting advice should help you avoid this problem and make sure you are only choosing a plan that is perfect for your specific situation.

Not Using The Equity Release Council

You should only ever use plans that are fully approved by the Equity Release Council. This will make sure any plan you decide on has a No Negative Equity Guarantee. Therefore, you can never be left in debt after repayment has been made. Family will also not receive this debt.

Essex Equity Release are members of the Equity Release Council and will provide plans that are suitable and safe.

Contact Us

Make sure you avoid common mistakes when releasing equity and contact Essex Equity Release today. You will receive a fast response, organising a consultation at a suitable time for you and any location you require. Call us on 01268 799211 or fill in our contact form to make an enquiry.

The Right Time To Release Equity

By | Equity Release

Many homeowners are unsure whether equity release is right for them. If you are considering to release equity, it is important to know which plan is best for you and what the benefits are. However, you should also consider if it is the right time for you to release equity.

Essex Equity Release offer unbiased and expert equity advice in Essex and throughout the surrounding areas. With our support, finding the right time to release equity is never an issue.

Legal Requirements

Firstly, not everyone can release equity. Sometimes this isn’t even dependant on age. Your property value may not be high enough or other factors mean there are no equity plans suitable for you. You should never assume that you can take out equity release as you must meet the criteria and legal requirements of a plan.

There are two main types of equity release schemes, which are lifetime mortgages and home reversions. You and your partner, if you are borrowing jointly, must be at least 55 years old before you can use a lifetime mortgage. To choose a home reversion equity plan, you and your partner must be at least 65 years old.

In addition to your age, you must own a property in the UK as your main residence. The property must be in reasonable condition and over a certain value, depending on the plan you are looking to choose. Not all property types will be accepted so this will also be a factor. Equity release may also not be suitable if you have dependants living with you. Additionally, if you already have existing secured loans or mortgages against your property.

Is Equity Release The Perfect Option?

Equity release allows you to release funds from your property, without having to sell your home. With many equity release schemes, repayment will only be required when you pass away or move into long term care. For many, it seems like the perfect way to gain extra money without having to constantly worry about monthly repayments or being left in debt. Debt is never an issue as all equity release plans at Essex Equity Release offer a “No Negative Equity Guarantee”.

Despite this, it is not the best option for all homeowner. It is very important to consider the different options you have available. Deciding to release equity at any age may give you the funds you need for holidaying or to help out family. You can use this for whatever you like. However, it is important you release equity for the right reasons, even if this is just to have more financial security.

There are many benefits to using equity release but repayments will be required towards the end of your life. Some plans will also be more expensive than others, so it is important to find the right plan, rather than jumping at the chance of unlocking cash.

Our advice service ensures the best plan for each individual is always available. With us, you never make any errors releasing equity.

What Age Should I Release Equity?

You may be eager to release equity from your home. However, doing this at the age of 55 could mean you do not receive the best plan you can find. Although it can still be a good option for many homeowners, different and better plans will become available as you get older. Each plan will have its own criteria. For homeowners who are older and have larger property value, plans can often be even better.

Of course, you also want to make sure the cash you unlock from your home is available to use and you can actually enjoy it. Finding the right time to release equity is difficult. However, this can be done by finding a plan that is suitable for your specifications at an age you can enjoy the money, pay off loans or become financially stable.

Contact Us

To discuss the different equity release plans we have available from a number of providers, contact Essex Equity Release today. You will always receive a fast response from our team. Furthermore, appointments are made at a suitable time and location for you. Call us on 01268 799211 or fill in our contact form to make an enquiry.

How Has Equity Release Evolved?

By | Equity Release

Equity release has significantly grown in popularity over the past 3 decades and is now a very sustainable and safe option for homeowners. There are several differences in equity schemes to when they were first made available and why they are now such a good option.

Essex Equity Release provide advice to all homeowners. We work with a number of providers to deliver the best schemes and plans for you.

What Was The Problem With Equity Release?

Equity release schemes have been available in the UK for over 30 years. Beginning in the 1980s, the products and schemes that were available caused problems for future development. The schemes that caused difficulties were home income plans. It was predicted the plans would bring significant reward for homeowners, as property value world increase and inflation would be higher than mortgage interest rates.

Homeowners were also advised to invest their money from equity release into stock market bonds. However, this produced poor results. As interest rates rose and property values fell, it left many homeowners to have growing debts due to equity release, rather than being a successful scheme to help homeowners.

Despite this, these schemes are no longer the same. Equity release is a much safer and more beneficial option for homeowners and will provide you with the financial security you desire.

Difference In Opinions

Due to the plans that were available in the 1980s and early 1990s, it meant there was no cap on interest accrued. Homeowners could end up owing everything from the sale of their home and having debt after that.

Nowadays, plans that have been approved by the Equity Release Council ensure there is a no negative equity guarantee. This means the repayment will never be larger than the value your property is sold for. There is never any debt for both homeowners and their children or family members, giving you complete peace of mind over the safety of equity release.

You will also have the option to protect any inheritance you want to leave from the equity release plan, along with leftover funds from the property sale.

How Has Equity Changed?

Equity has changed so there are now two types of popular equity schemes. These are lifetime mortgages and home reversions. Lifetime mortgages mean you do not have to make repayment whilst you are alive or living in your home. The interest will roll up and only has to be repaid when both you and your partner pass away or move into long-term care. This means the house can be sold before any repayment is needed.

Home reversions are slightly different, as you sell a part of your home. A lender will purchase a percentage of your home. When the property is sold, the lender will receive the value for the percentage of the property purchased. The payment you receive could be lower than market value for your home. When it comes to being sold, the lender could receive more money.

Equity Release Plans Today

As of 2017, £3.06bn was extracted from properties according to the Equity Release Council. Increasing by £909m in 2016, this demonstrates the growth in popularity and the reliability of using equity plans in the modern age.

Equity plans have also become more varied, giving you more options suited to all individual specifications. As equity continues to drop in price, you can find beneficial plans for your finances. Meanwhile, you do not have to spend too much money now or in the future.

Contact Us

For more information regarding equity and why this is a safe option for you, contact us today. Essex Equity Release will always provide a fast response, organising a suitable time to visit you at an ideal location. Organise a consultation today and call us on 01268 799211 or fill in our contact form to make an enquiry.

What You Need To Know About Equity Release

By | Equity Release

Equity release is a fantastic option for many homeowners. When choosing your plan, there are several factors you must consider and things you need to know to choose the best option for your specific needs.

Essex Equity Release offer advice regarding what equity release is and which plan is right for you. you can always depend on us for a detailed consultation.

Lifetime Mortgages or Home Reversions

When choosing your equity release plan, you have the choice of two schemes, which are lifetime mortgages and home reversions. Lifetime mortgages are the most popular option and are available for all homeowners over the age of 55. With a lifetime mortgage, you will borrow money against the value of your home with a fixed or capped interest rate. Whilst some plans give you the option of monthly repayments, this plan will mean your interest builds up for repayment.

To take out a home reversion plan, you must be over the age of 60. With this plan, a provider will pay for part of your home at below market value. You can continue to live in the home rent-free, however, you will not own the entire property. When the property is sold, proceeds of the sale are split based on the percentage you and the lender own. If you sell 40% of your property, then when the property is sold, your lender will receive 40% of what the property is sold for.

Lifetime mortgages are often more popular as, although the interest will build up to be repaid at the end of the plan, you receive the full amount of what your home is sold for, before making repayments. With a home reversion, it means you could lose money if your property value increases between when you select the plan and when you sell the home.

With both schemes, you can stay in the home, rent-free. The plan will come to an end when you and your partner pass away or move into long term care.

Risks Of Equity Release?

As there are now many more plans and providers available, it means finding a suitable and safe equity plan is much easier. All plans that we advise on are approved by the Equity Release Council. This ensures you have a No Negative Equity guarantee, never leaving you in debt. However, there are still some risks to equity release, meaning it is important to seek advice first. This will ensure you choose the option that is right for you and not just the provider.

As your equity release plan ends when you and your partner either pass away or move out, this means early repayments could be possible if this occurs sooner than expected. If you are required to make an early repayment, it could lead to an additional fee, meaning you would have been better off without releasing equity. Whilst these scenarios are unpredictable, it is important to prepare for the worst situation to ensure you make the right decision.

With a range of plans available, it means you can find a plan that is tailored to your specific needs. Each plan will have different criteria. This can include the option for features such as moving home, making early repayments or monthly repayments and therefore your plan becomes less risky, which is ideal for most homeowners.

Are You Eligible?

Before releasing equity on your home, it is also important to make sure you are eligible for equity release plans. There are several conditions you must meet to be eligible for lifetime mortgages or home reversion equity plans. This includes:

  • How Much Outstanding Debt You Have On Loans or Existing Mortgages
  • Own A Property In The UK
  • Property Must Be In Reasonable Condition & Over a Certain Value
  • Whether You Have Any Dependants Living With You
  • You (or Both of You) Must Be Aged 55 or Over for a Lifetime Mortgage
  • You (or Both of You) Must Be Aged 60 or Over for a Home Reversion

Depending on the plans you are interested in, there could also be several other conditions that must be met. Alternatively, you may only have to meet small criteria.

Contact Us

For more information regarding equity release and what you need to know, contact Essex Equity Release. We can provide a fast response to all clients, regardless of where you are located. Booking a quick consultation via email, phone call or face to face, you will receive the advice you need. Call us today on 01268 799211 or fill in our contact form to make an enquiry.