John Whyte is a specialist in equity release and mortgages, working in Eastbourne and the wider Sussex area. If the majority of your money is tied up in the value of your home and you are over the age of 55, equity release will allow you to access that money as a lump, multiple smaller amounts or a combination of both.
What are the options for equity release?
There are two options for equity release; lifetime mortgages or home reversion plans.
As long as the property is your main residence, a lifetime mortgage allows you to take out a mortgage while continuing to live there and retaining ownership. If you wish to ring-fence some of your property’s value for your family’s inheritance then you can do so, and you can decide to make interest repayments or to let it roll-up. The loan amount plus any unpaid interest will be payable when you move into long term care or pass away.
With a home reversion plan, the scheme provider will buy a percentage of your home in exchange for a lump sum or regular payments (like a lifetime mortgage, you can still ring-fence a portion for inheritance). This percentage will remain fixed, unless you decide to release further equity. You can continue to live in the home without paying rent until you move into permanent care or pass away, at which point the property will be sold and the proceeds are divided according to the proportions of ownership.
How do you know if equity release is the right choice?
As with any significant financial decision, before committing to equity release you should always seek professional, impartial advice from a regulated specialist, which is tailored to your personal circumstances.
I always offer an initial consultation, where I can introduce myself to clients and explain what it means to be an independent adviser. This includes an outline of my service and remuneration system, without any obligation to make a second appointment (we do not charge any up-front fees and this meeting is completely free).
The next step is to understand your personal circumstances and financial situation, usually through an open conversation and formal fact-finding. We can then discuss equity release and how it might apply to your situation in a little more detail. At this stage, I will make sure that you fully understand your options and will answer any questions that you may have.
I will then research the specific schemes that are available, in order to make a specific recommendation for your personal needs and financial situation. If there are any additional factors to consider, such as existing benefits entitlement related to pensions or savings credit, we will address these before continuing.
Only once you are completely happy will we complete an application.
Am I eligible for equity release?
Some people believe that the qualification for equity release is complicated – but in fact it is very simple. Firstly, you must be at least 55 years old, and you must own a conventional home in the UK that has a value of £70,000 or more.
How much can I borrow?
The amount that can be borrowed using equity release depends on a range of factors. Some of the most important factors include the current value of your property, you and your partner’s age and health, as well as the details of the scheme offered by the lender. There may be other factors included such as medical conditions and lifestyle choices might also be a factor.
Equity Release: What will you use it for?
To pay off an Existing Mortgage
Thousands of homeowners across the UK have interest-only mortgages that are due to mature. If you don’t currently have means to repay the capital balance that’s outstanding, or can’t afford to switch to capital repayment, equity release may help.
To Release Cash
Are you hoping to “future-proof” your home with a conversion or refurbishment? Maybe it’s time to replace your car with something more efficient? Releasing equity in the form of a lump sum could give you the cash injection you need.
For a Family Holiday
Lots of people hope to enjoy your retirement with plenty or travel and relaxation. If you’ve found that your income has reduced but your leisure expenses have gone up, equity release might be the perfect way to fund that holiday of a lifetime.
Get in touch
If you are currently living in, or near, Eastbourne and would like to set up a free initial consultation with no obligation, please get in touch. I would be happy to help you understand the options available and how they might be able to support your plans for the future.
Equity Release Sussex is a trading style of TRM Financial Ltd (FCA Ref 725622), an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority (649443). Registered in England and Wales no. 09832887. Registered Address: 70 St. Johns Close, Knowle, Solihull, England, B93 0NH
For Independent Equity Release advice we do not charge any upfront fees however, a fee of up to 1% of the total cash facility arranged is payable (subject to a typical minimum charge of £1,295) on completion for our service in relation to lifetime mortgage contracts plus commission from the lender. The exact amount will depend on the complexity and work involved in your case and will be confirmed by way of a formal fee agreement.
For Independent Mortgage Advice we charge a fee of up to 1% of your mortgage amount payable (subject to a typical minimum charge of £295 payable on application & £300 on completion (£595 in total) plus commission from lender. The exact amount will depend on the complexity and work involved on your case and will be confirmed by way of a formal fee agreement.
To understand the features and risks, ask for a personalised illustration. Think carefully before securing other debts against your home.