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Lifetime Mortgage & General Equity Release Advice in Birmingham
Reviewed by Tom Philips
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.
As you are on this page, we assume you’ve already considered equity release Birmingham, or perhaps you’re intrigued by it but you don’t know enough about it.
Before explaining why you should release equity in Birmingham, we want to explain what equity release is in general. It is a scheme for homeowners aged 55 or over who would benefit from accessing some of the money that is tied up in the value of their Birmingham home.
Equity release consumers apply to an equity release lender for a loan that is secured against their house. If they are approved for this loan, they will receive tax-free cash either as a lump sum or in regular instalments, and they will not have to repay the loan themselves.
So, how is an equity release loan paid? When you pass away or go into permanent care, the equity release lender will sell your home and take the proceeds from it in proportion to how much you have borrowed, leaving the rest to any beneficiaries.
Things work slightly differently with a home reversion, as it does not involve taking out a mortgage. Most of our customers opt for a lifetime mortgage, so this information isn’t relevant for them, but see our post on home reversions if you are interested.
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Now that you understand the premise of equity release, you may be wondering why you should consider equity release Birmingham. This is a valid question, given that releasing equity involves getting into debt and having less inheritance to pass on to your loved ones.
The truth is that too many people are struggling to make ends meet in retirement, and they prioritise inheritance over everything else, which means they are miserable in their later life.
We do not want to advocate leaving no money to your family, but equity release allows you to benefit from some money right now whilst still being able to leave something to your loved ones.
The idea that your family will receive no money is a myth, as it is possible to protect their inheritance with most equity release schemes. What’s more, most people’s families are happy to watch them enjoy a comfortable retirement rather than being unable to pay the bills.
Speaking of paying the bills, this is one reason to release equity in Birmingham. If your income is not currently covering your bills, it can be very worrying as you may wonder how long you will be able to keep going until you have to take out a loan or downsize.
Many people would prefer to stay in their current property for the rest of their lives, especially if they have already worked hard to renovate it over the years, or they live near to family who can support them as they age.
Equity release in Birmingham facilitates this as you can get equity release mortgages without moving home. You could even put your equity loan towards home renovations that allow you to live in your ideal property without moving (1).
That said, equity release is not without its disadvantages, a list of which we outline here.
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 Birmingham:
Address: Gazette Buildings, 168 Corporation St, Birmingham B4 6TF
Telephone: 0344 477 1010
Website: http://bcabs.org.uk/
Address: Riverside House, 21 Alcester Rd, Moseley, Birmingham B13 8AR
Telephone: 0808 196 8778
Website: http://riverside-moneyadvice.org.uk/
Address: 34 Old Walsall Rd, Birmingham B42 1NP
Telephone: 0121 437 0033
Website: http://www.ageukbirmingham.org.uk/
Address: Community Centre, 277 Old Oscott Ln, Birdbrook Rd, Birmingham B44 9TY
Telephone: 0121 437 0033
Website: http://www.ageukbirmingham.org.uk/
Address: Stratford House, Stratford Pl, Sparkbrook, Birmingham B12 0HT
Telephone: 0121 437 0033
Website: http://www.ageukbirmingham.org.uk/
Address: 77-79 Vivian Rd, Harborne, Birmingham B17 0DT
Telephone: 07546 580565
Website: https://www.stjohnsharborne.org/moneyadvice
Address: 73-75 Aston Rd N, Birmingham B6 4DA
Telephone: 0121 507 0019
You can also read our guide to the alternatives to equity release here.
Please call our 24-Hour Helpline: 0330 058 1579
If you are referring to having a house, bungalow or flat, you can release equity in Birmingham with any of these types of property. It is possible that you would get a higher loan from a house as they tend to sell for more, but this is dependent on the value of said property.
As for what your property should be like, it must be worth at least £70,000 and be in a condition that is appropriate according to the equity release lender. This is of course subjective, so the lender will arrange a property valuation to decide whether they are willing to make an offer of a lifetime mortgage.
Independent equity release advisers are incredibly important in the process of equity release in Birmingham. They help to ensure the equity release consumer is aware of exactly what they are getting themselves into, and the effects this could have on their future.
All advisors are considered Independent Financial Advisors (IFAs), and each one is registered with the Financial Services Registered maintained by the Financial Conduct Authority.
Your equity release lender can also help you to choose a specific plan if you are struggling to decide which one would be the most suitable for you and your family. They are experts in all the different types of equity release plans, so they are always happy to find one for you.
If you are not yet convinced of the importance of having an equity release lender, let’s imagine equity release in Birmingham without one.
You would be left on your own to do all your research, you would have no one to ask questions to, and you would have to make an application to a lender without any advice.
If you agree that having an expert adviser is vital, please get in touch with us to speak to one of the wonderful members of our team who will guide you through the equity release process when you are ready.
Please call our 24-Hour Helpline: 0330 058 1579
It is also vital that you get your own equity release solicitor, as the lender will have their own experienced property solicitor to account for their needs, so you need one to.
If you already have a solicitor who is experienced in equity release, you can request to use them again and the lender will decide whether this is allowed.
Solicitors aid the process by reading the offer made by the lender carefully, helping with the property valuation, checking title deeds, and other significant tasks.
All solicitors who will assist your application are regulated by the Solicitors Regulation Authority and members of the Law Society of England and Wales.
Without an equity release lender, you would not be able to take out equity in Birmingham, so it goes without saying that they play a significant role in the process.
Lenders evaluate your property and your personal circumstances to decide whether you are eligible for equity release. The main things that they check are that you are at least 55 years old, you own a property, and your property fits their expectations in terms of its value.
They will also check other important things including whether you have an existing mortgage and whether you can afford equity release based on the proposed costs.
Some lenders are very strict about what they want in a property and a homeowner, so don’t be discouraged if you are rejected by the first lender you go with. It may be possible to find a different lender in Birmingham who will make you an offer for a lifetime mortgage.
Some of the reputable lenders the financial advisors will research on your behalf include Scottish Widows, Legal & General, Aviva, Liverpool Victoria (LV), Canada Life, more2life, Hodge, Just Retirement, Pure Retirement, One Family and LiveMore Mortgages.
Please call our 24-Hour Helpline: 0330 058 1579
As you will have an equity release adviser and a solicitor to support you, you will never be left to organise a process on your own. In this sense, the onus is on the professionals to ensure no mistakes occur.
However, there are expectations of the homeowner too. You should be open and honest about your personal situation so that you end up being enrolled on the right plan with the right lender. This is also important from a legal point of view, as there will be issues if you are not honest about your finances.
You should also be timely with your application, and though this is mainly on your adviser, they cannot force you to sign the documents, so make sure you’re signing them in time so that there are no delays on the process from your end.
Finally, speak up if you are not happy with something. It is possible that you will agree to a certain plan, and after applying to a lender, you will realise that you are no longer interested in this plan. If that’s the case, speak up as soon as you can, as it’s better to do this at a stage when changes can be made.
Please call our 24-Hour Helpline: 0330 058 1579
You will not be able to get a joint lifetime mortgage if your partner doesn’t agree to it. You could get an individual mortgage, but this may be complicated as you would have all the rights to the home and your partner would struggle if you passed away first (2).
You could have an open conversation with your partner and look at your options, as it’s always possible to take a different route such as remortgaging your property, downsizing, getting traditional loans, claiming benefits, or tightening your budget.
It may even be possible to start with one of these options and then release equity further down the line if your partner agrees to it. Many equity release consumers put off the process for years and then finally realise it would be the most beneficial thing for them.
If your partner is willing to speak to an equity release expert, why not contact us and allow us to explain the pros and cons of equity release in detail? Even if your partner does not agree to it, at least you will know you have tried.
Please call our 24-Hour Helpline: 0330 058 1579
As we mentioned earlier, any equity release consumer who wants to leave an inheritance can most certainly do so through inheritance protection. This is included in most lifetime mortgages in Birmingham, as well as home reversion plans.
With equity release, your loved ones do not have to pay the standard 40% inheritance tax on the funds they inherit. This is because it is very rare that the funds will exceed the threshold for inheritance tax, given that a large portion of your money will be taken by the equity release provider after they sell your home.
If you are planning on moving home frequently, we do not recommend taking out equity in Birmingham. This is because equity release lenders expect you to stay in your home permanently, and this usually means you cannot move.
If you do want to move, lenders who are members of the Equity Release Council (ERC) must permit this, but they can choose which property you move into, so it may not be exactly what you would like. Even in this case, it is viewed as a one-off situation, and they would not be pleased if you kept requesting a new property.
If you want to see more of Birmingham or even of the world, you could get a second home plan and deal with your moving itch that way. It would allow you to purchase a second property that you would live in for a significant portion of the year, but you would keep your original property too.
Please call our 24-Hour Helpline: 0330 058 1579
Equity Release Warehouse offer free consultations about equity release in Birmingham and other areas of the world. We know that there are many things to consider before releasing equity in Birmingham, and we would be happy to walk you through this if you are finding it overwhelming.
Don’t worry if you aren’t sure that you are eligible for equity release in Birmingham, as the first consultation is free so you have nothing to lose. We will let you know immediately if you are not entitled to an equity release loan, and we will outline your other options.
Just because you are not eligible right now does not mean you never will be, so if you can do anything to change your entitlement, we will advise you on this. For instance, you could move location, pay off your existing mortgage, or borrow from loved ones.
On the other hand, if you are lucky enough to be eligible, we will let you know and begin to explain how you can fill out an application. We will not rush you to do this, but if you are ready, we are ready. The application process is fairly straightforward and you usually only have to wait a week for an answer, so what are you waiting for?
[1] OPINION: Using equity release for home improvements https://www.eveningnews24.co.uk/news/business/how-equity-release-can-fund-home-improvements-9186298
[2] Revealed – what happens to equity release plans when you die? https://www.introducertoday.co.uk/breaking-news/2022/8/revealed–what-happens-to-equity-release-when-you-die?source=newsticker
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