Equity Release plan
Many people make huge mistakes when dealing in this area. Mistakes that can cost you and your family a great deal of money.
Many retired people who manage on a small pension and limited savings are also living in properties which have soared in value in recent years and with the average house price in England and Wales now standing at £224,064 (Land Registry July - Sept 2008), people may be not be aware of the true value of their home.
Equity release plans are a way of unlocking this wealth. These schemes essentially allow you to borrow money against the value of your home, with the debt being repaid from the sale proceeds after your death. Whatever scheme you go for, you’ll be able to carry on living in your home until you die or move into long-term care, at which point it will be sold. If you live with your partner or spouse, your home won’t be sold for as long as the surviving partner lives there.
Who are they for?
- Minimum age 55.
- Minimum advance £15,000.
- Minimum Property value £100,000.
- No outstanding mortgage (or it must be cleared by equity release).
Do not make the mistakes others make, call us now to get thorough, unbiased advice.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
Example of how it works:
Mr and Mrs Smith – aged 65 and 64
Property Value £175,000
Amount required £ 23,000
Reserve amount to call on in future £ 22,500
So total borrowing available is £ 45,500*
Valuation fee (paid on application) £170.00
Arrangement fee to lender (paid from loan) £500.00
Legal Fees (via specialist legal company £375.00**
* As you draw down the money required so the interest due on that portion starts to ‘roll up’ in the background. When the property is eventually sold (death/long term care etc) then the £23,000 plus rolled up interest must be repaid from the sale proceeds. At 15 years this figure would be £59,508. The estate to be passed on to beneficiaries (children) would be £115,492 – plus any growth in house prices over that 15 year period.
** these can be higher if your property still needs to be registered.
There may be a fee for mortgage advice, the precise amount of the fee will depend upon your circumstances but we estimate that it will be no more than £500.
It is essential that you get Legal Advice in connection with Equity Release and we support MartinKaye Equishield legal services who offer advice for a flat fee.
We have close connections with Shropshire Council and more recently Bridgnorth Council as a consultant in this area.