Equity Release Coventry - Lifetime Mortgage Near Me

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

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Equity Release Coventry & Near Coventry

If you are aged over 55 and living in Coventry, then you might want to consider equity release Coventry as a way of living a more comfortable and financially free retirement.

When you opt for equity release in Coventry, you will be able to gain access to a certain percentage of equity that has built up in your house. You will also be able to remain living in your beloved home during this time.

If you are considering equity release in Coventry, then you should always seek the advice of an equity release specialist before submitting your application to the lender.

This is because an equity release specialist will be able to talk you through the process, and highlight the very best equity release plans on offer to you.

They will also talk you through the costs equity release in Coventry, as well as highlighting the very best interest rates and lenders for you.

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.

At Equity Release Warehouse, our specialists are able to provide you with all of the necessary information, and help to guide you through the process so that you feel comfortable and confident in your decision.

All equity release providers, lenders and advisors across Coventry and the rest of the UK are monitored and standardised by the Equity Release Council [1] who are responsible for setting high standards in the industry, so that all plans and lenders are fair. All advisors are regulated by the Financial Conduct Authority.

One of the great things about equity release Coventry is that you are able to spend the money you release from your house in whichever way you see fit, as most lenders do not have any restrictions when it comes to how you spend your equity release in Coventry.

It is important that you are open with your equity release advisor about how you plan on spending your equity release in Coventry.

This is mainly so that they can ensure that you are spending your equity release funds on good investments, and are releasing equity from your home for the right reasons.

There are many different equity release plans offered by a range of different lenders, all with different interest rates.

Which equity release plan you should opt for depends on a number of different circumstances, including what you plan on spending the money on, whether you need a lump sum or a number of smaller payments and how old you are.

This is why it is crucial to be open and honest with your equity release advisor, so that your advisor can place you on the correct equity release plan for you, that best suits your needs.

If you are considering equity release in Coventry, then you should think long and hard about how you want to receive your equity release funds.

For example, depending on what scheme you opt for, you might be able to receive your equity release funds in one large lump sum. This might be the best option if you are hoping to spend your equity release funds on home improvements or a holiday.

However, others opt to spend their equity release in Coventry on a better lifestyle, which means that they would be better suited to receiving their equity release funds through a number of smaller payments, which you would receive monthly.

Again, you should discuss your equity release plans with your equity release advisor so that they can put you on the best scheme, and make sure that you are making the right decisions for you.

They will also ensure that you do not release more equity than you truly need, as you will be paying interest on your loan. Unfortunately, unless it is paid off frequently, then this interest will quickly turn into compound interest.

At Equity Release Warehouse, our team of specialist advisors are on hand to talk you through the equity release process and ask any questions that you may have, be them big or small.

They will also be able to talk you through the pros and cons of the different equity release schemes across Coventry and the rest of the UK, which can prove helpful considering the vast amount of schemes and their complexities.

However, there are two main types of equity release in Coventry. These two equity release plans are lifetime mortgages, and home reversion plans. Depending on your age and financial situation, you will be recommended one of these two plans.

Before you speak with one of our equity release advisors at Equity Release Warehouse, you should consider the following factors:

Are you planning on moving house in the near future, or are you planning on living in your house for the years to come?
Do you need access to the funds immediately or are you able to wait a number of weeks, or months?
How much equity release do you truly need?
Would you benefit from receiving your equity release in one large lump sum, or through a number of smaller payments?

If you would like more information on how equity release in Coventry works, then speak to a member of our friendly and helpful team at Equity Release Warehouse to discuss whether you would be eligible and if so, what plan you would be best suited to.

Why is Equity Release Coventry So Popular?

There are a number of different reasons why equity release Coventry and across the rest of the UK is so popular. However, more and more people in Coventry in particular are choosing to release equity from their homes.

This is because house prices in Coventry have been steadily on the rise for a number of years.

This is because Coventry was named City of Culture in 2021, and is now known across the UK for rising levels of employment and new businesses.

For these reasons, more and more people are choosing to move to Coventry which in turn, is creating more demand in the property market.

For this reason, house prices across Coventry have risen between approximately 13% from the years 2018 and 2019, according to Rightmove [2].

With increases in house prices across Coventry, those who bought their houses many years ago and have paid off a significant amount of their mortgage might be sitting on a considerably large amount of equity in their home.

People living in Coventry might often find that they will sell their property for a lot more money than they bought it for many years ago.

Should I Opt for a Lifetime Mortgage or a Home Reversion Plan?

There are two main types of equity release in Coventry. The most popular equity release plans are lifetime mortgages and home reversion plans.

Your equity release advisor will be able to talk you through the differences and pros and cons when it comes to these plans, as well as recommending which plan might be best for you.

Below is some more information on the ins and outs of lifetime mortgages and home reversion plans according to the National Debtline [3].

1. Lifetime mortgages

A lifetime mortgage is commonly used throughout Coventry and the rest of the UK. During a lifetime mortgage, individuals borrow equity from their home, whilst still being able to live in your home whilst remaining the sole owner of your property.

When you apply for a lifetime mortgage in Coventry, you will not have to repay the loan until you pass away or move into long-term care.

It is important to understand that until this happens, you remain the owner of the property and are responsible for looking after the house and any garden.

With a lifetime mortgage, you will not be taxed on the money you receive. However, it is important to understand that you will be charged interest on the equity release loan.

Most people choose to repay this interest through frequent payments, whether that be monthly or annually. However, some others choose to allow their interest to build up and turn into compound interest.

If you would like more information on how your equity release plan will be repaid, then speak to a member of our team or visit our helpful and informative website.

With an equity release plan in Coventry, if you sell your property for more than the loan amount, then your next of kin will inherit the amount that is left.

However, if you sell your property for less than the loan amount, then the lender is liable to pay the difference on this debt, not your family and next of kin.

In order to ensure this, your equity release plan and contract will include a no-negative equity guarantee, which is standardised by the Equity Release Council.

When you apply for a lifetime mortgage equity release plan in Coventry, your age and health will be taken into account, and will determine how much money you are able to borrow.

In order to qualify for a lifetime equity release mortgage, you will need to be aged 55 or over, own your own home in the UK worth £70,000 or more and will need to have paid off a large amount of your mortgage.

According to a recent study carried out by ResearchGate [4], a lifetime mortgage equity release plan is the loan model of the equity release industry, in which less than approximately 0.1% of the overall mortgage market use [4].

2. Home reversions

If you are slightly older than 55 years old, then you might want to consider a home reversion plan instead. In fact, most home reversion plans across Coventry are reserved for those aged over 65 years old.

A home reversion plan is when individuals are able to sell a certain percentage of their home in return for some of the equity within their property.

However, the amount that they sell a percentage of their property for will be sold under the current market value, which means that they would be selling this percentage of their home to the equity lender for less than they would get if they were to simply sell their house like normal, on the property market.

However, just like with a lifetime mortgage, the great thing about a home reversion plan is that individuals are able to stay living in their beloved home for the duration of the equity release loan.

They will only be expected to repay the loan after they pass away or move into long-term care. The home reversion loan will then be paid off from the sale of the house.

Most people find that when they come to sell their property, their property has increased in value since first buying it many years ago. If this is to happen, then your next of kin will inherit the additional equity. If the house sells for less than the loan value, then the equity release lender will take on this debt.

If you are considering equity release in Coventry in the form of a home reversion plan, then you should speak to an equity release advisor in order to work out whether you would qualify for this type of equity release scheme.

According to the same study carried out by ResearchGate [4], the home reversion plan is the sale model of equity release, which is less popular across the world when it comes to equity release [4].

Things to Remember with Equity Release in Coventry

If you are considering equity release in Coventry, then there are a number of different things that you should consider before signing on the dotted line, or engaging a solicitor or lawyer in order to avoid any unnecessary costs or wasted time.

1. Your Age

If you want to release equity from your home, then your age will be taken into consideration. For example, you will only be able to opt for a lifetime mortgage if you are aged 55 or over, and will only be considered for a home reversion plan if you are aged 65 or over.

2. Your Health

Along with your age, your health will also be taken into consideration when considering any equity release plan across Coventry or the rest of the UK. For example, if you suffer from any long-term or serious illnesses, then you might not qualify for equity release in Coventry.

3. Ask for an Illustration

Before you sign on the dotted line, you will need to seek the advice of a lawyer and solicitor so that they can write up an illustration for you. This illustration will lay out all of the costs and interest rates in your plan, so that you will have a clear and accurate picture of what you will be expected to pay back over the years.

4. Moving House

When you opt for an equity release plan in Coventry, most people decide to remain living in their house until they pass away or move into long-term care.

However, some people do decide to move house for a number of different reasons, some of which can be helped and some cannot.

Despite common belief, you are able to move house if you opt for equity release in Coventry. In most situations, you are simply able to transfer your equity release debt and plan to your new property and new equity release lender.

However, it is important to check that your new lender is able to accept the equity release plan.

In order for this to work, your new provider must be happy to accept your new property as security for the debt you have. However, if the new property is less than the current value of your current property, then it is important to understand that you might have to repay some of the loan before you move house.

You must also understand that not all equity release schemes are easy to transfer to different properties, and it is important to check that you are able to move house with your particular scheme when you first sign up, if moving house is something you think you might do in the future.

If you would like more information on this topic, then visit our page on how to move house when you have an equity release plan.

5. Interest Rates

Before you take out an equity release scheme in Coventry, you must also understand that you will need to pay interest on your loan. Depending on who your lender is, you will be offered a fixed interest rate.

It is important to speak to your equity release advisor about the interest rate attached to your loan. You should also speak to your equity release advisor about how you want to pay back the interest on your loan.

Some individuals choose to pay off the interest on their loan through monthly or annual payments, which will prevent the interest on the loan from building up and turning into compound interest over time.

It is also worth noting that you will be advised to speak to your family and next of kin about your equity release plans.

It is incredibly important that they understand what equity release is, what your plans are and what this might mean for any inheritance that they might be in line for or expecting. This is also really important so that they know what to do in the event of your death.

Things You Can Use Your Equity Release On

Below, we outline things you can use equity release funds for:

1. Using Equity Release to Pay Off Your Existing Mortgage

In order to qualify for equity release in Coventry, then you will need to have paid off a large amount of your pre-existing mortgage.

However, if you have some of your mortgage left to pay off, then you might be able to spend some of the equity release you receive on paying off your mortgage.

It is important that you ensure that this is a good financial decision for you, as it is a huge decision and a large financial commitment.

2. Equity Release to Pay Off Debts

If you are currently struggling with debt, then you might be able to pay off some of these debts with your equity release funds, depending on what category of debt you suffer from.

For example, you might be able to pay off any unsecured debts, as opposed to secured debts. Secured debts include things like mortgage payments, whereas unsecured debts include things like bank loans.

Lots of people who suffer from a lot of debt also suffer from poor credit scores, which means that it is often hard to take out loans and get out of debt easily.

This is why equity release in Coventry is a great way of paying off any unsecured debts that have been holding you back over the years.

For more information on paying back debt with equity release, please read our informative and helpful page on releasing equity whilst in debt.

3. Equity Release for Pay for Home Improvements or Extensions

Lots of people aged over 55 years old opt to spend their equity release funds on home improvements or extensions.

This is usually because they plan on staying in their home for a number of years, which means that they will have to adapt their house for their current and future needs as their family potentially grows, or as they get older and need more help around the house.

It is also important to remember that by doing so, they will be increasing the value of their house by making alterations like this, which will increase the value of their home in the future, when they pass away and their family and next of kin go to sell the property.

4. Equity Release for a Second Home

The great thing about equity release in Coventry is that you are able to spend your equity release on whatever you want, as there are no real restrictions on what you can spend your equity release on.

If you want to invest your money, then investing your equity release funds in property is a great option. However, this will mean that you need to opt for a certain type of equity release scheme.

If you are hoping to spend your equity release money on a second home, then you will need to make this clear to your equity release advisor at the very start.

If you are considering equity release in Coventry and want more information, then speak to a member of our Equity Release Warehouse team for advice and support on what type of plan you would qualify for.

The Advantages Of Equity Release In Coventry

As discussed above on this page, there are a number of different advantages when it comes to equity release in Coventry.

For example, by releasing equity from your home in Coventry will mean that you are able to boost your retirement funds and income, as well as hopefully increasing your inheritance for your family and next of kin.

You are also able to spend your equity release in a number of different ways, including home improvements, a holiday, a nice car or by using their money to help their loved ones with any debts, any University fees or house deposits.

You do not have to pay back the loan until you pass away or move into long-term care, and can opt to pay the interest on your equity release loan early so that you avoid compound interest.

You will also benefit from a no negative equity guarantee, which is something the Equity Release Council ensures is in place which will mean that your family and next of kin are not left in debt after you pass away or move into long-term care.

You will also be able to protect some of your equity within the house with inheritance protection, to make sure that you are still able to leave a considerable amount of inheritance to your loved ones after you pass away.

What are the Alternatives to Equity Release Schemes?

At Equity Release Warehouse, we understand that not everyone will qualify for an equity release scheme. You can read about the potential drawbacks of equity release here.

Whilst we believe equity release is a great option, there are some alternatives that you might want to consider if you do not qualify for equity release in Coventry.

Some of these alternatives are listed below for you and are available on our page here.

1. Downsizing

If you are struggling financially, then you might want to consider selling your current property for a smaller property.

By downsizing your property, you will sell your house to buy a cheaper one, putting some money back in your bank for you to spend.

You are then able to spend this money however you see fit or reinvest that property so that it creates more money and works harder for you in the future.

However, not everyone is in a position to downsize their house. For example, if you still have children or other family members living in your house then this can be a particularly hard decision.

There are also lots of stresses and logistical problems when it comes to buying and selling a house, and is not always something people want to do in later life.

There are also costs associated with buying and selling a house, including solicitor fees which can cost up to £3,000, depending on your particular situation.

2. Selling Your Home to a Relative

If you do not qualify for equity release in Coventry, then you might want to consider selling part of your home to a family member who might be in a position to do so.

By doing so, you are creating your own agreement and arrangement, almost like your very own mini equity scheme.

During this type of agreement, your relative or good friend might loan you some money in return for a loan against your house, which will be repaid to them when you sell the house or move into long-term care.

However, it is incredibly important how careful you must be during one of these arrangements, and it is absolutely necessary to involve and engage with a solicitor in this circumstance so that they can draft up a formal contract and agreement for all engaged parties to sign.

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 Coventry:

1. Age UK Coventry

Address: Gilbert Richards Centre, Broadway, Earlsdon, Coventry CV5 6NT

Telephone: 024 7667 2911

Website: http://www.ageuk.org.uk/coventry/our-services/

2. Coventry Independent Advice Service

Address: Oakwood House, Cheylesmore, Coventry CV1 2HL

Telephone: 024 7652 1100

Website: https://covadvice.org.uk/

3. Age UK Coventry & Warwickshire

Address: 4 Earlsdon St, Earlsdon, Coventry CV5 6EG

Telephone: 024 7671 7833

Website: https://www.ageuk.org.uk/coventryandwarwickshire/

3. Age UK Coventry and Warwickshire

Address: Alvyn Smith House, 7, Warwick Row, Coventry CV1 1EX

Telephone: 024 7623 1999

Website: https://www.ageuk.org.uk/coventryandwarwickshire/

4. Citizens Advice Coventry

Address: Kirby House, 15 Little Park St, Coventry CV1 2JZ

Telephone: 024 7622 3284

Website: https://www.coventrycitizensadvice.org.uk

Get in Touch with Equity Release Warehouse

If you are considering equity release in Coventry, then speak to one of our professional and trained advisors for advice on how to take the first steps.

Our advisors will also use our very own equity release calculator tool to calculate what schemes are best for you and how much equity you would be able to release.

Start by calling us for free on 0330 058 1579 or by visiting us online to request a free equity release brochure.

Access help and advice today across Coventry in Allesley, Wyken, Coundon, Keresley, Whitley, Longford, Canley, Foleshill, Baginton, Exhall, Walsgrave, Corley, Kenilworth, Fillongley, Brandon, Shilton, Bubbenhall and Bulkington.