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Lifetime Mortgage & General Equity Release Advice in Barnet
Reviewed by Tom Philips
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Equity release Barnet is proving an increasingly popular option for those aged 55 or over. When someone chooses equity release in Barnet, they will be able to choose from a lifetime mortgage or a home reversion plan. Which type of equity release plan you opt for will depend on a number of factors.
If you are considering equity release in Barnet, then speak to a member of our team at Equity Release Warehouse where our friendly and professional team will guide you into making the right decision for you, your family and your future.
Please call our 24-Hour Helpline: 0330 058 1579
Millions of people across the world are currently sitting on a huge amount of equity within their homes. The cost of living is continuously on the rise, which means that people might be struggling for money now or in the future.
In fact, if you bought your house decades ago, then you most probably bought your house for a lot less than you could now sell it for.
This means that you will have a lot of equity in your home, which is currently tied up instead of being cash in your pocket. This is why millions of people across the world release equity from their home to live a more comfortable and exciting retirement.
When you release equity from your home, you are still able to remain living in your home for as long as you want. This is because the equity release loan will always last for as long as you live.
Individuals are able to release money from their home tax-free, but they will have to pay interest on their loan. When the individual passes away, the house will be sold on their behalf, usually by loved ones or the next of kin.
The money that they get from the sale of the house will be used to pay off the loan. If there is anything left after the equity release loan is paid off, then this money will be given to the next of kin as an inheritance.
The equity release industry is led and governed by a body called the Equity Release Council [1] who make sure that everyone plays by the rules.
This is mainly to make sure that all products (equity release loans) are fair, standardised and in the best interests of the individual taking out the loan.
All equity release lenders, as well as equity release advisers should follow the standards set by the Equity Release Council, although unfortunately, not all do.
Many people think that they will be restricted on what they can and cannot spend their equity release money on. However, this is not the case.
Those who opt for equity release Barnet are able to use their equity funds on whatever they want. Lots of people use their funds on home improvements, which often involves adding an extension or making the house more comfortable for an ageing family.
Home improvements are always a great option, as this will also hopefully increase the value of the property which translates to more inheritance for your next of kin and loved ones.
Others might use their equity release funds on helping family or friends with the cost of living, such as paying for University fees or putting a deposit down on a house.
You might choose to invest your money, although it is always recommended that if you choose to gift or invest your equity release money, you speak with a qualified financial adviser before doing so. This is to ensure that you are making a wise and savvy investment.
Equity release allows you to live a better lifestyle during your retirement years whilst being allowed to stay in your own home, which you’ve known and loved for years.
Moving house later in life can be an incredibly stressful and emotional process. The beauty of equity release in Barnet is that you get the best of both worlds – you get access to your equity whilst being allowed to remain living in your house.
The two main types of equity release in Barnet are lifetime mortgages and home reversion plans. When you opt for one of these two plans, you can either receive your money in one large lump sum (lump sum lifetime mortgage) or through a number of smaller payments (drawdown lifetime mortgage).
Which type of plan and payment scheme you opt for depends on your personal circumstances and how you plan on spending your equity release money.
How much equity you can release from your home depends on a number of factors, and our team at Equity Release Warehouse will use our very own equity release calculator to work out how much this will be.
When considering equity release in Barnet, it is incredibly important to speak with an equity release specialist first, before making any decisions.
Please call our 24-Hour Helpline: 0330 058 1579
Lifetime mortgages are the best option to those aged over 55 and own their own property in the UK which is worth £70,000 or more and is their main residence.
With a lifetime mortgage, you remain the sole owner of your property. When you receive your money, you are able to spend this money however you want to, and do not have to repay any of the loan whilst you are still alive.
You will inevitably be charged interest on the loan, and the loan and its interest will be paid back when the house is sold upon your death [2].
The Equity Release Council ensures that all lifetime mortgages across Barnet include a no negative equity guarantee. This means that if your property decreases in value and when your next of kin come to sell the property, the proceeds do not cover the loan, then the lender will cover the difference.
This means that your loved ones and next of kin will never be liable.
In order to ensure that this does not happen, it might be a good idea to use your equity release money to increase the value of your house by paying for some home improvements, such as an extension.
It is also important to remember that your interest will be added to the total loan amount if it is not paid off whilst you are still alive. This interest will also compound over time which has the potential to significantly reduce how much inheritance is left for your loved ones.
In order to avoid this, people are able to pay off the interest on their loan as they go which will reduce the total loan amount [3].
If you are considering a lifetime mortgage in Barnet but want more information on whether a lifetime mortgage is right for you, then speak to our team at Equity Release Warehouse.
Please call our 24-Hour Helpline: 0330 058 1579
Home reversion plans work differently to lifetime mortgages. With a home reversion plan, you take out your equity but in return you sell a percentage of your property to the lender. This means that you no longer own the percentage of the property that you sell to the lender, but you do not have to pay rent on it.
You are also able to remain living in your beloved home, and will not be asked to move house at any stage. When you pass away or move into a care home due to ill health, your next of kin will sell the house.
The lender will get a percentage of the sale (whatever percentage they own of the property) and the rest will go towards paying off the loan, mainly the interest on the loan if this was not paid off whilst the individual was still alive [2].
As you can imagine, by choosing a home reversion plan you might be leaving your loved ones with less inheritance than if you were to choose a lifetime mortgage.
If you are considering taking out a home reversion plan, then it is incredibly important that you speak to an advisor at Equity Release Warehouse for help and support.
Please call our 24-Hour Helpline: 0330 058 1579
People across Barnet and the rest of the UK started releasing equity from their home many years ago. This was when the property market and the equity release market looked a lot differently. Since then, lots of things have changed.
Due to this, there is a lot of misinformation and confusion surrounding equity release within the general public, due to the ever-changing market and financial playing field.
Equity Release Warehouse are determined to set the record straight and help the public to overcome these myths and misconceptions surrounding equity release in Barnet.
It is important that everyone knows the facts of equity release before they make any commitments, as equity release in Barnet and anywhere else in the UK is a huge commitment that lasts for the rest of your life:
To begin with, lots of people think that equity release plans should be avoided due to the ever-changing interest rates. However, interest rates with all equity release plans are fixed or at least capped, as per the Equity Release Council’s guidelines.
This means that you will know exactly how much you need to repay before you commit to the loan, unlike with traditional mortgages where interest rates will change every three to five years, depending on your mortgage terms and conditions.
You are also allowed to stay living in your home for as long as you want to. There will never be any pressure to move house or leave your home. With lifetime mortgages, you will remain the sole owner of the house. With home reversion plans, you will have to sell a percentage of your home to the lender, but will never be asked to move house or pay rent on the house.
Lots of people also think that by choosing equity release in Barnet or anywhere else in the United Kingdom that you are preventing your loved ones from receiving inheritance, and are also putting them and their finances at risk.
However, the Equity Release Council protects against this by ensuring that all equity release plans include a no negative equity guarantee. This guarantee helps to ensure that if your house decreases in value and no longer covers the equity release loan, then your loved ones will never be the ones responsible for paying off the loan.
Equity release plans also now allow individuals to pay off the interest on their loan as they go whilst they are still alive. This reduces the loan amount and helps to ensure that your loved ones receive as much inheritance as possible.
If you are considering equity release in Barnet but want more information on the facts surrounding equity release, then speak to our fully qualified and professional team.
Please call our 24-Hour Helpline: 0330 058 1579
If you have come this far on this page, then it is probably because you are seriously considering equity release in Barnet and want more information.
If this is the case, then you might be interested to learn more about the qualification criteria for equity release in Barnet and the rest of the UK.
For example, the below factors are the generic qualification criteria factors across a range of different lenders currently operating across Barnet and other places in the UK.
As previously stated, each equity release advisor and lender is different, and these qualification criteria factors might differ between lenders and schemes. There might be ways around these factors, which is why it is always worth speaking to your advisor about the ins and outs and each scheme individually.
If you are currently considering whether equity release in Barnet is for you and want more clarification on whether you would qualify for equity release, then speak to our team at Equity Release Warehouse for friendly and helpful advice.
Please call our 24-Hour Helpline: 0330 058 1579
Whilst there are lots of benefits to equity release in Barnet, there are also a few drawbacks and pitfalls that it is worth knowing about before you commit to a plan. It is important to know all the facts surrounding equity release in Barnet, and your equity release advisor will ensure that they provide you with a clear, transparent and honest picture of equity release.
For example, there is a chance that by opting for equity release in Barnet, your loved ones might not receive as much inheritance as they would if you did not take out an equity release loan.
This is mainly due to the interest added onto the loan, as well as the fact that when your loved ones sell the house, they have to first pay off the loan before anything can go to them.
This is why it is always recommended to try to pay off at least some of the interest on your equity release loan before you pass away, as this could increase the amount of inheritance you leave your next of kin and loved ones.
In addition to this, whilst moving house is not forbidden on an equity release scheme it can make things harder. If you do want to move house, then your equity release lender will need to accept your new property as part of the deal.
Finally, opting for equity release in Barnet does involve some initial costs. This involves paying for an equity release advisor and solicitor to help you to get through the process.
These can cost a significant amount, with financial advisor fees sometimes adding up to a total of 2% of the overall value of the equity release loan. You will also have to pay interest on the loan which will accumulate into compound interest.
If you are releasing equity to combat the cost-of-living, then it might be better to first try to see if you can better manage your budget. Below, we list organisations that may be able to help in Barnet:
Address: 40-44 Church End, London NW4 4JT
Telephone: 0808 250 5708
Website: https://barnetcab.org.uk/
Address: Oak Ln, London N2 8LT
Telephone: 020 8203 5040
Website: https://www.ageuk.org.uk/barnet/
It may also be worth reaching out to organisations such as Barnet Borough Council and StepChange UK.
Please call our 24-Hour Helpline: 0330 058 1579
When you take out an equity release loan, the idea is that you remain living in your house until you pass away or move into long-term care. However, at Equity Release Warehouse we understand that things can sometimes change, and life can get in the way of plans.
If you have recently taken out an equity release loan in Barnet but think that you might need or want to move house, then you will be able to do so as long as your equity release lender accepts the new property.
Moving your equity release product to a new property is not as complicated as it might initially seem.
If you are considering transferring your equity release loan to a new property then it is mandatory that you seek the advice of a specialist advisor. They will be able to talk you through the process as well as the pros and cons behind moving house and porting your loan to the new house.
Unfortunately, moving house when you already have an equity release loan can be difficult, as your lender must accept the new house, and the new house must be similar in construction, size and features to available plans.
This can be a hard concept to grasp, which is why it is important that you seek the help and advice of a specialist advisor to guide you through this step.
If you struggle to transfer or port your equity release plan to a new property, then your equity release advisor at Equity Release Warehouse might recommend that you pay off your equity release loan on your current property, sell your house, buy another one and take out another equity release plan on your new property.
Whichever way you and your advisor choose to do it, your advisor will need you to provide them with a document called a Key Facts Illustration, otherwise known as a KFI.
When you choose to port your equity release loan to a new house you will have to pay your valuation fee again and will have to pay this straight away. You will also most likely need to pay for solicitors again. As the process will be quicker than last time, the solicitor fees will not be as much as last time.
It is also important to remember that if you choose to port your existing equity release plan to a new mortgage, you might receive a new interest rate which could be more expensive than your current one.
The Equity Release Council and Financial Conduct Authority ensure that all individuals who have taken out an equity release plan and who are considering porting their mortgage to a new property are offered fair and transparent deals by both lenders and equity release advisors.
If you are considering either taking out a new equity release loan on a new mortgage or moving your current plan to a new property, then it is important that you are offered fair advice and products by advisors and lenders alike.
Please call our 24-Hour Helpline: 0330 058 1579
There are a few different reasons why you might not be able to transfer and port your existing equity release loan to a new property. The lender may or may not accept the new property, which depends on whether the new house meets their qualification criteria.
For example, your lender might reject your application if your property is made out of certain materials which aren’t standard materials for building a house, which includes some types of concrete.
The lender might also reject your application if the new property is in a retirement home or is a leasehold property. They might also reject your application if the new property is deemed high risk for flooding or needs a lot of renovation work to make it a safe property to live in.
Equity release in Barnet has the potential to improve your quality of life. By opting for equity release in Barnet, the first port of call will be paying off your pre-existing mortgage.
This will ease the burden most people experience with monthly repayments. Once your initial mortgage is paid off, you will have more flexibility in how you spend the remaining equity release loan.
Other people choose to spend their equity release money on consolidating any debt that they might have. This is always recommended, as this will significantly reduce any stress associated with debt.
Others choose to use their equity release money in Barnet on home improvements. They might choose to add an extension on their house, or optimise their house to make it comfier and easier to move around as you age.
Please call our 24-Hour Helpline: 0330 058 1579
If you are considering equity release in Barnet, then speak to a member of our team at Equity Release Warehouse. Our team will provide you with all of the necessary information that you need to make an informed decision that is right for you.
We will never add any pressure to make a decision, as we appreciate releasing equity from your home is an important and big decision.
If you want more information on equity release in Barnet, then call us for free on 0330 058 1579 or by visiting us online at www.equityreleasewarehouse.com.
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