Before opting for an equity release scheme, I am sure there must be plenty of questions that you may have regarding this type of financial arrangement. You will find some of the frequently asked questions regarding equity release in this article.
Who is qualified for equity release?
People who are over and above the age of sixty years can qualify for equity release. Your partner should be over the age of fifty-five years and the value of your home should be equal to or more than seventy thousand pounds. In addition, it is also important that you do not have any outstanding mortgage. Incase you have an outstanding mortgage then you will have to repay the mortgage from the released amount.
How much money will a person be able to obtain through this kind of arrangement?
The amount that a person can obtain would depend on a number of factors such as what percentage of your home are you prepared to sell, the value of your home property and your age. Different provider will offer to different amount for your home property and this is the reason why you should seek the advice of a good and reputed independent financial adviser if you want to know about the approximate amount that your property can fetch you.
Is it possible for me to move to a new home after releasing my equity?
Yes, it is possible for you to move to a new home after releasing your equity. All the equity release schemes that are available permits you to live in your home or move to a new home. These plans do not bar you from shifting to a new location. On the other hand, you new home will require the approval of your equity release plan provider. The provider may also lay down certain terms and conditions that you will have to follow.
What if there is a change in the value of my house after some years?
Incase the value of your home property falls then you will not have to worry because you are protected by NNEG or no negative equity guarantee. You will not have to pay the provider more than the value of your home. On the other hand if the value of your home rises, you will gain unless the equity release you took was for 100% of your home’s value.
Will my offspring end up with debts?
Most definitely not! Your offspring will not end up with debts because all the equity release plans or schemes are backed with no negative equity guarantee. This means that you will not owe anything more than the value of your home property.
