4 Important Facts about Equity Release you Should be Aware of
Equity release can help you raise funds for your kids’ education, or pay off other debts, and meet the demands of other family expenses. You may get more information online at responsibleequityrelease.co.uk. There are many conflicting reports on claiming for equity release. That is why some homeowners fail to apply for it. But when you get the facts right, you can take advantage of the funds in old age. You should review the facts on equity release. This way, you will avoid risks and potential loss associated with equity release.
Here are 4 important facts about equity release you should be aware of
#1. Debt can’t be passed on
One of the main worries of senior citizens is that in case they claim equity, they may pass on the debt to the kids or may leave no inheritance to the kids. This is not true. Even in the rare cases where the value of the house has depreciated to cover mortgages, the remaining loan will be written off. In most cases, there is a guarantee for negative equity. You should, therefore, apply for equity release. The minimum age requirement is fifty-five years.
#2. Equity release professional advisers
This should be the first step to take when seeking information about equity release. They will evaluate your property and guide you towards claiming equity release. You will get advice on properties that are not eligible, early repayment charges and your rights after claiming equity release. They may also advise you on alternative options including downsizing or using other assets to raise funds. Through professional equity release advisors, you will get the equity release and continue owning your property. They ensure that homeowners do not suffer financial loss in the transaction. You should seek professional advice from companies that are approved by the Equity Release Council and Financial Services Authority
#3. Restrictions on moving home
This is one of the greatest fears that homeowners have regarding equity release. But this should not be the case. You may still move to another house after your claim for equity release. It’s important to find out from the lender on what basic requirements are needed. This way, you are sure of getting value for your money. In case you opt to downsize, some lenders may ask for an upfront payment of a certain percentage of the loan.
#4. Value amount
How will you know the value of the equity release that you are entitled to? This is one of the commonly asked questions by most homeowners. The professional equity release companies can help you to determine the value of your equity release. You may also use the equity release calculator. The professionals use it. You can easily get the amount that you may claim instantly by using the calculator. This way, you can make financial decisions fast. In case of any disputes or complaints regarding equity release, you may contact FSA for resolutions.
These few tips will help you make a decision. You should consider the benefits of claiming equity release, the impact it will have on your life and other options available before making the final decision.