A guide to Equity Release Are you thinking of Equity Release? Then you can trust us to help choose the best plan for you Nationwide Service | All Lenders Available | Personal Visits Freephone 0800 612 6755
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What is Equity Release...
First of all, it would probably be easier if we defined what the word, “Equity” means. If you don’t have a mortgage, then it is the value of your property. If you do have a mortgage, then it is what you would have left over, once your mortgage had been repaid. Equity release looks at ways where you can get cash now against the value of your property. We will go into the details of how this can be achieved a little later, but first, let’s look at how…
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Equity Release could help you... There are many people in the UK today, maybe like you, who have bought their own home and whilst they may not have the bank balance to do the things they want, their wealth is tied up in the property that they live in. Equity release can help you if you wish to
• Pay of your interest free mortgage • Go on that holiday of a lifetime • Make gifts to the children • Increase their retirement income • Pay for an operation • Pay for long term care in your home
• Do some home improvements • Help out the family • Pay for health care • Buy a new car • Do some inhertiance tax planning • Repay an existing mortgage
You have probably worked hard all of your life and at the stage where it is important that you can trust the people that are going to make equity release happen for you. So let us look at why…
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…you should choose “The Right Equity Release?” If you think it makes sense to use someone who specialises in all Equity Release plans, someone who researches the whole of the market and who has access to exclusive deals and offers to give you the widest choice possible, then invite us into the comfort of your own home, where our qualified advisers will provide you with independent and regulated advice, on a no sale, no fee basis, designed to give you the peace of mind you want. We will also offer advice over the phone and as part of our commitment to you, we will explore other options in addition to equity release, we will consider any of your benefit entitlements and whether there would be any effect on them. If we believe that equity release is not right for you, we will let you know right away. In addition, we would encourage you to invite your friends and/or family members to join you when we come and see you. For many, an Equity Release Scheme can be a complex legal arrangement, so we want to make sure that you are comfortable with what you are doing and we will explain things to you in easy to understand language. In addition, we will ensure that you will receive expert independent legal advice as part of the agreement process, so that you understand the features and risks and are kept fully informed throughout.
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What can you expect from your adviser? They will visit you in your own home, talk you simply through the process, cover all options available to you, answer all of your questions and give you honest, impartial advice on what is best for you.
What some of our customers say
Mr & Mrs Mclean
Now our dreams of extending our home and buying those extras that make our lives more comfortable in our retirement have come true. We have no hesitation in recommending The Right Equity Release to others.
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Mrs & Mr Burns We were very impressed by how swiftly our application was processed and also how you explained in detail the various plans to choose from without pressuring us in any way. We would, without hesitation, recommend you to anyone seeking to raise finance in this way.
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What are your options? Lifetime Mortgage This is where you take out a loan that is secured on your property. The lifetime mortgage is repaid from the proceeds of the sale of your property on death or if you have to enter long term care. A fixed interest is added to the loan either monthly or annually, although you do have the option to pay the interest, should you not wish for the amount owed, to increase as a result of compound interest. You can take smaller sums over a period of time and you only incur interest on the money you take.
Home Reversion Plan This is where you sell all or part of your home to a Home Reversion company. Whilst you will no longer own your home, or the proportion sold, you can continue to live in your home for as long as you wish (subject to the loan providers terms and conditions). When you die or enter long term care, your home is sold and any unsold percentage will be passed back to your estate, subject to the costs of selling the property, which may be deducted prior to the balance being paid to the estate.
Frequently Asked Questions How do I know whether I am eligible? If you are over 55, own your own home and have little or no mortgage, then contact us. We will review your options, as it may be that depending on the type of property and your age, certain products may not be available.
How do I know that everything is going to be done properly? We only deal with equity release providers who are authorised by the Financial Conduct Authority (FCA). These are the regulator for financial services firms and financial markets in the UK. You can learn more about them at www.fca.org.uk. Also, our recommended plans comply with the Equity Release Council Code of Conduct, who are the industry body for the equity release sector. You can learn more about them at www.equityreleasecouncil.com.
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Will I be kicked out of my home at any point? Equity release is one way for you to release cash from your home without having to move out. You will continue to own and live in your own home. This is however, subject to the loan providers terms and conditions and we will explain any risks to you before you proceed.
Do I have to draw out all of the money in one go, what if I want to drawdown at different stages? The tax-free cash can be released as a lump sum, as an income or as a combination of both. We will create a plan that will best suit your needs.
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How much can you release? The maximum amount you can release is based upon your age and the value of your property. Amounts vary between different equity release providers and a partial or full sale under a home reversion plan would only achieve a percentage of the property value. Home reversion plans can release greater amounts and if you smoke, or have any illness, you could release more. Contact us and we will help you calculate your release of funds potential.
I already have a lifetime mortgage, can I switch? As with standard mortgages you may be able to switch your lifetime mortgage to take advantage of falling interest rates and a better deal. A new plan may offer a reduced interest rate, potentially reduce the overall amount owed, allow an additional release of funds and provide increased flexibility. Early repayment may incur an early repayment charge, or other related charges and we will take this into account when assessing any potential savings.
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What else should I know about equity release? Some of the advantages are that disclosed adverse credit will usually not affect borrowing, no proof of income is necessary, you have flexibility to choose whether or not to make monthly payments and it is an alternative option to standard mortgages and loans. Some points to be aware of are that equity release plans are not suitable for everyone and may have an impact on age allowance, an Equity Release plan will reduce the value of your estate, an equity release could affect any current or future entitlements to means tested state benefits and although secured on your property, the loan is portable and does not prevent you from moving home. We can help to understand the features and risks. Simply ask us for your personalised illustration.
Freephone 0800 612 6755
www.therightequityrelease.com
What is your next step? We will talk through your options
We will let you know whether you qualify for equity release and establish if equity release is right for you We will advise you on how much equity you can release and how your plan will work
Email us for more information referrals@therightequityrelease.co.uk
Find out how much you can release by visiting our website
Call us to book a free no obligation appointment today
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0800 612 6755
The Right Equity Release Limited is authorised and regulated by the Financial Conduct Authority The Right Equity Release Limited, Croft House, 21A Station Road, Knowle, Solihull, B93 0HL. Registered in England and Wales. Registration Number 07166676 The availability of Equity Release is subject to criteria. Equity Release may affect your entitlement to state benefits and will reduce the value of your estate. Think carefully before securing other debts against your home. To understand the features and risks, ask for a personalised illustration. The Right Equity Release Limited does not charge up front fees. A fixed fee is only charged on completion of an Equity Release Plan. Typically this is 1.5% of the total facility or ÂŁ995 which ever is greater.
Freephone 0800 612 6755
www.therightequityrelease.com