Equity release schemes are designed to financially secure retired individuals standard of living in their golden years. Any individual who is over 55 years of age and owns a home can reap the benefits of these schemes. Equity release schemes allow the owner to acquire tax free cash for their assets. The reason behind the rapid growth of equity release schemes is the unique features and benefits they offer to the user.
A few features are listed below:
The only loan where the user does not have to think of repayment
Equity release schemes do not force you to repay the loan. These schemes let you enjoy the amount you receive from your assets for life. The payment of the loan is done by the executor of the scheme after death or moving into long term care. It is also the executor of the scheme that will be responsible for the sale of the property & dependent upon which scheme was selected at the outset, will determined what timescales repayment of the mortgage needs to be repaid back to the providers.
This period can be anywhere between 6-12 months from the deceased passing away. This will be in accordance per the mutually agreed terms and conditions of the mortgage agreement.
Things you should know about equity release
The very first thing one should know about this scheme is that you must be be the owner of the property & it must be your main residence. One cannot let the property and use it to gain cash from an equity release scheme. If you are the owner and are planning to opt for this scheme then see to it that your property is in good condition too.
During the application process the property will be valued & surveyed so that the value can be ascertained. This figure will form the basis of the mortgage offer & lending conditions. If the lender feels the property requires any maintenance, they can stipulate that any essential repairs are carried out BEFORE the cash is released. This will be decided on a case by case basis & can also vary between the equity release lenders.
That you lose the rights on your property is the biggest myth. On lifetime mortgage schemes the person still owns the property and has full rights over it.
Given my 10 years experience of advising on equity release, I have only ever known 2 cases ever be declined; one for subsidence which still could have been put right & the other was a house in total disrepair. Nevertheless, upon re-application with Godiva, this case was subsequently accepted!
Therefore, there is not a single rule across the range of equity release companies & therefore it can be your experienced equity release adviser that can make the difference between getting accepted or declined.
For this reason you should always seek the services of an experienced independent equity release adviser such as Equity Release Supermarket who have over 50 years combined equity release service.
Call freephone 0800 678 5159 today & talk with no obligation to your friendly equity release advisor.