Equity Release Worthing - Lifetime Mortgage Near Me

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

Request A Callback

Get in touch today on 0330 058 1579 for a free, zero obligation consultation. We can help you locate equity release advisors in your local area.

Equity Release in Worthing

Equity release in Worthing is a form of loan, only available to those aged 55 or over who are in need of some extra cash in their retirement.

In order to qualify for equity release in Worthing, you need to be aged at least 55 years old, own your old property in the UK worth at least £70,000 and this property must be your main residence [1].

The best thing about equity release in Worthing is that you only have to repay the loan once you pass away or move into a care home.

Upon either of these two things happening, you will be expected to sell your home. The proceeds form the sale of your home will pay off the equity release loan.

However, you must remember that as with any type of loan, you will be charged interest on your equity release loan.

This interest will be charged each month and will compound year on year.

Hopefully, your house would have increased in value significantly, meaning that it will not only cover the initial loan amount, but it will also cover the added interest as well.

In order to keep this compound interest at bay, you might choose to make some optional repayments each year.

You can usually pay up to 10% of your loan each year, before you will be charged an early repayment fee.

This will keep your overall loan amount at bay, meaning that there might be something left over from the proceeds of the sale of your home, which can go to your loved ones as inheritance.

If the proceeds from the sale of your house does not cover the loan amount by the time you and your loved ones come to repay the loan, then you might be worried about falling into negative equity.

However, as per the Equity Release Council’s standards and values, all equity release loans across Worthing and the rest of the UK will benefit from the no negative equity guarantee.

This guarantee ensures that if the proceeds from the sale of your house does not cover the loan amount, then your lender will be left responsible for paying off the rest [1].

Whatever loan you opt for, you will be given a fixed interest rate.

This means that the interest rate you are given when you first take out your equity release loan will remain the same for the entire duration of your loan, no matter what happens in the housing market.

This also means that your qualified equity release adviser will also be able to work out exactly how much you will owe each year that your loan continues for and will draw this up in your key illustration.

Please call our 24-Hour Helpline: 0330 058 1579

How much does equity release in Worthing cost?

If you are considering opting for equity release in Worthing, then you need to be made aware of the associated costs.

There are a number of set up costs associated with equity release in Worthing. This includes things such as the cost of an equity release solicitor, equity release adviser and the cost of a home valuation fee.

The cost of a home valuation fee usually comes to approximately £100 – £200 depending on the size of your home and where you are based in the country.

Additionally, you will need to pay for the cost of a solicitor, which usually comes to approximately £1,000 – £3,000 [2] depending on how expensive your solicitor is and where you are based in the country.

You must also remember that you will also be charged interest on your equity release loan.

This interest will be charged each month or year, depending on the terms and conditions of your loan.

The longer your loan continues (the longer you live) then the more interest you will be charged. This interest will grow and compound year on year and will be added to the final loan amount.

If you are considering equity release in Worthing and want to know more about the associated set up costs or how much interest you might be charged, then speak to a qualified equity release adviser from the Equity Release Warehouse team.

Please call our 24-Hour Helpline: 0330 058 1579

What can I spend my equity release funds on?

The best thing about equity release in Worthing is that there are very few limitations on what you can spend your equity release funds on. M

ost people release equity from their home because they are struggling for income during their retirement.

Whilst most people pay into a private pension their entire working lives, others simply rely on their state pension.

More and more pensioners are relying on equity release in Worthing for a better lifestyle.

You could spend your equity release funds on helping with your weekly food shop, paying for a holiday or joining a health club. You could also put the money towards a new car.

Likewise, people choose to spend their funds on helping their loved ones with their finances.

For example, an increasing number of young people are struggling with the cost of living and getting on the housing ladder.

A lot of pensioners decide to put their equity release funds on helping their grandchildren with a house deposit or paying for their further education.

However, the majority of pensioners who opt for equity release in Worthing are doing so because they want to pay for home renovations and home improvements.

This could include making your home more pensioner-friendly for when you age.

This could include things such as installing hand rails, installing a stair lift and putting in a wet room.

You could also put the money towards an extension or a new kitchen. Not only will this improve your lifestyle, but it might also increase the value of your home.

Please call our 24-Hour Helpline: 0330 058 1579

What are the advantages and disadvantages to equity release in Worthing?

There are numerous pros and cons associated with taking out an equity release plan.

Each different plan will have its own pros and cons and any decent and qualified equity release adviser will want to talk you through not only the benefits of taking out an equity release plan, but the potential drawbacks of taking out an equity release plan as well [3].

1. Advantages of equity release in Worthing

For example, one of the biggest advantages to equity release in Worthing is that you are free to spend the money on whatever you like.

As long as you make your equity release adviser aware of what you plan on spending the money you receive on, then there are very few limitations in place.

Likewise, the interest you will be charged will be fixed for the duration of your equity release loan.

This means that the amount of interest you pay will not fluctuate each month or each year, regardless of the financial market.

With equity release in Worthing, you will never be asked to move out or sell up.

Despite the fact that you have withdrawn the equity from your home, you will remain the owner and no longer will ever be allowed to ask you to sell up or move at any point, as long as you stick to the terms and conditions of your loan.

Finally, every equity release loan across Worthing and the rest of the UK is protected by the no negative equity guarantee.

This equity guarantee ensures that even if your home decreases in value over the years, and the proceeds from the sale of the home fails to cover the loan amount, your family and next of kin(s) will never be responsible.

Instead, your lender will always be responsible for stepping in and paying the difference.

Please call our 24-Hour Helpline: 0330 058 1579

2. Disadvantages of equity release in Worthing

There are a number of disadvantages of equity release, which any qualified and assured equity release adviser should talk you through before allowing you to officially apply for equity release in Worthing.

The biggest disadvantage to equity release in Worthing is that you will be charged interest which will compound over the years.

Compound interest is essentially interest on interest, and means that your overall loan amount will increase significantly the longer you live.

Whilst you can make some voluntary repayments to try to keep your compound interest at bay, this will be limited to approximately 10% of your total loan amount.

If you wish to repay any more of this, then you will be charged an early repayment fee.

Likewise, when your next of kin(s) come to sell your home, they will have to use the proceeds from the sale of your home to repay the equity release loan.

This means that it is very unlikely that they will receive any inheritance.

Therefore, you might need to make your next of kin(s) aware of your plans and the consequences of taking out an equity release loan.

Finally, you will also lose your access to any means tested benefits if you opt for equity release in Worthing.

This is because the funds you receive will be classified as income and savings, so you will no longer qualify for any means tested benefits.

You should also think ahead to the future too, as this might be something you need to rely on for income as you age.

Please call our 24-Hour Helpline: 0330 058 1579

Speak to the Team at Equity Release Warehouse

If you are considering opting for equity release in Worthing or across West Sussex but simply do not know where to start, then speak to a member of our team at Equity Release Warehouse.

Our team of specialist advisers are on hand to steer you through the process and provide you with all of the necessary information you need to make an informed decision that is right for you.

Contact our team today by calling us on 0330 058 1579 or visit us online by searching for www.equityreleasewarehouse.com.