In this article, we will explore the advantages and considerations of equity release plans, which are commonly recommended for individuals aged 55 and above.
Equity release in Beverley allows homeowners to unlock tax-free funds from their primary residence. One of the key features of equity release in Beverley is that you retain full ownership of your property.
We will delve into the benefits and potential drawbacks of equity release, providing you with a comprehensive understanding of this financial option. By examining both the pros and cons, you can make an informed decision about whether equity release in Beverley is the right choice for you.
Pros of Equity Release in Beverley
- Financial flexibility: Equity release offers the flexibility to access funds as a lump sum or in smaller amounts as needed. By taking money only when necessary, you can potentially reduce the amount of interest payable. After thoroughly assessing your circumstances and goals, we will provide recommendations on the most suitable approach to minimise interest costs.
- Retaining ownership: Whether you choose a regular mortgage, retirement interest-only mortgage, or lifetime mortgage (equity release) plan, you will retain 100% ownership of your property. The outstanding loan is typically repaid upon your death or when you enter long-term care. You have the right to continue living in your property or downsize if needed until these events occur.
- No negative equity guarantee: All lifetime mortgage plans come with a no negative equity guarantee. This means that when your property is eventually sold, after your passing or transition into long-term care, your estate will never owe more than the sale value of the property.
- Interest payment options: With lifetime mortgages, you have the flexibility to choose how you manage interest payments. You can opt to pay monthly interest, make no monthly payments, or find a middle ground to minimise the accumulation of interest. Our equity release advisor in Beverley will guide you in determining the best approach for your situation.
- Inheritance planning: If desired, we can collaborate with your financial advisor to incorporate equity release into your inheritance tax planning strategy. This ensures that your estate’s financial affairs are aligned with your long-term objectives.
Cons of Equity Release in Beverley
- Limited or poor advice: It is important to be aware that some clients have received insufficient or restricted advice solely focused on equity release plans. To ensure comprehensive guidance, always verify that your equity release advisor in Beverley offers advice on the full range of later life lending solutions and operates independently. We take pride in being one of the few UK companies capable of providing advice on the complete range while maintaining independence.
- Should be a last resort: Before considering equity release in Beverley, your advisor should explore other later life lending products such as regular mortgages, retirement interest-only mortgages (RIOs), and hybrid products. These alternatives may better suit your circumstances and should be thoroughly evaluated before an equity release recommendation is made.
- Impact on benefits: It is important to note that releasing equity could potentially impact means-tested benefits you currently receive. Your advisor will assess the potential effects and provide guidance to help you make an informed decision.
- Reduced inheritance: Choosing to release equity may result in a reduced inheritance for your children or beneficiaries. To maximise your inheritance, you can explore the option of releasing equity in smaller increments, carefully managing the amount released.
- Early repayment charges: Equity release in Beverley is a long-term lending solution, and most products include early repayment charges, typically applicable within the initial ten years. It is essential to consider these charges when evaluating the suitability of an equity release plan. Your advisor will explain the terms and conditions associated with early repayment charges.
What should be considered first, before equity release in Beverley?
At Beverleymoneyman, we pride ourselves on being among the select few mortgage advisors in the UK who can assess the entire range of later life mortgage products.
In considering the available options, we prioritise regular mortgages, which, in certain cases, can extend until the age of 85. We also explore the diverse array of specialist retirement interest-only mortgage products (RIOs) and lifetime mortgages, including equity release plans.
Our dedicated later life team will carefully evaluate your unique circumstances and recommend the most suitable product or combination of products. It is essential to remember that equity release in Beverley is not the sole solution, and there may be another option that better aligns with your specific needs.
Please note that equity release in Beverley plans allow you to release equity solely from your primary residence and not from a second home or buy to let property. In such situations, regular mortgage options may be more appropriate.
How Clients Use Equity Release Funds
Our clients have various motivations for considering equity release in Beverley, with common reasons including home improvements, managing financial changes due to late-life divorce, paying off an existing mortgage, providing financial support to family members, and supplementing retirement income.
Equity release plans offer flexibility, allowing you to access funds either as a lump sum or in smaller increments whenever needed. Our knowledgeable equity release advice team in Beverley will carefully assess your circumstances and guide you towards the most suitable approach.
The Equity Release Process
To get started, simply book your free, no-obligation consultation with our dedicated later life team in Beverley. You have the convenience of booking either by phone or online.
During this consultation, we will address any queries you may have and provide you with an overview of the available products, associated fees, and the amount you can potentially release.
Once you’ve had your initial meeting and decide to proceed with us, your mortgage advisor in Beverley will arrange a more in-depth follow-up session. This meeting will delve into the details, ensuring you are fully prepared for the application process.
Rest assured, we are committed to making the journey as stress-free as possible for you. We’ll assist you with every step, including arranging solicitors and navigating any valuation or legal requirements that may arise.
Involving Your Family
When it comes to equity release in Beverley, we highly recommend involving your family members right from the start. Their support and input can be invaluable during the application process, and they often bring up important questions and considerations.
Having your family members involved will provide you with reassurance that you have chosen the right company and will enhance the overall understanding of the benefits and potential drawbacks of the plan.
We welcome and encourage your family members to participate in the discussions, and we are more than happy to address any questions or concerns they may have.
With our video software, it’s convenient to include multiple family members in the calls and discussions, ensuring everyone is well-informed and involved in the decision-making process.
Book a Free, No-Obligation Consultation!
If you’re ready to move forward, we are here to assist you every step of the way. You can easily reach out to us by phone or book an appointment online to book a free consultation focused on later life mortgage options.
During the consultation, we will address any inquiries you may have and provide personalised recommendations tailored to your circumstances. Rest assured, we only require your ages and address for the call, ensuring a hassle-free experience.
To accommodate your busy schedule, we offer evening calls that can be adjusted to work around your work commitments or childcare responsibilities. We are committed to making the process as convenient as possible for you.
To understand the features and risks, ask for a personalised illustration. Equity Release in Beverley may come in the form of a lifetime mortgage or home reversion plan.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.
Date Last Edited: January 17, 2024
