Frequently Asked Questions

Do I qualify for equity release?

You will usually qualify for an equity release scheme if:
– You and your partner are aged between 55 and 95.
– You own a home which is worth at least £60,000.
– If you have a mortgage, it is small enough to be fully repaid by the equity release scheme.

How much cash would be available to me?

This depends on your age, property value and the type of equity release scheme. For example, an interest only mortgage will normally allow you to raise up to 75% of the property value. A Roll Up mortgage will allow you to raise between 25% and 57% of the property value however the percentage will be restricted by the youngest applicant. A Home Reversion plan would allow you to sell a share in your property of between 30% and 100% in exchange for a discounted (or non discounted) sum of money. The older you are when you take out any plan, the more you will receive. You may wish to use our equity release calculator or call us for details on exactly what is available to you.

Can I move home in the future?

Yes, however your new property will need to be approved by the plan provider and they will have their own set of terms to be met.

Would my state benefits be affected?

Releasing cash from your home could affect your entitlement to state benefits. Means tested benefits such as Pension Credit, Council Tax benefit and some health benefits like free prescriptions. Capital held in savings or an increased income could affect these benefits. We will tell you if releasing capital from your home is likely to affect any state benefits that you receive.

What happens if the value of my house changes?

If the value of your home should fall you would be protected by a ‘no negative equity’ guarantee which ensures that you would never owe more than the value of your home. If house prices rise you would benefit unless you had transferred 100% of your property under a home reversion plan.

Will my children or grandchildren end up with debts?

No. Any equity release scheme that we recommend will come with a no negative equity guarantee so you would never owe more than the value of your home.

What happens if I want to repay my loan?

Equity Release schemes are not designed to be repaid until the death of the last surviving borrower or exit into long term care. Early repayment charges may apply on lifetime mortgages if you repay the loan before this time. Home Reversion plans would be very expensive to reverse as you would have to repay the full market value of the share of the property transferred under the scheme.

What happens if my partner dies?

Any plan recommended by Equity Release HQ give you both the right to live in your home for as long as you wish. This is because we only recommend plans approved by Safe Home Income Plans.

Can I purchase a property with an equity release plan?

It is possible to release equity and buy a 2nd property and still live in the property on which the lifetime mortgage has been arranged.

Can I release equity from a retirement property or a second home?

Yes it is possible to release equity from a retirement home. Equity Release schemes can only be taken on your main residence however, so it’s not usually possible to release cash from a second home, or a home outside of the UK.

I have already taken out an equity release plan, can I release more cash?

Possibly. It depends on the type of plan and the amount you have already released as well as the equity remaining in your property and your age. We can advise you whether a top up would be available on your existing equity release scheme or by switching you existing plan to a new provider.

How long will it take to release cash after applying for an equity release plan?

It normally takes between 6 and 12 weeks from the application stage to completion when you will receive your capital.

How will the value of my property be assessed?

Your property will be valued by an independent chartered surveyor to ascertain the true value of your property. The equity release provider will usually arrange the valuation by the surveyor.

 

Contact Us:

Tel: 01206 700321   Email: admin@responsiblefinancialplanning.co.uk

1 George Williams Way, Colchester, Essex, CO1 2JS