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Release Equity

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.

5 Reasons To Release Equity

By Release Equity

Equity release isn’t ideal for everyone and there are several factors and specifications you should consider before releasing equity. Despite this, it can still be a very good option for the majority of homeowners. There are many benefits and reasons that you should release equity from your home.

Essex Equity Release can provide advice to all homeowners regarding equity release. We make sure you always have the information you need to choose the right plan.

Cut Costs & Remove Debts

One of the most popular reasons for releasing equity is to prevent future costs and pay off any outstanding debts that you still have. In later life, you will often want to get most payments out of the way so you can enjoy your remaining life, without worrying about outgoing payments.

This allows you to keep any income you still have rather than immediately losing it due to repayments and debt. Helping you cut costs in the short and long-term, you should still have money leftover from equity release after that to ease any financial burdens.

Holidays, Travelling & Spending

In a recent survey by Over 50 Choices, holiday and travel were listed as the reason for releasing equity by 4% of people. Despite this being a small number, it is still a great option. If you have a strong financial position but do not have lots of disposable income, releasing equity can make your later years much more enjoyable.

Whether you are looking to purchase a vehicle, take a trip to the Caribbean or buy a holiday home, you are not limited by your spending when releasing equity. You can use the money to fund anything you require!

You should always be able to live your life the way you want. With the help of equity release plans, this is something you can easily achieve.

Gifting Family Members

Equity release doesn’t have to be used for your own benefits. If family members or close friends are struggling with financial issues, gifting family members could be one of the best options for you after releasing equity.

As you have complete freedom over what you do with your money, supporting family members can always be a good choice. Whether this is to help them with debts, mortgages or loans or it is a different financial issue, releasing equity can always ease your worries.

Receive A Plan Suitable For You

Another reason you should release equity is that, with many plans available, you can always find an option suited to your needs. Our team will advise you regarding all plans and make sure you receive the lump sum you require at a fair interest rate, so you never have to worry about repayments until you have passed away or moved into long term care.

Additionally, with most equity plans, you have the option to ring-fence a certain amount of money, allowing you to leave an inheritance. With so many plans available, you can always find a criteria that matches your specifications.

Staying In Your Home & Making Repayments

The biggest benefit of releasing equity is the fact you can stay in your home until both you and your partner have moved into long term care or passed away, without making repayments. This makes equity release unique among different types of loans, as you will never have to make monthly repayments.

With a no negative equity guarantee also included in all plans, this ensures when you have to sell the property, your repayment will never be larger than the amount the property was sold for.

Contact Us

If you would like to release equity or want more information regarding the plans that we have available, get in touch with Essex Equity Release today. We can make a quick booking to discuss your requirements and find the perfect plan for your needs. Call us today on 01268 799211 or fill in our contact form to make an enquiry.