Equity Release High Wycombe - Lifetime Mortgage Near Me

Equity Release in High Wycombe

Equity release on High Wycombe is a popular loan for those aged 55 or over.

Anyone who takes out an equity release loan is able to gain access to the cash that’s inside their own without ever having to sell up or downsize.

Lots of pensioners get to retirement age and realise that they simply do not have the funds available to them that they would have hoped for at that stage in life.

Most retirees think that they have to sell up and downsize in order to gain some extra cash.

However, this is where equity release in High Wycombe comes in.

Equity release in High Wycombe allows you to release a set amount of cash from your home without having to leave.

With equity release in High Wycombe, you can release either one large lump sum or a number of smaller payments, known as a drawdown plan.

You do not have to move home and will never be asked to sell up.

You also do not have to repay the loan until after you pass away or move into a care home. When this happens, your loan will be repaid through the proceeds of your equity release loan.

Your house should have increased over the years, meaning that the proceeds from the sale of the house should almost always cover the loan amount.

However, even if your house decreases in value for whatever reason, then you will be protected by the no negative equity guarantee.

This guarantee means that even if your home decreases in value and no longer covers the loan amount, your lenders will step in and pay off the difference.

Your next of kin will never be liable when it comes to paying off your equity release loan.

You will be charged interest on your equity release loan which will compound each year.

This compound interest will increase your overall loan amount significantly, and will also need to be repaid once you pass away or move into a care home.

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

What type of equity release loan should I opt for?

There are two main types of equity release in High Wycombe, known as lifetime mortgages and home reversion plans.

Lifetime mortgages are by far the more popular option, as you remain the sole owner of the property for the duration of the equity release loan.

However, you will be charged interest [1].

Home reversion plans are the least popular option when it comes to equity release in High Wycombe, as they involve selling a percentage of your home to the lender in exchange for access to your equity release funds.

This could be as much as 90% of your property, or as little as 10%.

You should only release the amount that you are comfortable with. The more you release, the more money you will receive.

Even though you are selling a percentage of your home to the lender, you will still remain the sole owner of the property and no lender has the right to ask you to move [1].

Which type of equity release loan you should opt for depends on your personal circumstances, and your equity release lender will be able to talk through the pros and cons of both types of loans.

You should weigh up the pros and cons of both types of loans and take this decision clearly, as opting for equity release in High Wycombe not only affects you, but it also affects those around you and your next of kin.

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

What happens when you pass away?

When you pass away or move into a care home, your loan will need to be repaid.

Once this happens, your loved ones and next of kin(s) will be responsible for selling your property and using the proceeds from the sale of the home to pay off the equity release loan in full.

Hopefully, the proceeds from the sale of the home will pay off the equity release loan in full.

If it does not, for whatever reason, then your lender will step in to pay off the difference as part of the no negative equity guarantee.

Your next of kin will never find themselves liable for paying off the difference. They will also have 6-12 months to sell your property and pay off the loan.

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

What can I spend my equity release loan on?

One of the best things about equity release in High Wycombe is that there are very few limitations on what you can spend your equity release funds on.

You do however need to inform your equity release advisor on what you plan on doing with your equity release funds, so that they can suggest and recommend the best types of loans for you and your personal circumstances.

Most people who opt for equity release in High Wycombe do so because they need access to more cash later in life.

A lot of people do so because they want a better lifestyle in retirement.

People work their entire lives to live a good retirement, and doing so requires access to the cash that they need.

Living a better lifestyle could include things such as joining a fancy health club, going on more holidays or getting a new car.

Others choose to opt for equity release in High Wycombe because they want to help loved ones.

The cost of living, high interest rates and ever-increasing house prices means that it’s harder than ever for young people to get on the housing ladder and grow their savings.

This is where equity release in High Wycombe comes in, as it allows you to gift the money that you receive to your grandchildren or loved ones.

This way, you get to see your loved ones enjoy the money that you receive instead of waiting until you pass away to leave your money as inheritance [3].

One of the best ways that you can spend your equity release funds is to make some home improvements and home renovations.

Remember, if you opt for equity release in High Wycombe then you will be expected to remain living in your home until you pass away or move into a care home.

This means that you might want to improve your home or make it more accessible for you and your family as you grow older.

For some people, this could include installing a stair lift, installing a few ramps around the house, converting the downstairs toilet to a wet room or re-landscaping your garden to make it more accessible.

Even if you do not need these home improvements just yet, it is important to look to the future and think about what you might need in the years to come.

Some home improvements or home renovations, such as an extension, might even increase the value of your home.

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

What are the pros and cons associated with equity release in High Wycombe?

There are numerous pros associated with equity release in High Wycombe, such as fixed interest rates and the fact that you get to spend the money you receive on whatever you want.

You are also always protected by the no negative equity guarantee.

This guarantee ensures that even if your house decreases in value and no longer covers the loan amount, then your next of kin(s) will never have to step in and pay off the difference. Instead, your lender will.

You can either choose to receive your equity release funds in one large lump sum or through a number of smaller payments, known as a drawdown plan.

How you receive your money depends on what you want and what you plan on spending your funds on.

If you are considering equity release in High Wycombe then you will need to seriously consider the downsides of equity release too.

There are a number of cons associated with equity release in High Wycombe, including compound interest which will increase the overall loan amount significantly.

Another downside associated with equity release in High Wycombe is that receiving your funds will stop any means-tested benefits. This is the case even if you aren’t yet in receipt of these benefits.

The other downside associated with equity release in High Wycombe is that you will sell your house for less than the market value.

When you sell your home to the lender in exchange for equity release, you will be doing so for less than the actual market value of your property.

This means that you might get more for your property if you were to sell it on the traditional housing market.

There are also a number of set up fees associated with equity release in High Wycombe, including the cost of an equity release adviser, solicitor and home valuation.

It is also important to understand that if you choose to pay off your equity release loan early or choose to exit your loan, then you will have to pay an early exit fee.

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

Speak to Equity Release Warehouse

If you are considering releasing equity from your home, then you will need to speak to an experienced equity release adviser, like the ones at Equity Release Warehouse.

Our team of specialist advisers are on hand to provide you with all of the relevant and necessary information you need to make a decision that is right for you and won’t ever put any pressure on you to release equity.

Speak to our team today and use our very own equity release calculator to work out how much you might be able to release from your home.

Call our team today on 0330 058 1579 or by contacting us online.

References

[1] https://www.equityreleasecouncil.com/what-is-equity-release/faq/what-are-early-repayment-charges-and-why-do-they-apply-to-my-equity-release-plan/