Equity Release Nottinghamshire - Lifetime Mortgage Near Me

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

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Equity Release Nottinghamshire & Near Nottinghamshire

If you are interested in equity release Nottinghamshire, you will need to know which options are available to you. The two main options in Nottinghamshire are lifetime mortgages and home reversions.

What is a Lifetime Mortgage in Nottinghamshire & How Does it Work?

A lifetime mortgage is a popular form of equity release that allows you to take out a loan secured against your property and receive either a lump sum or monthly payments for the rest of your life.

There is no obligation to repay the loan as it will be paid back when your Nottinghamshire property is sold by the equity release provider. This will never happen while you are living in the property, as the sale process only occurs when you pass away or move into long-term care.

Each type of lifetime mortgage comes with its own pros and cons in terms of interest rates, repayment policies, what you can spend your loan on, and more. However, you are always guaranteed to be offered a tax-free amount of money that does not have to be repaid.

To be entitled to a lifetime mortgage in Nottinghamshire, the youngest applicant must be at least 55 years old. If you are much older than this, you may be entitled to benefits through the enhanced/ill-health plan.

What is a Home Reversion in Nottinghamshire & How Does it Work?

A home reversion also allows you to access tax-free cash, but instead of getting a mortgage that lasts a lifetime, you sell your property to a provider. You can choose to sell a share of your home or the entire home (1).

Throughout the equity release scheme in Nottinghamshire, you will be expected to stay in your home and use the equity loan however you see fit. There are no purpose-driven plans with home reversion (such as buy to let lifetime mortgages), so you are free to use the money however you would like.

It is important to note that equity release customers who have a home reversion will not be considered the homeowner once they receive their loan, as this title goes to the equity release provider. However, they will still be able to live in their home for the rest of their life.

To be entitled to a home reversion, you must be at least 65 years old, and just like a lifetime mortgage, you must own a property with a value of £70,000 or more.

Will I Regret Taking Out Equity Release Nottinghamshire?

We cannot predict whether you will end up regretting equity release Nottinghamshire, but what we can do is give you advice on how to approach equity release in the safest way possible, which reduces the chances that you will end up regretting it.

Research Equity Release

Make sure you learn as much as you can about equity release before committing to an equity release scheme in Nottinghamshire.

We recommend that you seek advice from a professional equity release adviser in Nottinghamshire, and make sure they explain all of the features and risks of equity release.

If you do not delve into the disadvantages of equity release, you may be taken aback by challenges that you didn’t expect, and we would prefer that you are prepared for these challenges so that you can make sensible decisions regarding your finances.

Learn About the Different Equity Release Plans

There are many different equity release schemes available in Nottinghamshire, so you should be familiar with them before you select one specific plan (2). This is not to say you have to become an expert in every possible plan, as you will know some plans are not for you right off the bat, but you should do some research.

For instance, if you are interested in a second home plan, you should be aware that you absolutely have to spend your equity loan on a new property either in Nottinghamshire or elsewhere. You also have to spend a set amount of time in the second home, which is usually six months of the year.

Another example is that if you want to opt for an income plan, you must be ready to receive monthly instalments of the loan rather than a lump sum. If you take out equity and then suddenly change your mind and decide you need the money immediately, you won’t be able to do this if you have already selected an income arrangement.

Who Is the Target Of Equity Release in Nottinghamshire?

The target of equity release in Nottinghamshire is people in their later years (from 55 years onwards) who have valuable properties and yet are in need of more cash. This means lots of people who take out equity in Nottinghamshire are not earning a high income, or were not earning a high income before they retired.

Having said that, as long as you meet the eligibility criteria for Nottinghamshire equity release, it doesn’t matter whether you fit into the target market exactly. It’s possible that you earn a good amount of money but you want to use equity release to access even more funds to improve your quality of life.

Perhaps you have enough funds to live comfortably but you have always dreamed of purchasing a property to rent out, and you need an equity release loan to facilitate this. Or maybe you were in a well-paying job and you assumed your pension income would be enough to sustain you, but you have realised you have had to cut back on your spending in order to get through your retirement.

Whatever your situation, as long as you are 55 years old (or more) and you are a homeowner with a property worth £70,000 (or more), you could be entitled to an equity release loan.

Can I Make Repayments On My Equity Release Loan?

Generally, we would advise not making repayments on your equity release loan, as the scheme is supposed to last until you die or go into care permanently. In some cases, you aren’t actually permitted to make repayments, so this is something to consider before you commit to a scheme.

Often, if you select a plan that isn’t designed for repayments, the equity release provider will charge a penalty fee of up to 25% of the amount you have borrowed.

If you do choose a scheme that allows repayments, you will be able to pay back the money either on a regular basis (such as every month) or whenever you feel able to. The best way to do this is to take out a voluntary repayment plan or an interest-only plan.

Can I Move House With Equity Release in Nottinghamshire?

The answer to this question depends on the equity release lender that you go with, as well as the plan that you select.

As you are supposed to stay in your property for the length of the equity release scheme, most lenders will discourage you from moving. However, if they are affiliated with the Equity Release Council (ERC), they will be required to provide you with an alternative home.

Keep in mind that you will not be able to select any property to move into, as the lender will have to approve the new home. What’s more, your loan amount could change as the value of the new property will be different.

What Happens If My Current Property Is Not Eligible For Equity Release in Nottinghamshire?

Your property must be worth £70,000 to be considered an eligible equity release property, and it must also be in a suitable condition. This is because the equity release lender needs to trust that they will profit off your home when they eventually sell it.

If your home does not fit this criteria, you may not be able to release equity. If your ineligibility is a result of the property being in a poor condition, you could consider taking out a traditional loan to refund renovations or downsizing to a better-quality home in Nottinghamshire.

If you cannot find a suitable property in Nottinghamshire, you could always find a property elsewhere and then release equity on this property. Contact us to find out whether we would be able to help with this, as it depends on the location you settle on.

What Happens If I Do Not Meet the Minimum Age Requirement For Equity Release?

If you are under 55 years old and you would like to release equity from your Nottinghamshire home, you are unfortunately unlikely to be considered for an equity loan.

If your partner is over 55, they could make an individual application that you could benefit from. However, keep in mind that if they do this, when they eventually pass away or go into care, you would not be able to stay in the home.

What Makes Equity Release Warehouse Stand Out & Why Should I Consider a Free Consultation?

As you will see on our home page, we work in many different towns and cities in the UK, so wherever you are, we are likely to have an adviser to help you, and if we don’t currently, we probably will soon. This means our services are widely accessible, which is great news for potential consumers of equity release.

Our advisers are experts in every single type of equity release, so no matter which plan you end up settling on, you will get expert advice on how to make the most out of it and how to ensure the equity release process in Nottinghamshire is as safe as possible.

Our blog will show you that we do not simply consider the basics of equity release when talking to our clients, but we tackle tricky questions relating to the legal issues of equity release, the implications on inheritance, and the varying interest rates depending on the plan.

We are not stingy with our services, which is why we offer a free initial consultation to all customers, whether you are brand new to equity release or you have been researching for years. We also have a page where you can request a personalised quote, as well as a free equity release calculator where you can figure out how much money you could release from your home.

Overall, we know all there is to know about equity release in Nottinghamshire, so we are equipped to train you in the various advantages and disadvantages. However, we are also sensitive to the fact that many people are wary of equity release, and therefore we are open and honest in discussing its pros and cons.

Will My Family Be Worse Off If I Take Out Equity?

It is a common misconception that releasing equity will leave your family in a precarious situation. We do not want anyone to put off equity release for this reason, as it is certainly possible to release equity and still look after your beneficiaries.

With most lifetime mortgages and home reversions, you can implement inheritance protection, which means some of your funds are saved for your family. The number of funds will depend on how much income you have and how much money you borrowed.

Another important point is that you could spend your Nottinghamshire equity loan on your family and friends, and the money will be tax-free for seven years. Some ideas of how to help out your loved ones are: helping them pay their bills, paying for their education, paying for holidays, and helping them pay rent.

We advise you to keep your family in the loop with the equity release process, as they will be affected by it. We do not want to pretend that taking out equity won’t affect their inheritance, as it will most likely reduce the amount they inherit, but this doesn’t mean they will be left with nothing.

It’s also worth fully assessing the disadvantages of equity release and the various alternatives.

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 Nottinghamshire:

1. Citizens Advice Nottingham

Address: 16-18 Maid Marian Way, Nottingham NG1 6HS

Telephone: 0808 278 7974

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

2. Notts and Lincs Credit Union

Address: 69 Maid Marian Way, Nottingham NG1 6AJ

Telephone: 0330 004 0842

Website: https://www.nottsandlincscu.co.uk/

What Happens to My Partner If I Take Out Equity?

The vast majority of our equity release customers in Nottinghamshire take out a joint lifetime mortgage with their partner, or opt for a home reversion. This means they do not have to worry about what happens to their partner, as the equity release scheme only ends when both members of the couple have passed away or gone into long term care.

However, if you took the less common route and took out an individual loan, your partner will be required to move out of your home when the scheme comes to an end. They will be prepared for this as your adviser will tell you about how an individual loan could impact your partner.

If you have had a home reversion in Nottinghamshire, your partner will have to move out quite quickly, often in a matter of a couple of weeks. However, they may have more time if you have taken out a lifetime mortgage, as the sale process is longer.

The same applies to any tenants living in your property, though most equity release providers do not allow you to have tenants in the first place, so this is a less common situation.

Find Out More By Contacting Equity Release Warehouse

Please get in touch with us to find out more about equity release in Nottinghamshire. We are always happy to help you make a decision, even if you discover that equity release is not right for you and you would rather boost your retirement income in a different way.

Call us on 0330 058 1579 or request a callback and one of our friendly advisers will be in touch as soon as they can to answer any questions you still have about equity release in Nottinghamshire.

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