| FAQ's |
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Will I qualify?A. This depends on the age of the youngest person on the title deeds & also property criteria. For lifetime mortgages you need to be over 55 & home reversions a minimum age of 65. The minimum property value acceptable in the marketplace is currently £60,000. How much should I release?A. You should only initially withdraw an amount that you have a purpose for. Remember it will cost you interest to draw more money than you need. Do not withdraw equity solely for investment purposes. If you need more cash in the future, then we can assess your needs & recommend a product that is suitable for your own circumstances. Who should I speak to?A. Being such an important decision, we suggest that you discuss matters with your family, as their inheritance will ultimately be affected. We also recommend that you seek advice from a qualified Independent Equity Release specialist such as Equity Release Supermarket. How will my property be valued?A. Your home will be surveyed by an independent valuer & this report will determine the amount available to you. The valuation will be based on similar properties in your area that have actually sold. What happens if I die or move into long term care?A. On death or moving into long term care for a single life (or 2nd life if joint borrowers) your executors will need to contact the provider. They will be responsible for repayment of the plan, which is usually by the sale of the property. This normally needs to be within 6 to 12 months. Interest will continue to be charged until the loan is repaid. Can equity release affect my state benefits? A. Equity release can affect certain means tested benefits such as pension credit, savings credit & council tax benefit. It’s therefore important that we fully understand your personal circumstances. Equity Release Supermarket’s duty of care is to fully explain any potential implications to you, before proceeding. Who owns my property?A. With a lifetime mortgage you will retain full ownership of the property. However, with a home reversion scheme you will no longer fully own the property. Nevertheless, you will have the right to remain in the property, usually rent free, for the rest of your life. What are the fees?A. Equity Release Supermarket charges no fee for your initial consultation. Our advice fee if you proceed is covered in ‘what are our fee options’ section. Additionally, lenders may charge you a valuation fee, an application fee & finally you will need to cover the cost of your own legal fees. Some of these costs may be refunded on special deals we negotiate. See the compare deals section for our exclusives. Can I still move house?A. SHIP members allow you to move to another property as long as it meets the providers lending criteria. This will be dependent on the property value & each case will be considered on an individual basis. Also, from experience some people have used lifetime mortgages to move to a more expensive property, such as a bungalow for mobility reasons. Will I have to pay tax?A. The lump sum you receive is tax free. If you invest the cash to provide an income, part or all of the income, or growth on investments may become taxable. If you are gifting monies, then you will need to contact us, as this can have implications on your estate planning. Can someone else live in the house?A. Yes. A spouse or partner to the plan will continue to live in the property even after you pass away or move into long term care. However, anyone living in the property who is not party to the plan will need to sign a waiver of occupation rights. Thereafter, in the event of death or moving into long term care, they will then need to vacate the property. What about my credit history?A. Equity release is not dependent upon repayment ability; hence a good credit history is not essential. Nevertheless, this will be dependent upon the gravity of the adverse credit & given our experience we can place your case accordingly. What if I pay off the equity release early?A. Equity release schemes are designed to only be paid back if you move into care or on when you die. This means that if the scheme is repaid in full during its term, then an early repayment charge may arise. This will be dependent on the provider. There are plans now whereby no early repayment charge exists whatsoever. Please contact us on 0800 783 9652 if you require further details on this. How much will my beneficiaries receive?A. This depends on the type of equity release selected. If you chose a home reversion scheme then your beneficiaries will receive a guaranteed percentage of the final sale price of the property. With a lifetime mortgage there are two factors that affect this. As interest is rolled up during your lifetime, the final balance is determined by how long you live. Secondly, the property’s final value is important. Therefore, on repayment your beneficiaries will receive the eventual sale price, less the balance of the lifetime mortgage. This could reduce, possibly to nothing, if your house value does not increase sufficiently. However, under SHIP rules you are guaranteed not to leave a debt to your beneficiaries due to inclusion of the no negative equity guarantee. If I have an existing equity release, can I borrow more?A. Possibly. This will depend on your scheme & how your balance & property value has increased since inception. We will ascertain whether it is best to top-up your existing scheme or transfer to a new provider. This may be to release further funds or even achieve a lower interest rate than your previous scheme, if it was taken out many years ago. This advice can potentially save thousands of pounds for your estate over the long term. Why is it important I obtain Independent advice?A. We recognize this is an important decision for yourself & your beneficiaries. Therefore, it is essential that your situation is evaluated & the best product sourced for you. Only an Independent Equity Release specialist such as Equity Release Supermarket, who research the whole of the market, can offer this & give advice on any scheme in the marketplace. 'the complete equity release service'
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