Some questions that you need to satisfy your self you have answered to the best of your ability as there are alternatives to using Equity Release.
You may wish to consider one possibility that is often overlooked as it hasn’t been widely publicised. How about getting an Equity Release provider to pay towards the purchase price of the property you want to move into? In so doing, you will tie up less of your own money to meet the agreed purchase price.
Because of an ageing population, many people are put off the idea of starting an equity release plan from age 55 onwards. One of the strongest arguments against considering equity release is that the interest rolls up and eats away at the capital. But now there is a sensible yet clever alternative.
Let me be the first to explain how and why they fit together. Life planning is the art of uncovering what you really want to achieve in your lifetime. So if you are considering taking money from your house, you will consider the following points…. How much can you take out? Will this be sufficient? […]
The assumption is often made that when people reach retirement age, if they are to move home it will be to downsize to a smaller and typically lower value property. For many homeowners in later life moving home is a lifestyle choice, for example moving nearer to relatives or to a bungalow near the sea. Often this involves moving to a more expensive property. Many potential customers would like to make this lifestyle change but do not have sufficient capital to make the “trade up”.
Question? “If I could show you a plan that will pay you 100% current market value less a one-off payment which will cover your rent to live in the property for as long as you would like…… Would you be interested?
Sheltered Accomodation / Retirement Flat An exciting new development in Equity Release. It may be possible to obtain funds while living in Sheltered Accomodation. However, it depends on the lease. Call 0800 3112027 to discover if you can get a cash withdrawal while living in Sheltered Accomodation or a Retirement Flat.
In the worst example one adviser suggested that our 75-year-old researcher – who was looking for a bit of money to carry out essential maintenance – instead take out significantly more and invest it. This is incredibly poor advice as investment returns after tax are unlikely to beat the borrowing costs of releasing more equity.
Suppose you have borrowed money from a Bank and they want the loan returned because you have reached a certain age and you don’t have the capital to repay them. You may have the capital but if you repay them – it will create a deep feeling of worry?
“The Retirement Mortgage” is an Interest Only lifetime mortgage intended to fill the gap between residential mortgages and equity release, so if prospective borrowers benefit from a reasonable level of pension income then it can provide a more flexible alternative to a traditional roll-up lifetime mortgage.