You will usually qualify for an equity release scheme if:
This depends on your age, property value and the type of equity release scheme. For example, an interest only mortgage will normally allow you to raise up to 75% of the property value. A Lifetime Roll Up or Drawdown mortgage will allow you to raise between 25% and 57% of the property value however the percentage will be restricted by the youngest applicant. A Home Reversion plan would allow you to sell a share in your property of between 30% and 100% in exchange for a discounted (or non discounted) sum of money. The older you are when you take out any plan, the more you will receive. You may wish to use our equity release calculator or call us for details of what may be available to you.
Yes, however your new property will need to be approved by the equity release plan provider and they will have their own set of terms to be met.
Equity Release could affect your entitlement to state benefits. Means tested benefits such as Pension Credit, Council Tax benefit and some health benefits like free prescriptions. Capital held in savings or an increased income could affect these benefits. We will tell you if taking out an equity release scheme is likely to affect any state benefits that you receive.
If the value of your home should fall you would be protected by a ‘no negative equity’ guarantee which ensures that you would never owe more than the value of your home. If house prices rise you would benefit unless you had transferred 100% of your property under a home reversion plan.
No. Any equity release scheme that we recommend will come with a ‘no negative equity guarantee’ so you would never owe more than the value of your home.
Equity Release schemes are not designed to be repaid until the death of the last surviving borrower or exit into long term care. Early repayment charges may apply on lifetime mortgages if you repay the loan before this time. Home Reversion plans would be expensive to reverse as you would have to repay the full market value of the share of the property transferred under the scheme.
Any equity release scheme recommended by us will give you the right to live in your home for as long as you wish. This is because we only recommend equity release schemes approved by Safe Home Income Plans.
It is possible to use an equity release scheme to fund the purchase your next home, or to help fund the purchase of a second home or holiday home.
Yes it is possible to release equity from a retirement home. Equity Release schemes can only be taken on your main residence however, so it’s not usually possible to release cash from a second home, or a home outside of the UK.
Possibly. It depends on the type of equity release plan and the amount you have already released as well as the equity remaining in your property and your age. We can advise you whether a top up would be available on your existing equity release scheme or by switching your existing plan to a new equity release provider.
It normally takes between 4 and 6 weeks from the application stage to completion when you will receive your capital. Sometimes it may take longer than this. Your choice of solicitor is crucial in this respect.
Your property will be valued by an independent chartered surveyor to ascertain the true value of your property. The equity release provider will usually arrange the valuation by the surveyor.
If you have a question you would like to ask feel free to call us on 0800 773 4849 or 0208 789 2862