Equity Release Hemel Hempstead - Lifetime Mortgage Near Me

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

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Equity Release in Hemel Hempstead

Equity release in Hemel Hempstead is a particularly popular option for people in the area aged over 55 years old who are in need of some extra cash.

If you bought a house many decades ago and have been living in that house ever since, then the chances are that you will have a significant amount of equity built up inside your home.

If you have recently retired, then this equity is not much help if you are in need of some cash. This is where equity release in Hemel Hempstead comes in.

Equity release in Hemel Hempstead works by allowing anyone over the age of 55 years old the chance to release equity from their home, without ever having to sell up or downsize.

You are then free to spend that money on whatever you want to, and do not have to repay a penny until after you pass away or move into a care home [1].

Whilst you do not have to repay your loan until after you pass away or move into a care home, you will be charged interest on your loan.

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

As explained above, you only repay your loan once you pass away or move into a care home.

Once either of these two things happen, your home will be sold and the proceeds from the sale of the home will go towards paying off the equity release loan in full [1].

You are free to spend the money you receive on whatever you want, including home renovations or home improvements, helping loved ones with the cost of further education or simply a better lifestyle.

You can opt to receive these funds in either one large lump sum, or through a number of small payments known as a drawdown plan.

There are two main types of equity release loans used throughout the UK. These are known as lifetime mortgages and home reversion plans. Lifetime mortgages are by far the most popular option.

However, home reversion plans are also very common throughout the UK. Home reversion plans work a bit differently to lifetime mortgages, in that they involve selling a percentage of your home in exchange for access to your equity.

This could be as much as 90% of your home or as little as 10%. The more you sell, the more equity you will receive [1].

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

What Can You Spend Your Equity Release Funds On?

One of the best things about equity release in Hemel Hempstead is that you are free to spend your equity release funds on whatever you want.

Lots of people who opt for equity release in Hemel Hempstead do so because they want more access to cash later in life, rather than all of their wealth being tied up in equity [2].

Everyone dreams of a comfortable retirement, although more and more pensioners are reaching retirement age with less in their savings than they might have wanted or expected.

Lots of people spend their retirement funds on improving their lifestyle, which could include better weekly food shops, a health club or a new car or family holiday each year.

Others choose to spend their equity release funds on helping their loved ones and family members with things such as the cost of living, the cost of further education or the cost of a house deposit.

Finally, other people choose to spend their equity release funds on making some home improvements or home renovations.

If you have been living in your home for a number of years, then you might find that your house is looking a bit tired.

Likewise, if you opt for equity release in Hemel Hempstead, then you are expected to remain living in your home for as long as you live.

This means that you might need to make some changes to your home in order to make it a more comfortable place to live as you grow older [2].

Home improvements could include things such as landscaping your garden, building a new extension or making your home more accessible as you age.

This could include things such as installing hand rails, ramps, a stair lift or even a wet room downstairs if you think you should need it.

If you opt for equity release in Hemel Hempstead, then you can opt to release either one large lump sum or a number of smaller payments, which is known as a drawdown plan.

Which type of loan you are best suited to depends on your personal circumstances and what you plan on spending your funds on.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

How Long Does the Equity Release Process Take?

The equity release process takes approximately 6-12 weeks to process.

The equity release conveyancing process is similar to that of a house buying conveyancing process, and the speed of the conveyancing process very much depends on how well your solicitor is able to work in the time frame and the complexity of your loan.

You will need to hire an equity release solicitor to work on your behalf, and it is always best to hire a solicitor who has had previous experience in the equity release conveyancing process.

Your equity release adviser will also be on hand to help with the illustration and conveyancing process, ensuring that everything happens on time.

What are the Advantages and Disadvantages of Equity Release in Hemel Hempstead?

There are many advantages to taking out an equity release plan.

However, at Equity Release Warehouse we understand that anyone who seriously considers equity release in Hemel Hempstead needs to understand the disadvantages as well as the advantages of equity release.

The biggest advantage of equity release in Hemel Hempstead is that you do not have to move or sell up in order to gain access to some extra cash.

You are also then free to spend this cash on whatever you want, including helping loved ones or grandchildren [3].

Likewise, you do not have to repay the loan until after you pass away or move into a care home.

This means that you can use the money you receive to pay off your pre-existing mortgage, meaning that you could be mortgage free going into your retirement.

As there are no mandatory monthly repayments, you won’t feel financially strained each month.

Finally, one of the biggest advantages to equity release in Hemel Hempstead is that you will benefit from the no negative equity guarantee.

This guarantee ensures that even if your home decreases in value for whatever reason, and no longer covers the loan amount, then your next of kin(s) and loved ones won’t find themselves responsible for paying off the rest of the loan. Instead, your lender will pay off the rest of the loan on your behalf [3].

One of the biggest disadvantages to equity release in Hemel Hempstead is that you will be charged interest on your loan.

Whilst this interest might be fixed, it will turn into compound interest year on year.

This compound interest will increase year on year, and will significantly increase the overall loan amount.

This overall loan amount will need to be repaid via the sale of your home when you come to sell.

Likewise, if you are currently receiving any means tested benefits, then these will unfortunately stop once you receive your equity release funds.

This is because the money you will receive will be classed as savings, meaning that you will no longer be eligible for any means-tested benefits.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

How Much does Equity Release in Hemel Hempstead Cost?

There are a number of set up costs associated with equity release in Hemel Hempstead.

This includes things such as the cost of an equity release solicitor, an equity release adviser and of course, the interest you will be charged on your equity release loan over the years.

The cost of an equity release solicitor varies dramatically, but could range between £1,000 and £3,000 depending on the complexity of your equity release loan and how expensive your equity release solicitor is.

You will also have to pay for a home valuation on your property, in order to determine how much your home is worth and therefore how much equity you might be able to release from your home.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

Speak to Equity Release Warehouse

If you are considering taking out an equity release loan, then you will need to speak to an equity release adviser, like the ones at Equity Release Warehouse.

Our team of specialist advisers will be able to educate you on all things equity release and will provide you with all of the necessary information and facts.

What our team will never do is put any pressure on you to release equity from your home, as it is entirely your decision.

Our team will also use our very own equity release calculator to work out what your home might be worth, so that we can work out how much equity you might be able to release from your home.

Start your equity release journey today by calling our team on 0330 058 1579 or by visiting us online by searching for /www.equityreleasewarehouse.com.