Equity Release Crawley - Lifetime Mortgage Near Me

Lifetime Mortgage & General Equity Release Advice in Crawley
Reviewed by Tom Philips

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Equity release in Crawley is a tried and tested way of pensioners gaining access to the cash that is tied up inside their home.

Many retirees and pensioners get to retirement age and simply don’t have enough money to retire comfortably. This is where equity release comes in.

Equity release allows those aged 55 or over the chance to release the equity from their home, without ever having to move out or downsize their property.

You don’t have to repay a penny of the loan until after you pass away or move into a care home for health reasons.

You only repay the loan once you have passed away or move into care, where your house will be sold and the proceeds from the sale of this house will pay off the loan, hopefully in full.

Remember, as with any type of loan, you will be charged interest on your equity release loan. This interest will continue for as long as you live, until the loan ends.

As this interest continues for the complete duration of your loan, it will quickly compound.

Compound interest is essentially interest on interest, meaning that your initial loan amount will increase year on year [1].

Your loan, including any interest, will need to be repaid using the proceeds of the sale of the house.

Your house should have increased in value enough to cover the complete loan amount plus the compound interest.

If it does not, then you and your family will be covered by the no negative equity guarantee.

The no negative equity guarantee ensures that even if the proceeds from the sale of the house do not cover the loan amount, then your lender will step in to pay the difference.

Your family or next of kin(s) will never be responsible for paying off a penny of your equity release loan.

You can spend your equity release funds on a long list of things, including home renovation plans, your grandchild’s further education or a nice long, once in a lifetime holiday for your family.

When it comes to equity release in Crawley, there are two main types of loans. These are known as lifetime mortgages or home reversion plans.

Lifetime mortgages are the most popular type of equity release in Crawley.

With lifetime mortgages, you will remain the sole owner of your property, and will be able to spend your equity release loan however you want to [1].

Home reversion plans, which are the second most popular type of equity release in Crawley involve selling a percentage of your home to a lender in exchange for your equity.

You can sell between 10% and 90% of the value of your home to a lender. The more you release, the more money you will receive.

It is important to understand that with home reversion plans, even though you have sold a percentage of your home to a lender, you will still get to remain living in your home for as long as you want to.

The equity release industry is more regulated now more than ever. This means that the industry is fair, honest and transparent.

All lenders and solicitors should be members of the Equity Release Council and monitored by the Financial Conduct Authority.

This means that all players, including advisers and solicitors should be acting in the best interests of their clients.

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How to release equity from your home

If you are interested in releasing equity from your home, then you will first need to contact an equity release adviser.

They will be able to educate you on all things equity release, but will never put any pressure on you to release money unless you are sure that you want to.

Opting for equity release in Crawley will always be your decision and no adviser ever has the right to put any pressure on you [2].

If you decide that equity release in Crawley is for you, then your lender will search the market for the very best deals and interest rates for you and your family.

Once they have agreed on a lender then you will need to hire an equity release solicitor to work on your behalf and start your equity release conveyancing.

The equity release conveyancing process can take anywhere between 6 – 12 weeks to process, depending on how quickly your solicitor and lender are able to work together.

Once the conveyancing process is complete, your solicitor will then be responsible for sending your equity release funds into your bank account [2].

If you want more interest when it comes to the equity release process in Crawley, then speak to a qualified equity release adviser for more information.

Whilst the process might seem confusing at first, the equity release process is actually very straight forward.

Please call our 24-Hour Helpline: 0330 058 1579

How to qualify for equity release in Crawley

When it comes to equity release in Crawley, each lender has different qualification criteria. If you want to apply for a lifetime mortgage in Crawley, then you will need to be aged at least 55 years old or over.

You will need to own your own property in the UK which is worth at least £70,000 and you need to have paid off the majority of your pre-existing, traditional mortgage [3].

If you want to apply for a home reversion plan, the qualification criteria is slightly different. All home reversion plans are only available to those aged 65 or over.

Again, as with lifetime mortgages, you need to own your own property in the UK worth at least £70,000 and you must have paid off the majority of your traditional, pre-existing mortgage [3].

With both types of equity release in Crawley, you must be debt free. You cannot suffer from any debt, and if you do then you must declare this as soon as possible to your qualified equity release adviser.

In order to see if your home is suitable, your lender and adviser will organise someone to visit your home to carry out a home valuation.

The home valuation costs approximately £100 and will need to be paid upfront.

This home valuation will determine exactly how much your lender believes your home is worth, and therefore how much you are able to release from your home.

If you are unsure as to whether or not you would qualify for equity release in Crawley, then speak to a member of our team at Equity Release Warehouse for more information and guidance.

Please call our 24-Hour Helpline: 0330 058 1579

How much does equity release in Crawley cost?

If you are planning on taking out an equity release loan in Crawley, then you will need to be made aware of the upfront costs associated to taking out an equity release loan.

For example, you will need to pay for a home valuation as well as an equity release adviser.

Whilst your home valuation needs to be paid upfront, you will most likely be able to pay for your equity release adviser once you receive your funds.

Usually, they charge a percentage of your overall loan amount.

You will also need to pay for an equity release solicitor.

A solicitor can charge anything between £1,000 and £3,000 to complete the conveyancing process for you.

Again, this will either need to be paid upfront or it can be paid once you receive your equity release funds.

It is important to remember that you will also be charged interest on your equity release loan.

This interest will turn into compound interest and will increase your overall loan amount.

In order to keep this compound interest at bay, you might be able to pay off some of the loan or interest as you go, although this will never be mandatory.

If you choose to pay off some of your equity release loan early, then you need to be made aware of early repayment charges.

Most lenders let you repay up to 10% of the loan each year, before they start to charge you an early repayment fee or charge.

Please call our 24-Hour Helpline: 0330 058 1579

Talk to Equity Release Warehouse

If you think that equity release in Crawley is for you, then you will need to speak to a qualified equity release adviser.

Our team at Equity Release Warehouse are on hand to provide you with all of the necessary information you need to make a decision. They will never put any pressure on you to make a decision.

Our team will be able to use our very own equity release calculator to work out exactly how much we think you might be able to release from your home before officially applying for equity release in Crawley.

To talk to a member of our team, speak to 0330 058 1579 or by visiting us online by searching for www.equityreleasewarehouse.com.