To be over 55 and retired can often mean it is difficult to meet daily living costs. If you are facing this kind of an issue, there is no doubt that you will be looking for a way to increase your income. The good news is that you can do this easily by making use of equity release schemes. With equity release schemes, you can gain a tax-free additional regular income or lump sum from the value of your home in three easy steps.
Qualification – The first step to getting this additional income is to know whether or not you qualify for equity release schemes. The criteria begins with a minimum age of 55 and the owner of the house to qualify. The property must be your main residence & mainly of standard construction.
Your home should also be worth over £70,000 & although a mortgage can exist on the property, this must be repaid with the equity release proceeds to complete the process.
Income is not an issue as equity release schemes require no monthly repayments. Existance of adverse credit can be acceptable to certain equity release lenders, whom have a more relaxed approach than conventional mortgage schemes. Therefore, always discuss your situation with a qualified equity release adviser who should always be independent.
Consultation – Once you know whether or not you qualify for equity release schemes, it is important that you consult a professional before going ahead with the process. Doing so will help you understand if the process is ideal for you as equity release schemes do not suit all homeowners. Equity Release Supermarket can source the most appropriate scheme having access to ALL lifetime mortgages available in the marketplace. They will take stock of your current situation, establish your requirements & discuss your options available. Only then will a recommendation be made which will meet your objectives.
Documentation – Should the equity release recommendation be acceptable to you, then the next steps can be explained to clarify the forthcoming events. Primarily, the equity release adviser will complete an application form which begins the equity release process. This form will depend on the plan you have chosen. Once submitted to the equity release provider, they will then start the administrative process; one of these first steps is by instructing the valuation. In most cases, the valuer will be sent to the property to ensure it meets the criteria and to ascertain its value. This forms the basis of the amount the lender will make & set out the terms of the equity release offer.
In the meantime, the solictors will have been instructed who can start the legal process by sending a property questionnaire & obtaining client authority to act on their behalf.
Once the solicitors have received their copy of the clients equity release offer, it will also include the mortgage deed & associated documents the client will need to sign. Upon meeting all the legal requirements on benhalf of the client & lender then the solicitors can request the equity release funds. This would normally be received approximately 6-8 weeks since application.
A summary of the equity release application process can be seen by Click Here
For assistance with, or to answer any questions on the equity release process, contact the Equity Release Supermarket team on 0800 678 5159.