Posts Tagged ‘equity release’
Wednesday, August 11th, 2010
After retirement, life can be quite difficult as you may not be able to spend with the same comfort and ease as you did during your working life.
Thus, you need to look for a source that can offer financial protection to you during your old age. Equity release schemes help the elderly to spend a luxurious and comfortable life after their retirement.
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Some facts about equity release schemes
Stability
Mortgage equity release schemes allow homeowners to unlock the equity that they have built in their homes. Homeowners can opt for a lump sum or monthly payment option, depending on their requirements.
One can even get a combination of both. The best part about equity release schemes is that the homeowner can continue to stay in their property.
Additionally, all schemes that Equity Release Supermarket recommend have the ‘no negative equity‘ guarantee built in at no extra cost. These schemes must have this built within if they are to be allowed to be members of SHIP (Safe Home Income Plans).
The no negative equity guarantee ensures that the beneficiaries cannot be left with any debt over & above the valuation of the property. Therefore, should the equity release balance be higher then the sale of the property, then only this value can be retained by the equity release company.
This can be very reassuring from the beneficiaries point of view.
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Value of the property
There are certain factors that influence the decision of lenders. The size and value of the property are important factors that lenders consider when offering equity release loans. If your property is in a good and well-maintained condition, lenders are more to make an equity release offer in return.
However, there maybe instances when following valuation, certain conditions could be placed upon within the equity release offer document.
These would usually be classed as essential repairs & the following could be main examples: -
- Damp & timber issues
- Electrical sub-standards
- Roof
- Wall ties
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Repayment
The amount that equity release companies offer is repaid by selling the property after the borrower passes away or moves into long term care. The amount recovered after selling the property is used to repay the equity release debt including any interest that is built up. If the amount recovered is more than the value of property, a share of the amount is given to the relatives of the borrower in accordance with their Will.
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If you are above 55, retired and looking for a solution to generate income, equity release is certainly one of the best options to consider.
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For further information on issues regarding property valuations & whether equity release could be made available, please contact Mark on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, No negative equity guarantee, valuation
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Wednesday, August 11th, 2010
Equity release schemes are means that allow you to get access to the equity that you have created in your home without any need for selling your property. It is a financial tool that is great for people over 55 years of age.
With the help of equity release schemes, individuals can use that money they have invested in their home while still remaining in it.
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Who can quality for an equity release scheme?
If your age is over 55 and you have your own property, you may be eligible to take part in one of the many different equity release schemes. As the legal and financial system changes, it would be a wise move to take professional advice before opting for an equity release scheme.
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How can equity release help you?
You may be looking for a way to earn extra money for your remaining life or you may want to financially help your kids or family members, go on a holiday, etc. In such situations, an equity release scheme could be the perfect solution for your problems.
Moreover, if you are looking for the best way to create a pension with annual payments while continuing to live in your property, an equity release scheme can also be an option. Irrespective of the reason, taking professional help can make the entire process smooth.
With many people already enjoying the benefits of equity release schemes, it is certainly the best way to generate income after your retirement. The loan that you take against your property will be paid off by selling your property after your death.
Tags: equity release, equity release schemes, Financial adviser, home reversion, income plans
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Tuesday, August 10th, 2010
An equity release scheme is one of the best solutions for elderly people who want to generate income after their retirement. The option of equity release allows homeowners to unlock the equity they have built up in their property over the years. The property that you possess is usually your most expensive asset.
Most people invest their hard-earned money in to their homes. At times when you face financial troubles, especially during your old age, equity release is the perfect solution to generate extra income from your property. This scheme is only available for those who are over age 55. Maybe someone who is in receipt of a pension and hence find it difficult to afford the luxury they used to enjoy previously.
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The increasing popularity of equity release
In the recent past, equity release schemes have gained immense popularity due to the many advantages they offer. One of the most important advantages of an equity release scheme is that it enables homeowners to reside in their home without making any repayments.
With an equity release scheme, the homeowner will receive a share of the current value of their property. After the homeowner passes away, the equity release company will recover the loan amount & interest on the eventual sale of the property.
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Most equity release companies will offer you with two different options to release money against your property. You can either opt for monthly payments or get a lump sum amount. If you feel both schemes can benefit you, then you can even get a combination of both. However, if you are unable to determine the best option for you, taking professional help is the best solution.
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To find a local Equity Release Supermarket adviser near to you click here or ring freephone 0800 783 9652.
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Tags: calculator, equity release, Equity Release Adviser
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Monday, August 9th, 2010
Equity release schemes are preferred by an ever increasing number of retired homeowners, as they allow people to release tax-free cash against their property.
If you are 55 or over and own your own home then you are eligible to release some cash to boost your finances in your retired life. Home reversion plans and lifetime mortgages are the two main types of equity release schemes.
To release cash against your property, you must have little or no mortgage and the value of the property should be more than £70,000. Once you have received the lump sum of cash then you can spend it anyway you want. Compared to other loans or schemes, equity release schemes offer various benefits.
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Advantages of equity release schemes
One of the best features about equity release is that it allows you to live in your property even after selling it against the lump sum amount of cash. Also, you can transfer the equity plan to another property without paying any financial penalty. By opting for an equity release scheme, you do not have to worry about repayment as it will be done on death of the second owner or moving into long term care.
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As equity release schemes offer tax-free cash, you can spend it in different ways such as:
• Buy a second home or a car
• Repay outstanding debts
• Invest in home/garden improvement projects
• Go on a holiday
• Improve your retired lifestyle
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If you want to know the amount of cash you can release then an online equity release calculator is the best option. Once you have applied for equity release, the whole process will take around 6-8 weeks. At that point you will then receive the tax free cash & it can be paid by cheque from your solicitor or it can be sent by telegraphic transfer directly into your bank account.
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The process from application stage will require the services of an experienced equity release solictor, your independent equity release adviser & the equity release provider.
Your adviser will liaise between all parties concerned in order that the application runs smoothly & can ensure that any issues can be resolved quickly.
For these services the adviser will usually charge an advice fee which is deducted on completion of the equity release scheme. To understand the equity release process in further details including the step by step guide click here.
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Equity Release Supermarket advisers can help you calculate the amount you require & the equity release scheme that best meet your individual requirements.
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Please call freephone 0800 783 9652 to speak to an qualified adviser today
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Tags: equity release, Equity release calculator, equity release schemes, equity release solicitor
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Sunday, August 8th, 2010
If you are over 55 years of age and own your own home then you can enjoy the benefit of equity release schemes. With the help of these schemes, you can release a lump sum amount of cash against the value of your property. Some equity release schemes also allow you to get a regular income from the value of your home.
Due to different market needs, three different types of equity release schemes have been introduced in the market. These include:
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• Lifetime mortgage
• Drawdown lifetime mortgage
• Home reversion plan
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Out of these above mentioned schemes, the lifetime mortgage is preferred by almost 90% of homeowners. So if you have decided to release the value of your home then make sure that you consider the features of a lifetime mortgage scheme.
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What is a lifetime mortgage scheme?
This is one of the most popular equity release schemes because it allows homeowners to release a lump sum amount of cash against their property. The interest and released amount is repaid by selling the estate when the homeowner passes away. This means that you can enjoy the cash and live in your home for the rest of your life.
Filling in the forms and understanding the documentation to release the value of your home should be under the guidance of an equity release consultant or advisor. He/she will consider the value of your home and select the right plan for you. Once you get this tax-free cash then you can spend it in clearing your mortgage, improving your lifestyle or on home improvement projects.
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To know how much cash you can release against the value of your property, you can use an online equity release calculator - click here to see how much you can release.
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Tags: equity release, Equity release calculator, equity release schemes, lifetime mortgages
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Sunday, August 1st, 2010
A unique, yet largely unknown equity release product - the Halifax Retirement Home Plan is increasingly being recognised as the answer to a financially secure retirement for the over 60’s.
Here we explain the process which leads to identifying whether you qualify for the Halifax Retirement Home Plan.
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Unavailable through the Halifax branch network, this lifetime mortgage can only be recommended by suitably qualified lifetime mortgage advisers such as Equity Release Supermarket.
Using their experience & knowledge, they are required discuss your objectives & using their independent financial status, can research the whole of the mortgage market to find the best deal for you.
Initially, the adviser will gather all relevant information necessary to understand your current situation including: -
- applicants - age & income
- liabilities including mortgage, loans & credit cards
- mortgage requirements - amount & type of product
- credit history
This information will enable the adviser to calculate whether you will qualify for the mortgage required.
Prior to this he will provide a key facts illustration (KFI) which outlines the particular product you are looking to apply for & explains its costs & features.
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The basis of qualification initially is the Halifax Retirement Home Plan calculator, which acts as a guide as to whether the case qualifies on an affordability level.
This will take into account total incomes including: -
- State pensions
- Occupational & private pensions
- Rental income
- Pension credit
- Disability living allowance (60%)
- Carers allowance (60%)
At the same time it will also need any outstanding monthly liabilities including: -
- Mortgage & other secured loans
- Personal loans & hire purchase agreements
- Credit cards
Using this data & assuming a credit worthiness commensurate with the applicants previous repayment history, the Halifax Retirement Home Plan calculator will advise a recommended mortgage figure.
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As this product is only available to people already retired, the Halifax Retirement Home Plan will not take into account employed or self employed incomes.
The scheme is not designed for people under age 65 & having earned income.
*However, the Halifax Retirement Home Plan does have flexibility on these issues, so always check eligibility first with Equity Release Supermarket on 0800 783 9652.
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Subject to the calculator confirming sufficient capital can be raised, then the next steps can be taken…
This would involve the Equity Release Supermarket adviser completing a ‘decision in principle’ with Halifax. This is a means of ‘dipping your toe’ in the water to ascertain whether in principle the application can be acceptable to the Halifax.
Details required are name, address, income, existing liabilities, mortgage amount & the product required e.g. tracker or fixed rate?
Upon submission of this information Halifax will assess this & credit score & complete a credit check on the applicant(s).
An online decision will be made by Halifax as to whether a full application can then be completed.
If successful, then conversion from decision in principle to full application can be made.
From there the payment of any fees are made with the valuation & solicitors then being instructed by Halifax & the case can continue to successful completion.
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All processing is now undertaken on the new Halifax online mortgage application system, which provides instant feedback on case criteria. This has improved processing times.
Completion times for the Halifax Retirement Home Plan are now ranging from application to receipt of funds of between 3-4 weeks.
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If you have any further questions regarding eligibility on this or other equity release schemes, please contact Mark on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
For additional information on the Halifax Retirement Home Plan & rates available visit http://www.equityreleasesupermarket.co.uk
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Tags: Decision in principle, equity release, Halifax, Halifax mortgage calculator, Halifax Retirement Home Plan, Home Retirement Plan, interest only mortgage, lifetime mortgages, mortgages in retirement
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Thursday, July 29th, 2010
Gone are the days when you needed to sell your property to unlock the equity in it.
Equity release schemes now give you an opportunity to stay in your home while you can still financially benefit from it. You can utilise the value of your home as a means to receive cash. This can be in one lump sum payment, lump sum & drawdown payments or in the form of regular monthly instalments.
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This new income source can be used in many different ways and is becoming quite popular among people of retirement age. The increasing costs of everyday living expenses puts financial pressure on particularly the retired population.
A lack of finance in retirement can to prevent us from living comfortably on a daily basis. This is when equity release schemes can fulfil their potential in offering homeowners the perfect option to enhance their lifestyles & enjoy life.
You may want to carry out home improvements, lighten some of your financial burden or just spend some more time fulfilling leisure pursuits such as holiday breaks or even worldwide cruises. Equity release schemes enable you to live out all your dreams. The money you get from the equity release scheme can be spent in the way you want. Obviously, this is where independent equity release advice is important.
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People often want to release the maximum possible from an equity release scheme & invest the proceeds. However this invariably is not the best option.
With the lowest equity release interest rates around 6.5%, by taking a large release from the property in the current econmic climate, it would be impossible (unless excessive risk was taken) that one could obtain the same 6.5% return.
Therefore, it is not good advice to take a large tax free lump sum from an equity release scheme just for investment purposes.
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A more cost effective way of achieving this goal of increasing your income could be by a drawdown equity release scheme. This scheme would enable an overall cash facility to be provided by the lender. From this facility, an initial tax free lump sum can be withdrawn, leaving the unused facility with the equity release lender that can be drawdown over future years.
The advantage of this method is that interest is only charged on the money withdrawn; not on the remaining funds in reserve. Interest is only charged on this as & when additional funds are taken.
This reserve facility is therefore the solution to providing the income required. The funds can be withdrawn as ad hoc payments in minimum amounts of between £2000-£5000 depending on the equity release lender.
Therefore, depending on the annual income required, this amount can be withdrawn from the equity release drawdown facility meeting the income objective.
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Considerations while opting for equity release scheme
While planning to opt for an equity release loan, there are few important things you need to consider. The lender, via the legal process will first check that all your mortgage & secured loan balances are completely repaid. They will also check whether you are the owner of the property by checking the land registry records.
Moreover, a valuation of your property will also be conducted by an independent local surveyor. Your age is also a determining factor on how much equity you can obtain.
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If you want to live a stress free life after retirement, choosing an equity release scheme can be an excellent solution.
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Contact Mark on 0800 783 9652 to discuss your income options further or visit http://www.equityreleasesupermarket.co.uk
Tags: drawdown equity release, equity release, equity release schemes, income, lifetime mortgages
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Wednesday, July 28th, 2010
If you want to secure your retirement life financially then equity release should be a major consideration.
The important feature of today’s equity release schemes is that they allow you to unlock money against the value of your property without you having to move.
By opting for an equity release plan, you can get a tax free cash lump sum or you can select the regular income option. Your independent equity release adviser will guide you as to the most suitable equity release plan based on your individual requirements.
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Today, many homeowners who are above 55 years of age prefer to use an equity release scheme to boost their income. To qualify for equity release, you have to own a home with a value of more than £70,000. You should have little or no mortgage in order to qualify for these equity release schemes.
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The many features of equity release schemes
Equity release schemes are basically divided into two main types such as:
• Lifetime mortgages
• Home reversion plans
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Both the above mentioned equity release schemes allow you to get cash against the value of your home or property without you having to leave it. During the life of the equity release scheme there are no monthly payments to be made. Instead, the interest being charged is added to balance of the equity release on a yearly basis. It will therefore compound interest over the years at a fixed rate which remains the same for life.
The repayment is eventually made by selling your home when you die or move to long term care. Equity release schemes are perfect for homeowners who do not have any family as there is no as much reliance on how much equity remains at the end of the day.
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Apart from above mentioned benefits, equity release schemes also offer tax-free cash which can be used to spend as you wish. There are no restrictions on how you decide to spend the money.
This means that you can buy a car, a second home, new suite & many other home improvements. One of the most popular reasons for equity release currently is to consolidate outstanding debts which has the effect of reducing monthly outgoings & thereby increasing disposable income in retirement. Click here so see examples of how Equity Release Supermarket clients have spent their equity release funds.
However advice should always be obtained in order to establish the best way of fulfilling your requirements. There are many ways of releasing equity from your property & this is where independent financial advice from an Equity Release Supermarket adviser can save you thousands of pounds by having the choice from the full range equity release schemes.
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Call the Equity Release Supermarket team today on 0800 783 9652 or visit the market leading equity release website at http://www.equityreleasesupermarket.co.uk
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Tags: equity release, equity release schemes, Home Income Plans, Home Income Schemes, home reversion, home reversion schemes, Independent equity release advice
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Wednesday, July 28th, 2010
Would you like to have a secure and enjoyable retirement?
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If your answer is yes, then an increasingly effective option for the over 55’s is using equity release schemes.
We all have different financial needs & the more recently developed equity release schemes are designed to meet these requirements. These schemes are incorporated within the lifetime mortgage schemes and reversion plan product range.
From this selection the roll-up lifetime mortgage scheme is preferred by the majority of people.
A lifetime mortgage scheme is specially designed for homeowners who are entering retirement and want to release equity from their home as a secured loan. Under this equity release scheme, the repayment takes place on death or the client moving into long term acre.
Once you have opted for this scheme, you can continue living in the same residence for the rest of your life, even if the equity release balance become more than the value of the house. This is due to the inclusion, at no extra cost, of the no negative equity guarantee. This ensures that no debt, over & above the property value can be passed onto the beneficiaries.
Reassurance is therefore given to the children that they cannot incur debt by the actions of their parents.
This rule is a condition of all lenders that are members of the equity release trade body - SHIP (Safe Home Income Plans) who provide consumer protection in the equity release marketplace.
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In Summary
A lifetime mortgage scheme can divided into the following types.
- Roll-up lifetime mortgage
- Fixed payment lifetime mortgage
- Interest-only lifetime mortgage
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Roll-up lifetime mortgage - Under this kind of scheme, you do not have to pay any interest or repayments for rest of your life. The interests will be compunded yearly onto your actual loan amount and it will be paid when the home is sold on death or moving into long term care.
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Fixed repayment lifetime mortgage - In this scheme, there is no interest added to the actual amount but you have to payback a fixed amount when your home is sold. The scheme remains the same even if you sell your home after six months or 25 years, hence it is always important you receive independent equity release advice. This equity release is currently offered by Just Retirement.
The maximum charge that can be secured is 75% of the property value. The value of the overall facility is determined by several factors including your ge, sex, property value & your health & lifestyle situation. Click here to request further details on this unique equity release scheme.
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Interest-only lifetime mortgage - People who do not want the build up & compounding of interest can choose to make monthly repayments of interest only. Using this method, no interest is added onto your main loan as any interest generated is repaid back on a monthly basis.
Before choosing a type of lifetime mortgage, you must consider your post-retirement income and what your needs will be.
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To discuss any of the above issues please contact Mark Gregory on 0800 783 9652 or visit the Equity Release Supermarket website at http://www.equityreleasesupermarket.co.uk
Tags: Add new tag, equity release, equity release schemes, Fixed lifetime mortgage, interest only equity release, interest only mortgage, Just Retirement, lifetime mortgages, No negative equity guarantee, Roll up lifetime mortgage
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Sunday, July 25th, 2010
Equity release schemes are especially designed for older homeowners. These schemes offer a lump sum amount of money or a regular income against the value of your home. One of the best things about these schemes is that they allow you to live in your home for the rest of your life.
Another important feature about equity release schemes is that they offer a tax-free amount of money by unlocking the equity in your home. This means that you can spend the cash in any way you want without an income tax liability.
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How much money you can release against your home?
The lump sum amount of money varies from a minimum release of £10,000. The maximum release is determined by two factors: -
- Age of the youngest homeowner
- Valuation & type of property
If you want to know how much can you release as you can see the important factors are your age, house value and outstanding debt. Nowadays, most people use an online equity release calculator to know the amount they can release.
Click here to calculate your maximum release.
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Nevertheless, it is not always advisable to apply & release the maximum equity release possible.
In every equity release case, advice must be provided by a qualified equity release adviser such as Equity Release Supermarket. The reason for this is that equity release schemes are regulated by the Financial Services Authority & most lenders who offer such schemes are also members of SHIP (Safe Home Income Plans). These levels of protection are essential in guaranteeing quality advice to people over 55 years of age.
Equity Release Supermarket advisers would only recommend you take an initial amount that would be required initially for the first 12 months from application. This is to reduce the impact of the roll-up effect of the equity release scheme over the longer term. By taking the maximum release from outset & having no plans for its expenditure would only leave the excess funds languishing in a savings account. With today’s interest rates this would not be financially savvy as the rate on the equity release scheme would be 3%+ higher than that of the savings account!
A more cost effective way of releasing equity in these circumstances would be by a drawdown equity release scheme. Here a cash reserve facility is provided by the lender. From this, you can take an initial release depending on your first 12 months expenditures. The remaining reserve funds can then be withdrawn as & when demand is required.
By taking this equity release route would mean that less interest is paid as you are drawing down a smaller amount & then ad hoc smaller payments over the years.
This is much better financially for beneficiaries also as there is also potentially a lower balance thus resulting in a greater inheritance for them in the future.
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If you have decided to opt for an equity release scheme, you must consult an advisor who will help you fill in the documents. There are some factors which need to be considered before releasing the cash against the property.
These include:
- The homeowner must be over 55 years of age
- There should be little or no outstanding mortgage
- The property should be worth at least £70,000
Subject to this criteria being met then the next stages of the application process can be achieved & your equity release adviser will explain the forthcoming stages to complete the whole process.
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If you need assistance with equity release calculations, please contact Mark on 0800 783 9652 or visit the Equity Release Supermarket website by clicking here
Tags: drawdown equity release, equity release, equity release schemes, maximum release
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