Equity Release Watford - Lifetime Mortgage Near Me

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

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Equity release in Watford is only available to those aged 55 or over.

Equity release in Watford involves releasing equity from your home, which you are then free to spend on whatever you want.

By releasing equity from your home, you either get a lump sum amount or a drawdown plan. You also get to remain living in your home for as long as you want [1].

Many pensioners get to pension age and need access to more cash.

Whilst moving home and downsizing might be the most straightforward answer, many simply cannot afford to move home and downsize. This is where equity release comes in.

You can release up to 90% of the value of your home and won’t ever be asked to move. You can spend the money on whatever you want, as long as you stick to the terms and conditions of your loan.

The best thing about equity release in Watford is that you do not have to repay a penny of the loan until after you pass away.

Once you pass away, your next of kin will be given 6 – 12 months to sell your home. The proceeds from the sale of this property will then pay off the loan in full.

Hopefully, your house has increased in value over the years that you have been living in it, so it will cover the full loan amount [1].

Like with any loan, you will be charged interest. This interest will continue to roll up each year that your loan continues.

Equity release loans are designed to last for as long as you live, meaning that your interest will compound each year.

Remember, your loan will need to be repaid via the sale of your home. This loan will include the initial loan amount plus the interest that has compounded over the years.

There are two types of equity release in Watford. The most popular, lifetime mortgages allow you to release a set amount of money from your home without selling a percentage of your home or ever being asked to move.

The second type of equity release in Watford are home reversion plans, which involve selling a percentage of your home to a lender in exchange for the equity inside your home.

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Am I eligible for equity release in Watford?

If you are aged 55 or over, own a property in the UK worth at least £70,000 and have already paid off the majority of your mortgage, then you might be eligible for equity release in Watford.

In order to qualify for a lifetime mortgage, which is the most popular type of equity release in Watford, then you need to be aged at least 55 or over.

You must not suffer from any debt, or if you do then you will need to declare them. Your property must be made out of traditional materials and must be valued at least £70,000 [2].

In order to qualify for a home reversion plan, you need to be aged 65 or over.

This is because home reversion plans involve selling a percentage of your home to the lender in exchange for equity, so banks want you to be aged slightly older to ensure they’ll get their money back (your house) as soon as possible.

Remember, equity release loans last as long as you live, so the older you are, the better that is for your equity release lender.

You will only be eligible for equity release in Watford if you are debt free, aged 55 or over and your property is in decent condition.

Your chosen lender will send someone to your home to carry out a home valuation, to determine exactly how much your home is valued at. The higher the valuation, the more you will be eligible to release from your home [2].

If you are unsure as to whether or not you would be eligible for equity release in Watford, then speak to a qualified equity release adviser for more help and support.

They will not only be able to tell you whether or not you are eligible for equity release in Watford, but they will also be able to recommend the best possible lender for you and your circumstances.

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What are the benefits of opting for equity release in Watford?

There are plenty of benefits when it comes to opting for equity release in Watford.

Whilst there are a number of myths surrounding equity release in Watford, the industry has improved over recent years, meaning that the industry has never been more monitored or regulated than it is now [3].

Another major benefit to equity release in Watford is that the interest you will be charged is fixed. This means that the amount of interest you are charged will stay the same for the duration of your loan.

The amount of interest you are charged won’t fluctuate, making it really easy to work out how much you will owe each year.

Likewise, the money you receive from releasing equity from your home is completely tax free.

This means that you won’t be taxed a certain amount when you’re sent the money from the lender via your solicitor.

You are also then free to spend this money on pretty much whatever you want, as long as you are open and honest with your lender from the very start about what this money is going to be used for.

This is because what you plan on spending your money on will impact what type of loan you opt for.

The Equity Release Industry also ensures that all equity release loans also come with a no negative equity guarantee.

This guarantee ensures that if your home decreases in value so much that it no longer covers the loan amount, then you will be protected.

This means that your family will never find themselves responsible for paying off the rest of the loan, as the lender will always be responsible for paying off the difference.

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What are the disadvantages of equity release in Watford?

Any qualified and decent equity release advisers should also make you aware of the risks associated with equity release in Watford, as well as the pros.

Equity release in Watford is a great option for some people, but it is important to recognise that it might not be for everyone.

If you are thinking about releasing equity from your home then you should be aware of the following risks and disadvantages associated with equity release in Watford.

For example, you will be charged interest on your loan. This means that each month and year that you live, your interest will be compounding and growing.

Your overall loan amount will increase a lot the longer your loan continues, which will need to be repaid via the proceeds from the sale of your home once you pass away.

This means that there might not be any money left over for your next of kin once this has been paid off.

Likewise, if you currently receive any means tested benefits, then you might not continue receiving these once you receive your funds.

This is because releasing equity from your home will increase your savings and therefore your eligibility for any means tested benefits.

Even if you do not receive any means tested benefits right now, you should bear this in mind in case you wish to receive these types of benefits in the future.

It is also important to understand that opting for equity release in Watford will include early exit fees.

Most lenders include early exit or early repayment fees as part of their agreements.

Whilst you will never be forced to repay your loan early, most lenders do give you the option to do so in order to keep the amount of interest you are charged at bay.

However, you should be aware that most lenders will limit exactly how much you can repay each year.

For most lenders across Watford and the rest of the UK, this is limited to 10% each year.

This means that you can repay up to 10% of your loan each year, but will be charged for doing so if you wish to repay more than this.

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How long does the equity release process take?

The equity release process usually takes anywhere between 6 – 12 weeks to process from start to finish.

You will kick off the process by talking to a qualified equity release adviser, who will lay out all of the pros and cons associated with releasing equity from your home.

If you wish to go ahead, then your adviser will search the market for the very best deals and interest rates for you.

Once they find the right lender, they will help you to apply for the loan. This is when you will instruct an equity release solicitor to draw up your illustration and paperwork.

It will then take your solicitor and chosen lender a couple of weeks to process everything before sending your solicitor your equity release funds, before passing them on to you.

How quickly this process will take will largely depend on how quickly your solicitor and lender are able to work together.

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Speak to Equity Release Warehouse

If you are interested in learning more about equity release in Watford, then you should speak to a member of the team at Equity Release Warehouse.

Our team of specialists will use their very own equity release calculator to work out exactly how much you might be able to release from your home. Be aware though that this is only an estimate.

Our equity release specialists won’t ever put any pressure on you to release money from your home.

Instead, we will only ever provide you with the information you need to make a decision.

Talk to our team today by calling us on 0330 058 1579 or by searching for us online by going to www.equityreleasewarehouse.com.