Equity release is a mortgage scheme which allows homeowners (55+) to release equity against the value of their property. If you are worried about finances after your retirement then equity release could be a perfect solution for you. The best thing about equity release is that it allows you to live in your home for the rest of your life rent free.
Once the whole equity release schemes application process is complete, you will eventually receive your lump sum or regular income. This money is tax-free and there are no limitations on how to spend it. Many people considering making improvements to their property, repay their outstanding debts, holidays, new car or even purchase a new caravan or motor home with this money.
How to qualify for equity release schemes
To apply for equity release, you have to be 55 or over and own a property with a little or no mortgage. The value of your home/property also needs to be greater than £70,000. The property ideally should be of standard construction with no trust attached.
Any leasehold period usually needs to be in excess of 70-75 years. However, if the term is less than this then a lease extension can be applied for, or even the option to purchase the lease can be undertaken. This can be applied for at the same time as the equity release application, so that the two aspects are running concurrently.
Hopefully, dependent on the landlord’s response with legal enquiries etc by the time the lease has been sorted, the equity release funds can be made available. Equity Release Supermarket have also had clients who use the equity release proceeds to pay for any lease extension or even lease purchase as this will undoubtedly add to the value of the property in the long run.
For a solicitor who specialises in both equity release & lease arrangements please visit Goldsmith Williams.
How to calculate equity release
Today, you will find several online sites which provide calculators. You can use these calculators to estimate how much equity can be released against the value of your property.
To find out, you have to enter your current age and the value of your property. If you have any mortgage then you have to also enter its amount as this figure will be deducted from the top line release figure. These details are enough to find out the amount of cash you can get against your home.
The Equity Release Supermarket online calculator is available if you click here.
Due to different demands, financial institutions have come up with different equity release schemes. Home reversion plans and lifetime mortgages are the two most popular schemes present today.
To establish how much you can raise or use the calculator tool, or to discuss in greater detail please call Mark Gregory on 0800 678 5159 or email firstname.lastname@example.org.