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| Equity Release Questions and Answers
1. How do I know if Equity Release is right for me? If you have considered all alternatives such as
moving to a smaller property and equity release still seems well worth
investigating, then it probably is but you must ensure that you seek independent
financial and legal advice to ensure that you have fully understood the
implications. As with many financial plans, equity release does not suit
everybody and has its drawbacks but it can be a very good solution provided
you have considered every option available.
This depends on your age, the property value and
the chosen provider of the equity release scheme. In general, the older
you are, the more money you can raise. 3. Will I be able to live in my home for the rest of my life? The equity release scheme should guarantee that
you and your partner will be able to continue living in your home for
the rest of your lives. 4. Will I be able to move house again? You should ensure that the equity release scheme
allows you to move and to transfer the scheme to your new property. 5. Can I change my mind after taking out an Equity Release scheme? You may want the option to cancel your equity release
scheme in the future (for example if you expect to receive an inheritance
in a few years time). You can usually pay off a lifetime mortgage early,
although you should check for any early repayment charges. Some Home Reversion
schemes however, cannot be cancelled.
With regard to lifetime mortgages and certain
Home Reversion schemes, if property
values rise, the homeowner’s estate
benefits after taking account of the amount borrowed and the interest
accumulated. If property values fall, a smaller amount will be left.
However, should the property value drop below the balance of the mortgage, the lender’s “no negative equity“ guarantee will
protect the estate from any further liability. |
Links
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EquityReleaseIFA.com
is an Introducer to G&G Financial Services Ltd. which is authorised and
regulated by the Financial Services Authority.
The Financial Services Authority does not regulate Inheritance Tax Planning,
some aspects of Protection and some forms of mortgage.
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