Equity Release Sevenoaks - Lifetime Mortgage Near Me

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

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Equity Release in Sevenoaks

Equity release is a popular way over 55’s are gaining access to additional cash later in life.

If you have lived in your home for a number of years, then you might be sitting on a significant amount of equity in your home.

With equity release in Sevenoaks, you get the chance to dip into this equity whilst still being able to remain living in your home [1].

You can release a lump sum, or a drawdown number of sums from your home and do not have to repay the loan until after you pass away or move into a care home.

Only then will you have to sell your home and use the proceeds from the sale of your home to repay the loan itself.

No one will ever be able to ask you to move home or sell up, as long as you stick to the terms and conditions of your loan.

You will be charged interest on your equity release loan, which will compound over the years.

As equity release loans last for as long as you live, or until you move into a care home, this could add up to a significant amount.

This compound interest will be added onto the overall loan amount, which will need to be repaid once you pass away or move into a care home [1].

In order to keep this compound interest at bay, you can opt to make some optional repayments.

These optional repayments would help to keep your overall loan amount to a minimum.

However, most lenders cap the amount you are able to repay each year to just 10%.

If you choose to repay any more of the loan, then you will be charged any early repayment fee [1].

The best thing about equity release in Sevenoaks is that you are free to spend the money you receive on whatever you want to.

With equity release in Sevenoaks, there are very few limitations on what you can spend your money on, as long as you make your adviser and lender aware of your plans and stick to the terms and conditions of your loan.

Lots of people who opt for equity release in Sevenoaks spend their money on a better lifestyle, a new car, helping their loved ones or simply making some home improvements and home renovations.

If you want to opt for equity release in Sevenoaks then you will first need to contact an equity release adviser for help and support.

They will talk you through the ins and outs of the different loans you might be able to apply for, as well as how the equity release process works.

Please call our 24-Hour Helpline: 0330 058 1579

How do you repay an equity release loan?

As mentioned above, you only have to repay the equity release loan once you pass away or move into a care home.

Only when either of these two things happen will you be able to sell your home. You will have to repay the loan via the proceeds from the sale of your home.

Hopefully, your house should have increased significantly in value, meaning that it will almost always pay off the equity release loan.

If this were to happen, any excess money would go to your loved ones as inheritance.

If your house were to decrease in value at all, then you might fall into negative equity.

This would mean that the proceeds from the sale of your home would not cover the loan amount and that there would be a shortfall.

If this were to happen, then your lender would pay off any excess as part of the no negative equity guarantee.

As you are using the proceeds from the sale of your home to repay the loan, you should brief your next of kin(s) and loved ones that they might not receive as much, if any, inheritance.

Please call our 24-Hour Helpline: 0330 058 1579

What can you spend your equity release loan on?

The best thing about equity release in Sevenoaks is that you are free to spend the money that you receive on what you want.

There are very few limitations in place when it comes to what you can spend your money on, as long as you make your adviser and lender aware of what you plan on spending your equity release funds on [2].

1. Home renovations and home improvements

A lot of people who opt for equity release in Sevenoaks do so because they want to make some home improvements around the house.

Remember, equity release loans are designed to last for as long as you live and you are expected to remain living in your home until you pass away or move into a care home.

So, you need to be happy with the state of your home.

Home improvements could include things such as extensions or a new kitchen.

Alternatively, you might choose to make your home more accessible by installing things such as handrails, a ramp or a new wet room downstairs.

Whilst you might not need these things now, you might do in the future if you are to live in your home for the rest of your life.

Making certain home improvements might also go a long way when it comes to increasing the value of your home.

Please call our 24-Hour Helpline: 0330 058 1579

2. Helping loved ones

There are a number of things that you can do to help your loved ones. Things are particularly tough for the younger generation, as it’s now harder and more expensive than ever to buy a house.

Likewise, the cost of further education and rental properties are at an all time high.

Lots of people opt for equity release in Sevenoaks because they want to help their loved ones financially and want to be around to witness it.

Leaving inheritance for your loved ones is a lovely and helpful thing to do, however you won’t be around to watch them enjoy it.

3. A better lifestyle

Finally, some others spend their equity release funds simply because they want to live a better lifestyle.

Many pensioners dream about living a happy and financially free retirement, where they do not need to worry about paying off their mortgage or doing the weekly food shop.

However, with the recent rise in the cost of living, more pensioners than ever are struggling to get by.

This is where equity release in Sevenoaks comes in.

You can opt to release your funds in one large lump sum, or through a number of payments which is known as a drawdown plan.

You could spend your funds on improving your weekly food shop, joining a health club or paying for a few more holidays each year.

Please call our 24-Hour Helpline: 0330 058 1579

What are the advantages and disadvantages of equity release in Sevenoaks?

There are numerous advantages to equity release in Sevenoaks.

For example, you will be given a fixed interest rate and the money you receive from your loan will be tax free.

Likewise, you are free to spend your equity release funds on whatever you want to, as long as you stick to the terms and conditions of your equity release loan.

You are also able to make some voluntary repayments if you wish to do so, in order to keep the interest you will be charged at bay.

Other than that, you do not have to repay your loan until after you pass away or move into a care home.

If you are seriously considering equity release in Sevenoaks, then you also need to be made aware of the associated risks and disadvantages to equity release.

For example, you will be charged interest on your equity release loan and this interest will compound. The longer you live, the more your loan will increase.

Whilst you can offer to repay some of your loan early, this will be capped to 10% and if you wish to repay anything above this amount you will be charged an early repayment fee.

Finally, opting for equity release in Sevenoaks means that your loved ones might not receive as much inheritance as they might have thought.

This is incredibly important to communicate with your loved ones about, in order to manage their expectations.

Please call our 24-Hour Helpline: 0330 058 1579

How much does opting for equity release in Sevenoaks cost?

If you are considering equity release in Sevenoaks then you need to be made aware of the associated costs.

There are a number of set up costs associated with equity release in Sevenoaks, including the cost of an equity release adviser, an equity release solicitor and a home valuation fee.

The cost of an equity release solicitor could be up to £3,000 [3].

How much your solicitor costs will depend on where you are based in the country and how complex your loan is.

You will also have to carry out a home valuation, which costs approximately £100. This will need to be paid upfront.

Please call our 24-Hour Helpline: 0330 058 1579

Speak to Equity Release Warehouse

If you are considering equity release in Sevenoaks or across Kent and want more information on how the process works, then you need to speak to a member of the team at Equity Release Warehouse.

Our team of specialists are on hand to offer you advice and support on the entire process.

It is also our job to talk you through the ins and outs of the advantages as well as the disadvantages of all things equity release, so that you have a clear understanding of the associated risks.

We will even use our very own equity release calculator to determine how much you might be able to release from your home.

To start your equity release journey today, call us on 0330 058 1579 or by visiting us online by searching for www.equityreleasewarehouse.com.