Archive for the ‘Advice’ Category
Monday, December 20th, 2010
Should you have already purchased your annuity from your pension scheme, then unless it is indexed linked by inflation you may now be feeling that has lost some of its purchasing power over the years. With inflationary fears currently still persisting, even with the recent downturn in the UK economy, then people are looking at extra ways to enhance their retirement income & lifestyle.
Obviously, once a pension has been purchased then it is fixed for life, so alternative sources of boosting one’s retirement income need to be sourced.
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So how can equity release assist?
Equity release allows you to enjoy the monetary benefits of your assets without having to sell them. This is one of the ways to use the equity locked in your property. Equity release schemes are available only for retired individuals over the age of 55.
There are two types of equity release schemes: Lifetime mortgages and home reversion schemes. Consider the benefits of these two and choose one that suits your requirements. It is prudent to opt for independent financial advice when dealing with equity release schemes.
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Lifetime mortgage schemes: These schemes are designed for property owners. They help in gaining money by mortgaging the property. A major benefit of opting for this scheme is that you still remain the sole owner of your property. Individuals over 55 years of age are eligible for lifetime mortgage schemes.
One type of lifetime mortgage scheme called drawdown equity release could be a solution here. The lender will calculate an overall maximum that can be released & from this the applicant can withdraw this reserve facility in small amounts at times to suit one’s requirements. This could be monthly, half yearly or even annually, but the choice is yours. Therefore, by opting for a drawdown scheme could boost your retirement finances with flexibility.
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Reversion schemes: Contrary to lifetime mortgage schemes, home reversion schemes require you to sell a part or all of your property to enjoy monetary benefits. A lump sum from one of these schemes can be used to purchase an annuity which could therefore supplement any existing pension scheme.
Dependent on the lump sum raised, age & health & options built into the annuity would determine the regular income to be paid by the annuity provider. Always shop around or seek the advice of an independent financial adviser to ensure the maximum possible income is achieved.
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Eligibility
You should be the sole owner of your property prior to mortgaging it. The aforementioned schemes have different age requirements. While lifetime mortgage schemes require an individual to be 55 years of age, home reversion schemes need the individual to be 65 years of age to qualify. Your property will be surveyed and you can qualify for these schemes only if it is worth £60,000 or more.
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Equity Release Supermarket have independent financial advisers that can provide advice on both equity release & how to maximise your retirement income with annuities & pensions.
Contact us on freephone 0800 678 5159 if you wish to discuss whether any of these products can help your retirement financially.
e: mark@equityreleasesupermarket.co.uk
w: http://www.equityreleasesupermarket.co.uk
Tags: drawdown, equity release, equity release schemes, home reversion, home reversion schemes, lifetime mortgage schemes, lifetime mortgages, pension annuity, purchased life annuity
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Sunday, October 17th, 2010
If you are 55 or over and experiencing financial problems then equity release schemes might be the solution for you. To qualify for equity release, you have to own a home and have little or no mortgage. The main aim of equity release schemes is to provide money against the value of your property. One of the main advantages about equity release is that it allows you to continue living in your home.
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Other benefits of all equity release schemes that Equity Release Supermarket recommend are:-
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No Negative equity guarantee
Equity release schemes should always offer a ‘no negative equity guarantee‘. This feature is included at no extra cost by the lender. All equity release plans we recommend are members of SHIP (Safe Home Income Plans) therefore the no negative equity guarantee will always be offered by ourselves.
The guarantee means that your debt can never be greater than the value of your property. Therefore, worst case scenario would be that on eventual sale of the property, if the equity release has surpassed the value of the house, then the lender can only request the sale price of the house, & no more.
This ensures that you can never pass a debt onto your children, which gives much peace of mind to equity release planholders.
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No restriction on how you spend the funds
You have the ability to spend the equity release monies on whatever fulfills your financial requirements.
Today, different types of equity release schemes have been introduced by lenders. Some of these schemes allow you to borrow 100% of the equity in your home which an provide substantial funds to spend your money on.
As the equity release money is tax-free, you can use it in different ways such as:
- Home improvements
- Pay off outstanding debts including mortgages
- Holidays
- Gifts to children
- New car
- Lifestyle changes
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If you want to know how much equity you can release against your home then use Equity Release Supermarket’s online calculator.
Alternatively you can find one of their specialist independent financial advisers who will guide you through the process by clicking here.
Tags: equity release, Equity Release Adviser, Equity release calculator, equity release schemes
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Saturday, October 16th, 2010
Equity release schemes are perfect for elderly people who are looking for ways to generate funds during their retirement.
The less common home reversion equity release schemes allows you to sell a part or your entire property to the reversion company. In return, you can get a guaranteed lifetime lease and tax-free money with no monthly repayments.
You can continue to reside in your property for as long as you want. Home reversion schemes also guarantee an inheritance to your beneficiaries. It is a scheme where you sell a percentage or all of your property to the reversion company while retaining the rights to live rent free in your home for the rest of your life. The equity received can either be paid out as a monthly income, lump sum or a combination of both.
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Some important benefits of home reversion schemes
As a home reversion equity release scheme is not actually a loan, there is no need to pay off any interest. Other equity release schemes such as lifetime mortgages not only charge you interest, but also reduce the inheritance for your beneficiaries which in extreme cases can erode ALL the equity in the property. This means that the interest amount can grow considerably over the years; in some cases it may exceed the value of your property.
This cannot happen with a home reversion scheme unless you select to sell 100% of the property in the first place.
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- Benefit from rise in property values
Unless you have sold your entire property, you can get your share as the property value increases.Therefore, if you have sold 50% of the property value, you will still retain any growth in your share of the remaining 50% of the property.
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- Release more equity compared to lifetime mortgages
With home reversion schemes, you can release more cash than lifetime mortgages allow you to. This can be advantageous should you have no children to leave your estate to. In addition home reversion schemes can have an impaired life facility built into the scheme. Therefore, if your health is poor or have an impaired life condition should as high blood pressure or you have suffered a heart attack, stroke or cancer then the home reversion company can give you a higher lump sum than otherwise have been. This would be due to the fact that they do not anticipate your life expectancy to be as high as the average & thus have actuarily decided they can afford to offer a greater lump sum.
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To request further information on home reversion schemes & a home reversion quote, please contact the Equity Release Supermarket team on 0800 783 9652.
Tags: home reversion, home reversion schemes, impaired life, No negative equity guarantee
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Thursday, October 14th, 2010
Signs that the equity release market is beginning to spark into life again, can be evidenced by the re-emergence of a former lender in the market.
more2life have joined forces with annuity specialist Partnership assurance to re-launch their impaired life roll-up lifetime mortgage plan.
Incorporating an impaired life facility & protected equity guarantee, the more2life equity release plan can be seen to be opening a niche market for itself. The impaired life facility means that depending on health & lifestyle, a higher than normal tax free lump sum can be achieved, should serious health issues be present.
The more2life equity release plan has been designed with three scenario’s in mind: -
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- Enhanced plus – industry leading maximum release, impaired life product
- Enhanced protected – impaired life plan with ‘protected equity guarantee’
- Protected plan – older applicants looking for a ‘protected equity guarantee’
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Pitching the enhanced plus plan at the maximum release end of the market means that should the applicant qualify on medical grounds, they would have the highest equity release lump sum currently available. This would even surpass the current Aviva Lump Sum Max product, although this would be at the expense of a higher interest rate with more2life.
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The following percentages are the maximum releases available on the Enhanced Plus: -
Age 55 23%
Age 60 28%
Age 65 33%
Age 70 38%
Age 80 48%
Age 90+ 54%
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For example, an applicant aged 65 with a property valuation of £250,000 & meeting the underwriting criteria, can release a maximum of £82,500 on the enhanced plus plan.
The interest rate for this product will be 7.49% monthly.
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The second product – ‘enhanced protected plan‘ is also based on health & lifestyle grounds & again can provide an enhanced lump sum. However, to qualify for this equity release scheme the health situation will not be a serious as the enhanced plus. The interest rate for this plan is lower at 6.99% monthly.
Another feature of this plan is the ‘protected equity guarantee’ which is included & guarantees a percentage of the property for the children/beneficiaries on the eventual sale of the property.
The guarantee works as follows: -
Should the overall facility available be £80,000, yet only £40,000 is taken, then 50% of the final sale value will be protected on sale.
This can be an essential tool for applicants who wish to ensure that a guaranteed inheritance is passed onto their children.
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The final option is the ‘protected plan’ which has no impaired life facility , but does include the protected equity guarantee. The interest rate is the same as the enhanced protected at 6.99% monthly.
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In summary, depending on whether the maximum lump sum is being sourced, or one is looking to take equity release but still guaranteeing an inheritance for their children, then one of the three more2life equity release schemes can benefit.
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If any of these more2life plans would be of interest to you, please ring the Equity Release Supermarket team on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
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To request a quote on the more2life enhanced plans please click here.
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Tags: equity release, equity release schemes, impaired life, inheritance protection, lifetime mortgages, maximum lump sum, more2life, protected equity guarantee, Roll up lifetime mortgage
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Wednesday, October 13th, 2010
If you want to improve your lifestyle or repay outstanding debts and do not have enough cash then consider the potential of an equity release scheme. Homeowners who are over 55 and have little or no mortgage can release money against the value of their home. Due to different needs, different equity release schemes have been introduced.
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Lifetime mortgages and home reversion plans are two popular types of equity release schemes.
Lifetime mortgages are further divided into two subtypes:
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Roll-up lifetime mortgages – This equity release scheme is preferred by many people because they do not have to pay any interest. Instead the interest is added to the original balance & compounded year-on-year for the rest of one’s life.
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Interest-only lifetime mortgages – If you do not want your debt to build up then an interest-only lifetime mortgage can be the perfect option for you. Unlike other equity release schemes, this scheme allows you to pay off the monthly interest to the lender. By opting for the interest-only option, you can preserve more money for the future.The balance of the interest only mortgage scheme will therefore remain level for the rest of the term of the mortgage. Such schemes available include the exclusive deal Equity Release Supermarket have available with the Halifax.
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The Halifax Retirement Home Plan is available to those having already retired with a good disposable income with which they can service the monthly payments. The Halifax Retirement Home Plan is not available via the Halifax branch network as only lifetime mortgage advisers with the appropriate licence can advise on this product.
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Whether you choose a roll-up or an interest-only mortgage you can release the equity tied up in your property to provide the tax free lump sum you require.
You can use the tax-free money to spend as you wish including buying a new car, a second home or to go on a luxury cruise; the list is endless.
If you have decided to opt for equity release schemes then it is recommended that you receive advice from an equity release adviser who will guide you to the best equity release plan & guide you through the equity release process.
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To find a local Equity Release Supermarket financial adviser near to you click here.
Tags: equity release, Equity Release Adviser, equity release schemes, Halifax Retirement Home Plan, interest only mortgage, lifetime mortgage schemes, lifetime mortgages
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Monday, October 11th, 2010
Equity release schemes are beneficial to all those retired individuals who want to maintain their standard of living even after retirement.
What is equity release?
The term ‘Equity’ can be defined as the value of your home less any outstanding debts or mortgages. This equity that is tied up in your property can be released as cash from your property with an equity release scheme. You can spend this money on anything you wish with the mosyt popular being: -
- Debt consolidation such as repaing a mortgage, loan or credit cards
- Home improvements such as new windows, conservatory decorating etc
- Gifting funds to the children – this could be for getting them on the property ladder or assist their business
- Holidays such as foreign cruises or days out
- Help with everyday expenses & improve the daily quality of your retirement
- To pay for an impending medical operation.
With all equity release schemes you do not have to make any payments till your property is sold after you die or when you move into long-term care. The best thing is that you remain the owner of your home and enjoy attractive cash benefits.
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How do you qualify for an equity release scheme?
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You need to meet certain criteria to be eligible for an equity release scheme.
They are:
• You should be between 55 and 95 years of age
• You should be the owner of your property
• The minimum value of your house should be £70,000
• You should have little or preferably no outstanding mortgages. All mortgages should be cleared when the equity release scheme is started
• Your house should be freehold or leasehold and the remaining lease period should be at least 75 years.
• The house should have been constructed using standard building materials.
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You should consult experienced indendent equity release advisers to get the right advice on equity release schemes. A professional can tell you whether the scheme is appropriate for you or not. Read all the documents carefully before signing. Equity release is probably the biggest financial decision you will ever take.
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If you have a finnacial obligation & feel equity release could be the solution, speak to the experts by contacting Equity Release Supermarket on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk.
Tags: equity release, Equity Release Adviser, equity release schemes, equity release uses
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Tuesday, September 28th, 2010
People who eventually retire from their work look forward to spending the rest of their lives comfortably. For these retired individuals, retirement should be a period of less worry & no work. In effect they will have more free time and can therefore concentrate on the happiness of seeing their family grow up.
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However, unless there has been many years of retiremnent planning, these dreams of a relaxing & an enjoyable retirement can suddenly turn sour.
With more time to spend money, retirement is also known as the ‘longest holiday of your life‘. You will be aware that holiday periods are probably the most expensive periods of life & are usually planned for a year in advance. Therefore, consider the holiday you will be entering, once you retire & the lengthy duration thereof.
The average person will retire between 60-65. Life expectancies are now reaching into the late 80′s; therefore planning for this period should be all relative.
So, considering most people are not as disciplined at planning for their retirement as they are with their annual holidays, how can one rectify this issue once retirement is reached & they have insufficient provision to live on?
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Well one of the solutions to this could be via equity release schemes which can provide a way to gain cash benefits without having to sell off the property.
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Making use of the increase in realty prices
Real estate prices have increased significantly over the past few decades. By optimising these increases & climbing onto the property ladder, can pay dividends in the long run for your retirement
In the forthcoming years, house prices should begin to rise again. In such a scenario, the home owner can further capitalise on the equity locked inside the house without having to sell the property. Having a constant income flow can ensure that the retired population can lead a high quality of life, even when their regular income has fallen sharply.
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How can equity release help?
By continuing to maintain a rung on the property ladder, once retirement age is attained then it can be time to cash in on the equity built in the property during one’s period of employment. There are several ways of achieving this if a top- up to the state pesnion is required. Whether you are in need of income or a capital lump sum, equity release schemes can assist assuming certain criteria is met; a property value over £70,000 & a minimum age of 55. Therefore, even if early retirement has been taken for health or unemployment reasons there can still be financial help available with equity release.
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Distinguishing features of equity release schemes
One of the main features of an equity release scheme is that the homeowner can retain 100% ownership of the home and at the same time can continue taking income or capital from the higher value of their home. The money which is released can be paid back to the equity release company at anytime in the future (subject to possible early repayment charges).
However, this is usually on the death of the property owner or them moving into long term care. Equity release is particularly beneficial to those who do not have family members to look after and do not need to pass on their property to the next generation.
The benefits of equity release schemes are many. Firstly the cash amount that is received by the owner of the house is exempt from income tax. Thus, the retired individual can continue taking equity from the property in order to supplement their lifestyle & thus make it the best holiday of their lives!
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For further information on equity release & the current equity release schemes in the market, contact the equity release team on 0800 783 9652.
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Tags: equity release, equity release schemes, lifetime mortgage schemes, lifetime mortgages, retirement
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Tuesday, September 21st, 2010
You maybe aware of the term equity release? Equity release is becoming more commonplace with people over the age of 55. However, some individuals are still unaware about the features of these particular schemes.
The following are frequently asked questions appertaining to equity release:
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1. What is equity release?
It is a mortgage scheme that is designed for the benefit of retired or older citizens. Equity is best described as the value of the home devoid of any outstanding mortgage. With the equity release scheme, you can release some amount of equity which is tied up in your property, in the form of a tax free lump sum.
2. Why should I opt for equity release?
Equity release schemes will provide you with accessible cash. You might receive this as a lump sum amount or in a monthly installment format. People have the freedom of spending their money in any way they want or choose. For instance, you are free to spend the money on holidays or paying off debts. In addition, you have the choice of staying in your home for the rest of your life.
3. Will I require professional advice?
If you have decided to opt for this particular scheme then it is advisable that you get professional advice prior to making major decisions. Contact a professional and skilled advisor who has been in this field for a few years. Such advisors will guide you through the different equity options and make recommendations accordingly. The equity release advisor will also explain the entire process in simple understandable terms.
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Consider advice from Equity Release Supermarket to discuss your options on the many different equity release schemes in order to secure your future.
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Thursday, September 16th, 2010
Equity release schemes are becoming a great way to release the cash benefits from the value of your home. You can enjoy the benefits of having built such equity, while still maintaining ownership of your property.
You have two ways to benefit from equity release schemes. The first method is called a lifetime mortgage which involves taking a secured loan on your property and the second type of equity release is the home reversion scheme. This involves selling of a portion of your property to get valuable funds.
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People who want to guarantee leaving a percentage of their property to their children or other beneficiaries will prefer the home reversion scheme.The reason for this is that having sold a percentage of the value of the house to the home reversion company, the homeowner will still retain the remaining fixed percentage in their name also. They are issued with a lifetime tenancy which means they have the right to remain at the property for the rest of their life, rent free. This percentage they own will continue until the house is eventually sold.
For example, if the homeowner sold 60% of the value of the property to the home reversion company, they themselves would retain the remaining 40%. Therefore, upon eventual sale of the property, the beneficiaries would sill receive 40% of the final sale value of the home, guaranteed. This way they can easily retain their most valuable assets. Other reasons for opting for the home reversion scheme is that if one has no beneficiaries & even no significant heirs to leave their inheritance to, may wish to sell 100% of the value of their property in order to take the maximum possible whilst they are still alive. This may seem excessive, but rather than leaving their estate to people who they feel should not benefit, they can enjoy the fruits of their working life & the resulting equity they have built.
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Features of equity release schemes
Staying in your home
One of the biggest advantages of equity release schemes is that you can stay in your own home while enjoying financial benefits from it. Selling your old property and moving to a new, unfamiliar area can be emotionally as well as physically trying. One may not want to separate from friends and other family members who might be staying close to them. You may still need that additional room to entertain family & friends & when the grandchildren stay over in that extra bedroom you have currently, that may not be there if you downsize.
There are also the costs involved in moving such as solicitors fees, removal costs, stamp duty & the emotional price of up-rooting from somewhere that you have spent the majority of your life bringing up your children & other family issues. Equity Release can help you maintain your independence & the right to remain in the family home.
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Live a life of luxury
People who take equity release schemes are able to fulfil their dreams & retire & relax. Some might go for holidays to foreign and exotic locations, while others may purchase a brand new car or carry out home improvements including redecoration of their home. This can be jobs that have been put of during their working lives for financial reasons, or even modifications to the property due to disability reasons. Also, upgrading the home with equity release including improvements such as new double glazing, loft & cavity wall insulation can assist on saving on your fuel bills. Therefore, some investment in the property can alleviate finances elsewhere thus paying dividends. For some people, it is simply pleasurable spending money on their family by way of gifting to the children now, rather than later and seeing them enjoy bringing up their grandchildren without the financial constraints that today’s society is imposing currently.
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Guaranteed returns
Almost all equity release schemes offer the benefit of having guarantees throughout your life. This can be the guaranteed interest rates for life on the lifetime mortgage scheme. There is also the no negative equity guarantee that the lifetime mortgage schemes also have , ensuring that any equity release scheme is adhering to Safe Home Income Plan (SHIP) regulations. This no negative equity guarantee ensures that the beneficiaries cannot ever incur any debt over & above the property value once the equity release scheme mortgage holders have died or moved into long term care.
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Before going ahead with getting an equity release scheme, you should seek professional and impartial advice from the Equity Release Supermarket experts and read all documents carefully before signing.
Contact the team now on freephone 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
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Tuesday, September 7th, 2010
Equity release is different form of finance to the usual bank loans and mortgages. The main reason for this is because NO monthly payments are required & also as it provides money against the value of your home with the allowance of you continuing live in it. If you are a homeowner and over 55, then equity release is an ideal option for you. With the help of equity release schemes, you can financially secure your retirement.
By opting for equity release, you can potentially receive a lump sum or regular income. To qualify for equity release, the value of your home must be over £70,000 & located in the United Kingdom. The countries within the UK vary between the equity release companies. However, they will all offer equity release in England & Wales, whilst some will only lend in Scotland & Northern Ireland. Again, some will offer equity release schemes on the Isle of Wight & only some on the Isle of Man, therefore to ascertain availability please ring freephone 0800 783 9652.
Due to different requirements, equity release schemes have been introduced onto the market. A home reversion plan is one the 2nd most popular scheme and is offered currently by four financial institutions within SHIP.
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Home reversion plans
Under a home reversion plan, homeowners can release money against the value of their property without worrying about monthly repayments. By opting for home reversion plans, you can sell a part or all of your property. You (& any partner) need to be a minimum age of 65. Better terms for the home reversion schemes are obtained once you have both surpassed age 70.
Even after selling part of the property, you can continue living there but the legal owner will be yourself & the financial institution. If you decide to sell 100% of the property value then the reversion company will have sole ownertship of the property, leaving no inheritance for any beneficiaries.
Different applicants will be eligible to release different amounts of money against their home. One of the major factors which affects the equity is the age of the homeowners. Also, the value of the property plays an important role.It is therefore a conbination of these factors that govern the amount you can release. Another important influence is health as there are now equity release schemes that will consider impaired life applications.
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Other than home reversion plans, you can also opt for lifetime mortgages or home income plans to release money against your property. Contact an independent equity release specialist such as Equity Release Supermarket who with their experience will guide you in choosing an appropriate equity release scheme.
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To obtain the services of one of the Equity Release Supermarket team email admin@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, home reversion schemes, impaired life, income plans, lifetime mortgages
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