Equity Release: Top 7 Facts

Posted by Mudassar Ali on June 2nd, 2018

Being in the UK, it is not surprising to see many residents making use of equity release as they begin to enter the old age. If you too have been thinking along the lines of getting the equity released against your home, then these seven facts that we have lined up are sure to make things easier for you.

Fact #1: It is regulated
To help ensure that all the candidates receive the best deal for their homes and are not made to suffer, there is a regulation authority overlooking all the applications. Apart from the Council, you also have the financial conduct department regulating the lenders.

Fact #2: No tax on money
When you get money from home, there is no tax levied on this equity release. The whole amount goes into your bank accounts as it is and is all yours to be used the way you like.

Fact #3: The Minimum limit
When considering this option, make sure that your property meets the minimum criteria as most of the lenders will not be accepting your property if it’s worth is less than £70,000.

Fact #4: There is an Upper limit
Most of the times, the lenders keep an upper limit on the amount of money you can get against your home in equity release. In general cases, the limit is capped at 55%. However, the plan may vary depending on your age, the health plan you follow and the property’s overall value as well. In certain cases, the lifestyle is also taken into account.

Fact #5: Own your home
Against the common misconception, when you go for the equity release, you can still own your home and continue to live there depending on the terms that you have agreed to. You can always read more about the various plans available in the market that can make this possible.

Fact #6: Minimum age requirement
Not everyone can avail the benefits of the equity release. The lenders of the equity release prefer the age of their applicants being above 60. However, certain plans can help you get accepted even if you age around 55 years.

Fact #7: Health and lifestyle are taken into account
Did you know that if you are in the habit of drinking or smoke regularly, there are higher chances of you being able to release more money out of the equity release plan? Same is the case if you suffer from any health condition like diabetes or hypertension. Thus, when applying for equity release, it is common to see the lenders digging deeper into your lifestyle and overall health to get better insight.

These are just some of the facts that you should know about before you get in touch with a company to finalize a plan for equity release. The more you have looked into the facts, the better the chance that you will end up with a plan that is most profitable for you.

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Mudassar Ali

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Mudassar Ali
Joined: November 22nd, 2017
Articles Posted: 38

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