Equity release is one of the cash-in opportunities available on the market for people aged 55 and above. In a nutshell, this is a remortgage, often times a lifetime one, of your property for which you get tax-free income, either one-off or in instalments. Although generally a good opportunity, you have to first check whether you are eligible, then weigh in all the pros and cons to see if this indeed is the right financing option for you. An equity release calculator can help you come up with a decision.
The equity release calculator will ask for your age, the value and type of your property as well as its location. Based on these parameters, you will obtain the maximum amount you can get as well as the interest rate pegged to your equity release scheme.
Before going into extensive detail, run an eligibility check. Your application is unlikely to be honoured if you are aged below 55. Of course, your chances increase if the value of your property is high, it has no encumbrances and you would prefer to set aside a low to zero percentage of your property as inheritance. Further, many providers find a property worth £75,000 and less unattractive so be prepared for a potential decline.
Type of property is also a factor, alongside with the value of property. Providers are usually interested in immovable property but not farms, in suites but not freehold flats or studios. Any movable home or houseboat would also be on the "No, thank you" list.
If you have firmly decided on equity release, make sure that you choose the right type. See the essentials of lifetime mortgage, drawdown lifetime mortgage, interest-only lifetime mortgage and the home reversion plan. They will serve you with different options as to the value and type of cash disbursement, type of interest accrual, home recovery.
Speak to a qualified expert and get all the details cleared out before signing any contract to see if equity scheme will work for you and your needs. Except having some extra money there few downsides from equity release one of each is that it might affect the value of your property.
The equity release calculator of Age Partnership will come up with a maximum amount you are to get for your particular property as well as information about the interest to be accrued over time.
With Aviva calculator, you get informed not only about the amount and interest this top equity release provider offers but also about the things to consider before committing with this particular type of financing.
Key Retirement Solutions is an independent one-stop-shop for all equity release schemes available on the market. Make sure you learn about all offers before deciding on the one for you.
You might also want to read about: Mortgage Rates
The information on this page is designed to help you understand more and make more informed choices. We do not receive any commissions, instead we are funded from companies that we advertise on our website.