Your Equity Release Questions Answered

  1. What exactly is equity release?

The process of equity release involves freeing up the cash that’s locked into your property without having to sell it and move to a new house. You can choose to borrow against the current value of your property and receive a lump sum or regular payments in return.

  1. How does the process work?

The amount of money you can borrow against your home depends on the value of it and your age. The process differs from a standard mortgage in that you don’t need to make regular monthly payments unless you want to. The mortgage and interest are paid back when the property is sold. For further information, contact an Equity Release Wiltshire specialist. Chilvester can offer advice on all aspects of Equity Release Wiltshire.

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  1. Who can qualify?

You must own your own home and be aged at least 55. It doesn’t matter whether you have an existing mortgage or not, but the property does need to be your main residence.

  1. What can the money be used for?

You can use the money released from your home for anything you choose. Whether you want to complete some home improvements, book a cruise or buy a new car, it’s absolutely your choice.

  1. Can I stay in my own home?

You can absolutely remain in your home for as long as you wish. If you move into care or go to live with family, your home will need to be sold in order to repay the loan.

  1. Is it possible to move house in the future?

It is possible to move your plan to another property that’s suitable. If you choose to downsize and the new property isn’t worth as much, it might be necessary to repay part of the loan. If you don’t want to transfer the plan, the loan will need to be paid back fully and early repayment charges might apply.

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  1. Will my family inherit my debt?

In normal circumstances, any debts from a deceased person are covered from any assets left over, with family receiving the net amount of whatever is left over. There are some equity release products that offer a ‘no negative equity’ guarantee whereby the equity release company agrees not to claim for any assets other than the property in question.

  1. How will my tax and/or benefits be affected?

It is always a good idea to discuss all options with an Independent Financial Advisor as everybody’s circumstances are different.

  1. Will I need to change my will?

As an equity release plan will have an effect on your estate after your death, it’s advisable to get specialist advice as to whether you will need to re-write your will or not.

 

 

 

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