Common Questions about Equity Release
What is equity release?
Equity release is a specialist type of mortgage where an individual will give either a percentage or a flat value of their property for cash to a bank but generally not be charged interest on the equity that the yare given The scheme is generally for elderly people of age 55 years and over. The cash can be used for any purpose. Once the individual dies, the loan is repaid at the end or the interest is rolled up and paid at the end
How old do I have to be to get an equity release scheme?
To get an equity release scheme, you normally have to be 55 years old or over. The simple reason being that a lender would want to be repaid at some stage, so a lower age will mean they will need to wait a much longer time. So as a hunch, lenders look at applicants aged 55 years and over
How do I apply for equity release?
Applying for an equity release scheme is typically straightforward. There are no credit checks on your finance profile. There is sometimes a health check. People with poorer health can generally release more equity than those of good health. So the older and the more ill you are, the more equity you can release from your property because the lender thinks that an realistically get their money back quicker.
What are the benefits of releasing Equity from property?
Thee are many benefits of releasing equity form your property. A lot of people have a lot of equity in their property, but not a lot of cash. So releasing equity from your house can help you achieve any number of objectives, whether you release the equity to use in other investments, pay off debt, give money to the family, travel to enjoy a better quality of life and so on.
How long does it take to release equity from a property?
If you are already with a lender then an equity release scheme can be processed fairly quickly. Many lenders offer what is called a further advance which can literally be processed in a matter of a few days. What some people do is go through a remortgage application process, which can take 3 to 4 weeks to get the cash into your account.
Do I need a special lawyer for equity release?
With equity release plans for the elderly, an organisation called SHIP can be used for qualified and professionally approved solicitors on their panel. It is worth checking the SHIP website to find qualified and approved solicitors. These are solicitors who are experienced and know the market well. However, if it is a straightforward case where you are releasing extra equity to pay off debt or looking for extra cash, then a normal conveyancing solicitor can deal with the request easily.