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Lifetime Mortgage & General Equity Release Advice in Solihull
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.
Equity release Solihull (and across Birmingham) provides a multitude of benefits that cannot be accessed through any other scheme.
Each customer’s reason for getting equity release in Solihull is personal, but there are some key benefits that consistently draw people to this unique scheme:
To get started with equity release in Solihull, customers don’t have to spend a huge amount of money on advice or administration.
Plenty of equity release in Solihull advisers offer free services, and many equity release in Solihull lenders charge low administration fees.
When a customer is deciding between equity release in Solihull and another scheme, the low cost of releasing equity may convince them to pursue this unique process.
When you apply to get equity release in Solihull, you do not have to demonstrate that your income is high. Equity release involves secured debt, so it is enough to allow the provider to sell your property when you pass away.
Even if you are very cash poor, as long as your home meets the criteria for equity release in Solihull, you could be approved for the scheme.
Equity release in Solihull consumers can attest to the generosity of the scheme. If you qualify to take out equity, you can borrow a large amount of money to fund your later life.
For many customers, this solves a range of problems that were threatening to negatively affect their retirement.
For example, after getting equity release in Solihull, they may be able to get a brand-new car, pay off their outstanding mortgage, or carry out home improvements.
You may assume that equity release Solihull consumers have to leave their home after getting a loan, but this isn’t how equity release works. Fortunately, customers stay in their property for as long as they want to, and they are not charged any rent.
Some customers prefer to move home after a while, and most new equity release plans will allow them to move to a suitable alternative home without facing charges.
However, there is never any need for a customer to move home, and it is usually preferred that they stay in their current property for the rest of their life.
Some people have only heard of the equity release lifetime mortgage, but this is far from being the only advantageous equity release in Solihull product. With home reversion plans and eight different forms of lifetime mortgage, the choice for new customers is excellent.
Equity release in Solihull homeowners can choose between diverse plans that are tailored to different situations, and there is also the opportunity to personalise the chosen plan e.g., choosing a set amount of interest to repay or getting inheritance protection.
Drawdown lifetime mortgages, income plans and home reversion schemes are just a few examples of equity release products that can be tailored to suit the customer’s individual circumstances.
There is no better benefit than this. People who qualify for equity release in Solihull can access a cash lump within 6-8 weeks, regardless of their income.
This means people who are in need of the funds don’t have to wait around while their current situation becomes less and less stable.
Some customers go into equity release in Solihull knowing just what they want to use their loan for. Even if it isn’t for an emergency, it’s great to know that the money will be available in just 1-2 months.
Although equity release Solihull has so many advantages, there are also elements of the scheme that make it risky for some customers.
Most of these risks can be mitigated, but it’s important to understand that some people are simply not suited to equity release in Solihull.
The common risks associated with equity release in Solihull are:
Compound interest is possibly the biggest risk of getting equity release in Solihull. For every year that you are an equity release consumer, interest will accumulate based on the initial loan amount, plus all other existing interest.
There are multiple options when it comes to mitigating the effects of compound interest.
You can protect your loan by getting inheritance protection and a no negative equity guarantee.
This won’t reduce the compound interest, but it will ensure your family will be looked after in spite of the interest debt.
Another option is to repay the loan (or repay the interest on the loan) with a voluntary repayment lifetime mortgage or an interest only lifetime mortgage.
It isn’t obligatory to choose an equity release plan that does not allow monthly repayments (including full and partial repayments).
As you get older, you will most likely start to plan your inheritance. Financial schemes like equity release will impact how much inheritance you can leave, as you will have fewer funds if you have borrowed money.
Equity release in Solihull is particularly impactful on inheritance as it lowers the value of your estate. Some people find that it’s better to draw on other forms of financial aid that do not significantly impact inheritance.
Otherwise, you can secure inheritance protection as part of your equity release plan.
Yet, something equity release in Solihull has a positive impact on is inheritance tax. With a lower-value estate, it is more likely that the money your loved ones inherit will not be liable for inheritance tax (1).
Prospective equity release in Solihull consumers who are in receipt of means-tested state benefits may find that the scheme is too risky to get involved with. This is because it can reduce the benefit funds they are entitled to.
If a customer accesses a particularly sizeable loan, their savings will increase significantly, and this could cause them to no longer be eligible for means-tested state benefits. Other government benefits (that do not require income checks) will not be affected.
This isn’t always a risk of equity release in Solihull, as many customers establish more financial security by releasing equity, even if it means their means-tested benefits are taken away.
The consequences are different for everyone, but an equity release adviser can help you to explore the different suitable options.
It’s likely that you’re considering releasing equity with a partner, as this is what most people do. However, some people choose to get equity release in Solihull in their own name, and their partner does not get involved.
The reason this can divide families is that equity release is a serious commitment that can affect not just the consumer, but their entire family.
For example, in many cases, customers can only move into a new property that is approved by their equity release company. If their partner never agreed to equity release, they would still have to abide by the terms and conditions as they could not move into any property of their choice with their spouse. They would also not be able to sell their current property.
Pensions are unaffected by equity release in Solihull. Whether you have a State Pension, workplace pension or private pension, the amount of funds held in any of these will stay the same when you release equity. Your retirement income cannot hold you back from getting an equity release mortgage.
Equity release lenders are not put off by people with valuable pensions. Although it may not be popular to release equity in this situation, you will still be eligible to take part if you choose to do so.
Anyone who receives Pension Credit must speak to an equity release adviser about how equity release in Solihull could affect this benefit. As a means-tested benefit, there is a chance that releasing equity would remove the homeowner’s entitlement to this financial aid.
You must be at least 55 years old to qualify for equity release in Solihull. You will not find an equity release lender with a lower minimum age, as this is a rule that all providers abide by.
It is possible to be ineligible for equity release in Solihull due to exceeding the maximum age requirement of a particular company. However, as there is no standard maximum age, we advise our clients to contact several different companies before giving up on equity release in Solihull.
It is not always a disadvantage to be an older equity release customer. The enhanced lifetime mortgage is proof of this – it offers unique benefits to people who meet certain requirements, including being above a certain age (the specific age depends on the product in question).
Adding up all the separate fees, equity release in Solihull tends to cost around £2000. You will hear stories of equity release plans that are much cheaper or more costly than this, and this is mainly because you can decide how much or little you’d like to spend.
While you can’t always avoid high costs, it may be possible to access affordable equity release in Solihull by going after free equity release professionals, affordable solicitors, and a lender that is known for budget-friendly administration fees.
As long as you seek out regulated people who have great reviews, there’s nothing wrong with looking for a great deal. That said, the cost of equity release in Solihull is not a huge issue for most people, as you get a large loan soon after paying the fees.
We have explained that you can release equity alone, even if you’re in a marriage or long-term relationship. The same applies when it comes to your relatives – they don’t have to agree with your decision, and you may even decide not to tell them.
For most people, it’s better to discuss the possibility with your loved ones. There might be a key drawback that you haven’t yet identified, and honest discussions with family can open your eyes to these potential risks.
We recommend widening this discussion further by meeting with an equity release in Solihull adviser. They will be able to bust any myths that your family may believe about the scheme, while being open about the genuine risks.
A series of regulatory bodies work hard to keep equity release in Solihull safe. They are in charge of educating both lenders and customers about the scheme, dealing with complaints, and taking action against equity release that does not meet their requirements.
Some of the regulators that deal with equity release in Solihull are:
Not all equity release lenders are affiliated with regulators, and this can be dangerous for their customers. When you contact an equity release in Solihull provider, check that they are regulated. Well-known companies tend to fall into this category, such as Liverpool Victoria, Legal and General, and Key Partnership.
Let’s be clear: you will not find one equity release plan that is beneficial for everyone. We encourage our clients to look into all possible equity release products before making a decision. If the first product you come across doesn’t suit you, keep looking.
Home reversion plans are certainly not suitable for all. In fact, most equity release consumers choose lifetime mortgages over home reversions.
Common complaints about home reversion schemes include:
However, there are also plenty of benefits of home reversion plans, making this scheme better for some customers. Reasons to consider this type of equity release include:
Equity Release Warehouse provides a free initial telephone assessment to all our prospective clients.
Even if you aren’t sure whether you are eligible for equity release in Solihull, it’s worth giving us a call on 0330 058 1579 to get a clearer understanding of your suitability for this scheme.
Our equity release advice is practical, professional, and personalised. We do not pressure you to make a decision about equity release in Solihull, and we describe the scheme as accurately as possible, including any risks that may affect you.
Equity release in Solihull takes longer at busier times of year, so get on top of the long queues by getting in touch with our committed team as soon as possible.
Get help now across Solihull in Bickenhill, Blythe, Castle Bromwich, Chelmsley Wood, Dorridge and Hockley Heath, Elmdon, Kingshurst and Fordbridge, Knowle, Lyndon, Meriden, Olton, Shirley East, Shirley South, Shirley West, Silhill, Smith’s Wood and St Alphege.
[1] How the over-50s are using equity release to avoid inheritance tax https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/over-50s-equity-release-avoid-inheritance-tax-2743755
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