Equity Release Chichester - Lifetime Mortgage Near Me

Lifetime Mortgage & General Equity Release Advice in Chichester
Reviewed by Tom Philips

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Equity Release in Chichester

Equity release in Chichester is available to homeowners over the age of 55 years old, who own a property in the UK worth at least £70,000.

With equity release in Chichester is a form of mortgage or loan. Instead of borrowing the money from a lender, you release the money that has been tied up in your home [1].

You will be releasing the equity inside your home, which includes everything from your initial house deposit, your monthly mortgage repayments (minus the interest) and any added value your house has benefited from.

The great thing about equity release in Chichester is that you do not have to move house or sell up to enjoy some extra cash.

With equity release in Chichester, you get to remain living in your home for as long as you want, and won’t ever be asked to move.

You are also able to spend your equity on whatever you want, including home renovations, treating your family or gifting your money to your loved ones or grandchildren.

With equity release in Chichester, you do not have to repay a penny of your loan until after you pass away or move into care.

Once you pass away or move into a care home, your next of kin(s) and loved ones will have approximately six months to sell your home.

It is these proceeds from the sale of the property that will pay off the loan.

Hopefully, your house would have increased in value over the years, meaning that it will pay off the entire equity release loan [1].

If the proceeds from the sale of your home does not cover the loan amount, then your lender will step in to pay off the difference.

This is called the no negative equity guarantee, and is a standard feature of all equity release loans thanks to the Equity Release Council and Financial Conduct Authority.

As with any type of loan in the UK, you will inevitably be charged interest. With equity release loans, this interest will always be fixed.

This means that despite what happens to the economy, the amount of interest you will pay on your equity release loan will never change.

However, you will need to bear in mind that your interest will compound over the years. This means that you will end up being charged interest on your interest, increasing the overall loan amount substantially.

The two main types of equity release loans are lifetime mortgages and home reversion plans, which each have their pros and cons. If you want advice as to which one you should opt for, contact an equity release adviser.

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What can I spend my equity release funds on?

There are a number of things that you can spend your equity release funds on.

Most people who opt for equity release in Chichester do so because they want to spend the money on home improvements and home renovations.

Not only will this increase the value of your home if done properly, but it will also make your home more comfortable as you age [2].

A lot of pensioners end up getting to retirement age and want to downsize or do up some of their property [2].

However, moving home and downsizing can be incredibly expensive and hard work, especially at pension age.

Likewise, it can take a lot of money to redo a kitchen or washroom.

This is why equity release in Chichester is a great option for anyone wanting to make home improvements.

You could decide to build an extension, to provide you with more space, or you could opt to put in a stair lift, handrails or a washroom downstairs for easy access.

Likewise, others choose to spend their equity release funds on improving their lifestyle in retirement [2].

A lot of people work their entire lives so that they can live an affordable and comfortable retirement.

However, more pensioners than ever are struggling financially. This is where equity release in Chichester comes in.

You might choose to release your money in a drawdown plan, meaning that you would get a set amount of income each month.

This could go towards the weekly food shops, meals out or a nice new car. Likewise, you could sign up to a local health club to stay healthy as you age.

Finally, some people choose to spend their equity release funds on their loved ones.

More and more young people are struggling to get on the housing ladder, with high interest rates and rising house prices.

This is why equity release in Chichester is such a great option, as you are able to gift your money to your children or your grandchildren.

This could go towards University fees or a deposit on a house. This way, you get to enjoy seeing your inheritance get spent.

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What is the no negative equity guarantee?

The no negative equity guarantee is a standard feature of all equity release plans and loans, as set out by the Equity Release Council and Financial Conduct Authority.

The no negative equity guarantee ensures that even if your house decreases in value significantly, your loved ones and next of kin(s) will never be responsible for paying off the difference.

Hopefully, you won’t find yourself in negative equity, as your house should increase in value during the duration of your equity release loan. If you do, then your lender will be responsible for paying off the difference.

All equity release loans should include the no negative equity guarantee, as it should be a standard feature of all equity release loans.

If you are unsure as to whether or not your equity release loan contains a no negative equity guarantee, then you should check in with your equity release adviser for more information.

Please call our 24-Hour Helpline: 0330 058 1579

How much does equity release in Chichester cost?

If you are considering equity release in Chichester, then you will need to be made aware of the associated costs.

There are a lot of set up costs associated with equity release in Chichester and across the rest of the UK.

These initial costs include the cost of an adviser, a solicitor and a home valuation scheme.

An equity release solicitor can cost anywhere between £1,000 and £3,000 depending on the quality of your solicitor and where you are in the country.

This can usually be paid at the end of your loan, although some solicitors do ask you to pay them upfront.

An adviser will usually charge a small percentage of your overall loan, which will be taken from your equity release funds.

Likewise, you will need a home valuation carried out at your property at the very start of the process.

This initial home valuation costs approximately £100 to £200, and will need to be paid upfront.

This home valuation will give your lender and adviser a good indication of how much your home is worth and therefore how much money you might be able to release from your home.

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What are the advantages and disadvantages of equity release in Chichester?

There are numerous advantages and disadvantages associated with equity release in Chichester.

A good equity release adviser will always talk you through both the pros and cons of equity release in Chichester and won’t ever try to force you or put any pressure on you to release equity unless it is definitely right for you.

1. Advantages associated to equity release in Chichester

One of the main pros associated with equity release in Chichester is that all interest rates are fixed. T

his means that the amount of interest you will pay each month won’t ever change, for the entire duration of the loan.

Likewise, the money you receive from your lender will be tax free. This means that you will get to spend the entire amount of whatever you want to [3].

Finally, you do not have to repay a penny of the equity release loan until after you pass away.

This means that you can make the most of the money you receive and won’t have to worry about repaying your loan each month.

You can also choose to repay your traditional mortgage with your equity release loan, meaning that you will be mortgage free going into your retirement years.

2. Disadvantages associated to equity release in Chichester

Whilst there are numerous advantages associated with equity release in Chichester, it is important to acknowledge the disadvantages.

For example, your loan will need to be repaid via the sale of your home.

This means that instead of going to your loved ones as inheritance, the proceeds from the sale of your home will go towards paying off your equity release loan [3].

Likewise, there are a number of set up costs associated with taking out an equity release loan in Chichester.

This could end up costing you thousands of pounds, before even getting your equity release funds through.

Finally, if you currently receive any means-tested benefits and apply for an equity release loan, then you should expect these to stop.

This is because receiving your equity release funds will increase your overall savings, meaning that you will no longer be eligible for means-tested benefits.

You should bear this in mind if you hope to receive any means tested benefits in the future too [3].

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Speak to the team at Equity Release Warehouse

If you are curious about the ins and outs of equity release in Chichester or across West Sussex and want to learn more about the process, then speak to a member of the team at Equity Release Warehouse.

Our team of specialists will use our very own equity release calculator to determine exactly how much equity you might be able to release from your home.

It is important to understand that our team at Equity Release Warehouse will never put any pressure on you to release money from your home unless it is 100% the right decision for you and your family.