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Equity Plans

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.

Tips To Choose The Right Equity Plan

By Equity Plan

Choosing the right equity plan is essential for every homeowner. The equity plan you decide on should meet all specifications, so you never regret your decision in the future. As the criteria of each plan is varied, it is important to consider several aspects of the equity plan.

Essex Equity Release offer advice and tips for every equity plan, ensuring you have the information you need to make a good decision.

Long-Term Needs

When choosing our equity plan, it can be easy to think solely about the amount of money you are receiving. Whilst, in the short-term, this is a big priority, it is important to consider your long-term needs. A plan which offers the most money but has a higher interest rate may not help you in the long-term.

By finding a plan that does offer enough funds in the short-term, without having to make monthly repayments or a large lump sum with built-up interest, is always ideal in the long-term. Homeowners must consider which plans are best for now and your future, rather than focusing on the initial money received.

Switching Properties & Plans

Within the equity plan you decide, this will usually include criteria on whether you can switch properties or plans. Many of the equity release plans that are available today offer much better rates and specifications than previous plans. This trend could continue in the future so having the option to change your plan in the future could be ideal.

Whether you are looking to switch properties to a similar style or decide to downsize, this will also need to be included within the plan specifications. If you are considering downsizing, you should also think if there is a need to release an equity plan. Several equity release plans will be available that allow you to downsize. Finding a plan which offers more funds than downsizing would create is essential when you are switching property.

How Much Will It Cost You?

Whilst equity release does not have to be repaid until both you and your partner move out of the home or pass away, it is still important to consider how much each plan will cost you. The majority of homeowners want to leave an inheritance for their family. All our plans have a No Negative Equity Guarantee, meaning there is no debt that your families could inherit.

However, to make sure they receive inheritance once the house is sold, there are several factors to consider within the plan. This includes ring-fencing a certain amount of money you take out that can be left as an inheritance. Alternatively, you can choose to make monthly payments or an early repayment so interest does not build-up or find a plan that will leave you with leftover funds once the property is sold.

You may not want to make monthly repayments, however, this could be the best option for your needs.

Family Considerations

Your equity plan is specific to your requirements but talking to your family about your options is also important. Our team can recommend a suitable plan for your needs. Despite this, family can also offer good advice and make sure you are considering all aspects of the plan so that you make the right decision.

If you do not want to involve family, close friends can also be involved so you have a good understanding of every plan.

How Much Do You Need To Release?

The plan you choose should not always be what offers the most money. Before selecting your plan, you should think about exactly how much you actually need to release, rather than what is the most you could release.

If you try to release as much as possible, it may not give you the best plan for the future. By thinking about exactly how much you want or need, this can often lead to the best plan being chosen.

Contact Us

If you would like advice regarding equity release plans, get in touch with Essex Equity Release. Our team can quickly organise a suitable time to provide our consultation and give you any information needed. Make an enquiry and call us on 01268 799211 or fill in our contact form today.