The equity in your home is the value of your home minus any mortgages and secured loans. Traditionally equity has been passed down through generations as inheritance however it is becoming increasingly popular for homeowners aged over 55 to release some of their equity to enable them to enjoy their lives to their full potential with less financial restraints.
With increasing costs of living, life expectancy increasing and pensions not being the safety net of yesteryear the prospect of reducing working hours, income or retiring entirely can leave people uncertain about their financial stability.
If you have been having concerns about how changes in your income will impact your lifestyle then Equity Release could be the option for you. Of course with you having an asset there is the obvious solution of simply selling your property and downsizing, but for many people the stress of buying and selling, moving home and bidding farewell to memories and a community in which you may have lived for years can be too much.
Equity Release would enable you to remain in YOUR home and with YOUR memories.
Want to find out more? Read on….!
Are you eligible?
- Over 55 years of age
- Your home is worth at least £70,000
Most popular reasons
for Equity Release
- Tax free
- Make home improvements
- Repay unsecured debts (credit cards, loans)
- Gift money to family, perhaps for a house deposit, wedding, holiday
A summary of Equity Release
- Receive a tax free cash lump sum
- Usually no monthly repayments unless you opt for this
- You will still own your home
- You can stay in your home for as long as you choose to
- You can spend the money however you want
- You have the ability to ringfence a portion of your property to guarantee inheritance with some plans
- You will never owe more than the value of your home with Equity Release Council approved plans
- You can still move house in the future with Equity Release Council approved plans (subject to criteria)
- It will reduce the value of your estate and may affect your entitlement to means tested benefits
Stages of the Equity Release Proces
- Telephone: Speak to Renew Advice and ask any initial questions, if you would like more information we can arrange a free, no obligation consultation in your home with our fully qualified Financial Adviser at a time to suit you.
- Loved ones: Talk to your family and encourage them to be present when we make our home visit consultation.
- First Consultation: At your first consultation we can discuss the options and find out more information about your circumstances to establish if Equity Release is the right option for you.
- Choosing the right plan: Our Financial Adviser will search the market to find the most suitable plan for you.
- Second Consultation: Our Financial Adviser will return to your home to discuss the plans found, you will be provided with a personal illustration and you can ask more questions.
- Paperwork: If you choose to go ahead our Financial Adviser will submit your application to the provide and your property will then be valued by an independent surveyor
- Offer: The provider will issue an offer, you can discuss the full terms and conditions with our Financial Advisor.
- Legal work: Independent solicitors acting on your behalf will cover the legal work.
- Timescales: Although not guaranteed it is usually an 8-12 week process from application to completion.
- Money released: Time to make those plans reality!