How much equity release can I get? This is the question many people are asking themselves. It’s a good question, and one that deserves an answer. However, there isn’t just one answer that fits everybody. We we will discuss how to get the most from equity release and equity release costs – including tips from financial advisors who have been in your shoes before.
We will start by breaking equity release down into two categories: lifetime mortgages and home reversion plans. Lifetime mortgages are basically like a bank loan, with the interest rate based on your age. You use this to pay off debts or cover care costs – or you can save it for retirement if you wish. Your property doesn’t have to be sold when you die but is used as security for the mortgage lender; they can then sell it after your death in order to get their money back from the sale of your house (although there may be implications should somebody move into your house).
The other option available is a home reversion plan where an investor buys part of your property and pays some rent while they own it, before returning ownership at no extra cost when you die. The downside to this is that the value of your property may fall while they own it, and there are more fees than for a standard lifetime mortgage.
Another thing to consider about equity release plans is how these options compare with other types of help available from local authorities in terms of getting care paid for or covering debts like utility bills during difficult times. Finally, we’ll talk about how much money can be released using equity release – which will depend on factors such as where you live (for example people living in London tend to have higher life expectancies compared to those who live further north), what type of plan you choose (lifetime mortgages tend not only give access to larger amounts but also save on inheritance tax)