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Equity Advisers

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.

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.