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Equity Release Tips

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.

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.

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.