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Lifetime Mortgages, Home Reversion, and General Equity Release Advice in Glasgow
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 many of our clients are prospective consumers of equity release in England, you may be surprised to find out that our specialists are also prepared to help you with equity release Glasgow, or elsewhere in Scotland.
The process of releasing equity will be very similar, as the scheme works the same in both countries. However, you will of course have access to different lenders, which can define your experience of equity release.
Another difference is that the Scottish property market is distinct from the English market, so you may find that equity-release consumers in Glasgow receive different loans to homeowners in English towns and cities.
What’s more, if you seek guidance from an equity release adviser and a solicitor, you may have a different experience to someone in England as you could receive slightly different advice (though the same could be said for people living in the same country who select different advisers).
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.
All advisors and lenders are regulated by the Financial Conduct Authority (FCA) and therefore searchable on the Financial Services Register. You are also permitted to complain to the Financial Ombudsman Service if you are not happy about the advice you received when applying for equity release.
The criteria to be eligible for equity release are:
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As we have briefly mentioned, the basics of equity release are the same in Scotland as they are in England. You can still get the same equity release products: a lifetime mortgage or a home reversion plan.
Another similarity is that you are still not expected to pay back the loan until you pass away or move into long-term care, and you still receive either a lump sum or monthly payments.
However, there may be less availability in Scotland than there is in other areas of the UK. For instance, providers sometimes work only in the mainland and not on the islands so you may need to look further to find an equity release lender who would consider your application.
Having said that, the same could be said for a homeowner living in the English countryside, so this is not necessarily a problem specific to Scotland. If you are living in Glasgow, availability will be less of a problem as lenders are more willing to work in large towns and cities.
Another challenge can be finding a lender who approves your property for equity release, as the materials used for housing sometimes differ in Scotland and England, and lenders may be less inclined to approve Scottish properties.
However, this is generally only an issue for the Highlands and Islands, so most homeowners in Glasgow will be able to release equity easily. The reason for this is that some houses in rural Scotland are made with corrugated iron rooves that do not fit the eligibility criteria of many equity release providers.
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Below, we outline the two broad options you have available to you when it comes to taking out equity release:
One of the options that you could pursue is a home reversion, which means selling a share of your home to an equity release provider in Glasgow for less than the market price. This share is expected to increase over time, so that when the house is eventually sold, the lender will profit from the sale.
Throughout this scheme, you will stay in your Glasgow property without paying rent, and you will be able to spend your loan whenever you want to. The loan will be presented to you in the form of a lump sum of tax-free cash, so you will not get monthly payments.
If you have an existing mortgage and you want to release equity, a home reversion could be a good idea as you don’t have to worry about paying off your ordinary mortgage given that you simply need to sell part of your property to a lender.
Home reversions are an unpopular choice compared to a lifetime mortgage.
There are a wide variety of lifetime mortgages available in Glasgow, so it is not simply a case of choosing a lifetime mortgage, but a case of finding the type that is best suited to your needs and your plans for the future.
If you have an existing mortgage and you would like to take out a lifetime mortgage, you could do this by paying off your current mortgage with the equity release loan. Alternatively, if you can find another way to pay off your current mortgage before releasing equity, this is another option.
With a lifetime mortgage scheme, there is no need to pay back your equity loan as it will be paid when your property is sold. This means you can enjoy monthly payments or a lump sum of cash without feeling hurried to pay it all back by a certain time.
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Below, we discuss some of the considerations we feel you should be aware of before taking out equity release:
It may sound obvious, but some people jump into equity release Glasgow without taking the time to truly understand it. When this happens, they may find themselves regretting their decision, and it is not easy to back out of the process once it has been started.
This is why we encourage you to speak to a professional adviser about equity release in Glasgow before making any concrete decisions. This includes talking about the disadvantages of equity release in Glasgow, discussing the different equity release schemes that you could have, and considering what you want your future to look like.
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 Glasgow:
Address: 195c Drumry Rd E, Glasgow G15 8NS
Telephone: 0141 944 2612
Website: http://www.cas.org.uk/
Address: 201 North St, Glasgow G3 7DN
Telephone: 0141 552 5556
Website: http://www.glasgowcentralcab.org.uk/
Address: 30 Main St, Glasgow G40 1HA
Telephone: 0141 554 0336
Website: https://www.cas.org.uk/bureaux/glasgow-bridgeton-citizens-advice-bureau
Address: Side entrance, 95 Morrison St, Glasgow G5 8BE
Telephone: 0141 274 9933
Website: https://www.glasgowcu.com/
Address: 5th Floor, 52 St Enoch Sq, Glasgow G1 4AA
Telephone: 0141 222 2259
Website: https://www.valuecreditunion.co.uk/
Address: 434 Dumbarton Rd, Partick, Glasgow G11 6SB
Telephone: 0141 339 7070
Website: http://www.gwcreditunion.co.uk/
With equity release, there are other expenses aside from taking out a loan that does not have to be repaid yet. You will have to pay for equity release advice, legal advice, financial advice, valuation fees, and various other costs that are necessary if you want to take out equity safely.
If you do not think you will be able to cover these costs, you could always ask for a loan to cover the costs, which means money will be deducted from the loan before it is given to you.
There are also ways of keeping the costs down, as certain firms will be less expensive than others.
Please call our 24-Hour Helpline: 0330 058 1579
It is possible to apply for a Glasgow equity release loan individually. Homeowners without a partner will inevitably have to do this, but even some people who are married decide to take out an individual loan.
One reason for this is if their partner is ineligible for equity release in Glasgow but they are not, they do not want to be held back by the fact that their spouse is not entitled to take out a loan.
The reasons behind this ineligibility are vast, but it may be down to being too young, having a poor credit history, or not being listed as an owner of the current property in the first place.
Luckily, releasing equity isn’t an extremely long process, so you shouldn’t be waiting very long. However, as with any financial process, delays are not uncommon, so you must be prepared for them.
Most equity release customers have to wait around two months for the process to be finalised, but this is dependent on delays, the lender they are with, the area they live in, the type of equity release plan they have applied for, and various other factors.
Please call our 24-Hour Helpline: 0330 058 1579
Below, we discuss some of the positives of equity release:
With an equity release loan, you are free to spend your money on things you may have been dreaming about your whole life, as you do not have to worry about repayment.
This can be incredibly liberating for many homeowners in Glasgow as they have dedicated so much of their lives to working, and they now want to pursue a comfortable retirement.
Many equity release consumers decide to use their loan for home improvements, and this keeps them as comfortable as can be as they adapt to their new retired life.
This is important as you tend to spend more time inside when you aren’t working, so you want to make sure your space is comfortable and suited to your needs. If you are disabled, you could install equipment that keeps you safe rather than having to consider moving house.
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Below, we discuss some of the potential negative effects of equity release we feel you should be aware of when considering your options:
As you are dipping into funds from your property, your family may end up with less inheritance than they would have if you didn’t release equity. This is certainly something to consider if you are keen on leaving your family with a large amount of money.
However, it’s also important to consider your own needs and to decide whether it will be worth it to have more money in retirement even if that means leaving less inheritance.
At the end of the day, your family would still inherit some of your money, and you could even help them out financially as soon as you receive your equity loan.
When you take out equity, any means-tested benefits you are currently claiming may be impacted, as your financial situation has changed. Something to watch out for in particular is your entitlement to Universal Credit.
However, the first £6,000 of your money will not be taken into account when it comes to benefits entitlement, so not everyone who is claiming benefits will have to stop receiving them when they release equity in Glasgow (1).
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No, releasing equity from your Glasgow property will not affect your state pension, as it is not considered income, so you are still able to benefit from regular pension payments.
Many consumers of equity release also receive a state pension, but their pension would not cover their living costs completely, so they need the equity loan as a supplementary income (2).
The amount of money you could be entitled to is dependent on your property’s value, as well as other factors such as your age, the type of property you own, the location you are in, and the condition of your property.
An official valuation will be carried out to determine how much your property is worth, and once this figure is revealed, you will be told how much equity you could release.
For now, use our equity release calculator to get an idea, or request a personalised quote from one of our experienced advisers.
Please call our 24-Hour Helpline: 0330 058 1579
Unfortunately, if you are in this situation, it will be tricky to manage as you have already made a commitment to take out a lifetime mortgage.
In most cases, you will need to pay off your loan early, and this often comes with an early repayment charge. Some lenders will not allow you to do this at all, but if this is the case, you will be informed of this before you begin the process.
If you simply want to move homes, you may be able to do this by transferring your equity loan to a new property in Glasgow, provided that the lender permits this and can find a house that fits their requirements.
Many people who are interested in equity release have a traditional mortgage, so you will not be the only one. If you are in this situation, as we discussed above, you can either use your equity loan to pay it off or pay it off another way before you apply for equity release in Glasgow.
It is a good idea to implement a power of attorney before you release equity as this ensures you have someone you trust to make decisions for you if there ever reaches a point that you are unable to do this independently.
Some equity release plans allow you to get a power of attorney at the same time of equity release, which is great as it means you don’t have to go through two stressful processes.
However, if you have an enduring power of attorney without court protection, your application is likely to be rejected by certain lenders. Read our blog on equity release with a power of attorney to find out more.
Please call our 24-Hour Helpline: 0330 058 1579
Yes, equity release is a safe process that many people across Glasgow are benefitting from. It is regulated by the FCA and the Equity Release Council (ERC) so it is a legitimate process that is carried out in a legal manner. You will benefit from a no-negative equity guarantee (3).
It is possible to approach equity release in an unsafe way, and this may occur if you do not consult a professional financial adviser, as you may not understand the process in detail and this could cause you to make unwise decisions.
You may also jump into equity release in Glasgow without checking your finances, and it is vital that you avoid doing this as you need to know if you can afford equity release and if it will affect any income you are currently receiving.
Yes, you can use an equity release loan to buy a new property, and the easiest way to do this is to request a second home/holiday home plan, but you must be prepared to live in this home at least 50% of the time in order to keep your status as an equity release consumer.
You could also buy a new property in another area or even another country, but we would advise researching property markets and trends before you do this.
For more information about equity release in Glasgow, please call us on 0330 058 1579 or request a callback on our online enquiry form. Our advisers are trained to offer neutral guidance, so they will not pressure you into anything.
During your free consultation, you are likely to be asked questions about your finances and what you would like to get out of equity release, so prepare for this by reflecting on some potential questions.
You may be asked:
We are not here to judge, so we don’t ask these questions to criticise your spending habits or your future wishes. We simply need to know which plan would be best suited to you and your family, and these questions help us to speed up this process.
Access help and advice today across Glasgow in Berwickshire, Dumfries, Falkirk, Fife, Kirkcudbright, Lanarkshire, Lochgilphead, Lothian, Mossblown, Nairn, Orkney, Renfrew, Roxburghshire, Saltcoats, Selkirkshire, South Glamorgan, Tayside, Ullapool, West Lothian and Wigtown.
Please call our 24-Hour Helpline: 0330 058 1579
[1] How Does Equity Release Affect Benefits and State Pensions? https://www.sunlife.co.uk/equity-release/what-is-equity-release/does-equity-release-affect-benefits-and-state-pensions/
[2] Releasing equity from your home https://www.rbs.co.uk/life-moments/home-improvements/equity-release.html
[3] Equity release (Scotland) https://www.nationaldebtline.org/fact-sheet-library/equity-release-s/
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