Some frequently asked questions for your information:
Can we move house?
Most equity release schemes allow you to do so if the new home still meets their criteria.
What if our new house is lower priced than our existing house?
You may be required to repay some, or where the property is of a much lower value, all, of the loan and the accumulated interest, if you have a lifetime mortgage and move to a lower value property.
The plan provider will usually retain the same percentage of your new home if you have a home reversion plan, with the leftover cash from the sale of the old property being split between you and the provider.
Can I improve / enlarge my house?
You will need their approval before you go ahead, but most equity release schemes will agree to hoe improvements.
Do I have to buy another house one if I sell mine?
Equity Release Schemes are designed to end when the property is sold, so no. You simply repay the loan from the proceeds for a lifetime mortgage (or pay the percentage over to the reversion company for a home reversion plan). The rest of the sale proceeds are yours and there is no further commitment.
What happens if there is a change of ownership?
Following a marriage, divorce or remarriage, part of the equity you have released may need to be repaid, if there is a change of ownership. A new, additional owner may not have the right to stay in the property after the death of the person who took out the equity release scheme. The rules vary between different schemes, so please make sure you understand the details
Equity Release has had a bad press in the past but it can be a good solution for the right person. With the safeguards in place, such as the ‘no negative equity guarantee’ and ‘guaranteed tenure for life’ plus options such as drawing down capital on a needs basis and / or paying the interest on the mortgage, being able to leave an inheritance while having a more comfortable lifestyle is possible.
Why not call me on 0845 029 1962 or mail michael@releasequity.com for more information?