• Equity Release for Leasehold Properties

    By Carrie Ann on

    More house owners are looking at equity release plans to free up funds from their properties for a variety of reasons. These may range from helping family members to get a foot on the property ladder to home improvements, holidays, or even private care. One of the issues facing those looking to take advantage of equity release is whether they are eligible to apply, given that their property is owned as leasehold. In England and Wales, freehold is the term used to refer to ownership of the property and the land it is built upon. In Scotland, the term used to…

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  • Can you have lodgers or tenants on an equity release property?

    By Carrie Ann on

    With equity release, a fast-growing product in the mortgage industry, there are several issues which homeowners seeking equity release plans for comparison need to check. One question is whether you can have a lodger, or a tenant in your property and still access an equity release plan? First, it is important to distinguish between a lodger and a tenant. The former will live in the landlord’s main residence and share the living accommodation, and the landlord must live in the accommodation throughout the lodger’s time there. The lodger must not have exclusive occupation, so there cannot be a lock on their…

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  • Can Japanese Knotweed Affect Eligibility for Equity Release?

    By Carrie Ann on

    Borrowing money against your home in retirement was once a cumbersome process, but this has become easier over the years, thanks to lenders becoming more relaxed in criteria when offering home equity release plans. There are many benefits to releasing equity from your home, which are commonly written about such as home improvements, holidays etc, however one area not discussed very often is cases where homeowners are ‘unable’ to obtain an equity release mortgage. This article discusses a growing issue of certain properties ineligibility to meet lenders underwriting criteria. Occasionally, we do come across unusual reasons where lending with equity release…

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  • Do you need to pay your mortgage before you retire?

    By Carrie Ann on

    There’s a commonly-held belief that it is a wise idea to try and have your mortgage paid off by the time you retire. But even if this is feasible, is it necessarily desirable? Some experts think that it could be a good thing to hold off paying off your mortgage come retirement age. If you’re nearing retirement, your interest rate may help you decide whether to keep paying mortgage bills or pay it off in full. If the mortgage interest rate is quite low, it might be preferable to avoid pay off mortgage options and keep the cash instead for…

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  • Help Switching Equity Release Plans

    By Carrie Ann on

    With the prospect of interest rate rises in the near to mid-term, it’s a good idea to make sure you have the best deals and rates for all your financial commitments. If you have an equity release plan, this is also worth reviewing for a more reasons than just a potential interest rate rise alone. If you previously took out a lifetime mortgage, there are newer products on the market today that could offer lower interest rates and greater flexibility than the plan you are already on. Current equity release plans carry features such as inheritance protection, the flexibility to…

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  • What rising house prices means for equity release

    By Carrie Ann on

    Rising house prices are a common topic of conversation. Bemoaned by many, they are welcomed by others. One particular group finding a new advantage in the increasing amounts of equity in their homes are those individuals approaching retirement without satisfactory pension pots. Reduced returns on pension investments have, in some ways, been the corollary of the booming housing market. And, as pension pots increasingly fail to live up even to modest expectations, many people are turning to their other major source of wealth: their homes. Knowledge of equity release has increased significantly over the past decade, in line with the…

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  • More Flexibility In Equity Release

    By Carrie Ann on

    Many people have at least a vague idea of what is meant by equity release plans. These vague ideas are often coloured by the negative publicity that has in the past sometimes surrounded the plans or by entirely understandable fears that releasing equity is akin to signing away what is usually an individual’s most valuable asset: bricks and mortar property. Concerned relatives may have weighed in, worried about how equity release might impact on paying for nursing care in later life or about what would happen to any beneficiaries under the equity releaser’s will. It is no wonder that equity…

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