| Financial
Services
> Mortgages
> Information
> Equity
Release >
Equity Release
is a means of using
the value of your
home to receive
either a lump sum
of cash or regular
monthly instalments.
There are two
types of equity
release:
In both instances,
age is the primary
factor in determining
the percentage of
the value of your
home that can be
released.
A person of an
older age can release
a higher percentage
of the value of
their home, than
a person of a younger
age, as they are
not expected to
live as long.
There is no maximum
age limit for equity
release, although
applications are
not usually granted
for anyone under
the age of sixty.
Important factors
to consider:
• Equity release
is not regulated
by the government.
• When choosing
an equity release
plan, ensure that
it has negative
equity guarantee.
This means that
in the event of
the value of your
property decreasing,
the debt will also
decrease, in addition,
this will ensure
that any outstanding
debt, after the
sale of your property
will not be passed
on to your next
of kin.
• Not all
lenders will allow
you to move home
after you have taken
out an equity release
plan.
• If you are
living with a partner,
you must take out
a joint plan to
ensure that the
debt will only be
reclaimed after
the death, or admittance
into long term care,
of the last surviving
partner.
• There can
be hidden charges,
such as; legal fees
(as a solicitor
is needed to set
up the equity release
plan), you will
be charged for the
surveying of your
property. There
are also charges
for the setting
up, maintenance
and redemption of
the loan.
• You retain
full ownership of
your home until
your death or admittance
into long term care.
|
RealVacances
Last
Minute & Special Offers