Equity Release Colchester - Lifetime Mortgage Near Me

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

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Equity Release Colchester and Near Colchester

Equity release in Colchester is designed for those aged 55 or over who are nearing or entering retirement age.

With equity release, you can release a set amount of money from your home, tax free in either one large lump sum or through a number of smaller payments [1].

With equity release in Colchester, you only repay the equity release loan once you pass away or move into a care home.

When either of these things happen, your house will be sold, and the loan repaid. You will also be charged interest on your equity release loan.

The money you receive is tax-free and you are free to spend this money on whatever you want to. Some spend the money they receive on home improvements, whilst others gift their money to their family and friends [1].

Whilst this might mean that you’re unable to leave as much inheritance to your loved ones as you might have wished for, you and your family will be protected by the no negative equity guarantee [1].

This guarantee ensures that even if your home decreases in value over the course of your loan, your loved ones will not have to pay the rest of the loan off. You can either opt for a lifetime mortgage or home reversion plan.

Please note, if you receive any means-tested benefits, then getting approved for an equity release mortgage might affect your entitlement. To check, contact The Department for Work and Pensions.

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What Can I Spend My Equity Release Money On?

The best thing about equity release in Colchester is that there are very few limitations on what you can spend your equity release funds on.

Most people spend their money on improving their quality of life, whereas some others choose to spend their money on their loved ones and family members [2].

A popular option is to spend your equity release mortgage on home improvements, which will not only make your lifestyle better but will also hopefully increase the value of your home, too.

Others choose to spend the money they receive from equity release in Colchester on their grandchildren, in order to fund University fees or help with the deposit on a house.

This could go a long way at helping the younger members of your family start their life [2].

Alternatively, you can choose to spend your equity release funds on improving your day to day life, which could include things such as joining a health club, buying a new car or going on holiday with your family.

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Benefits of Equity Release in Colchester

If you are considering equity release in Colchester, then it is important to understand the different benefits. The biggest benefit surrounding equity release in Colchester is that you do not have to sell your property whilst you’re still alive.

Many pensioners might be too stressed at the thought of moving home later in life. With equity release, you do not need to move home [3].

The money you receive will be tax-free, which is a huge benefit when it comes to equity release in Colchester. You do not need to make any repayments whilst you’re still alive, although you can choose to do so if you wish [3].

You also have the decision to release your equity in one large lump sum, or through a number of smaller payments which is known as a drawdown plan.

By choosing a drawdown plan, you might be charged less interest simply as your payments are in smaller amounts, so it will not compound as much [3].

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Equity release drawbacks and alternatives

The main alternatives of equity release include downsizing and borrowing money from family members. You can learn about the disadvantages of equity release here.

The Equity Release Process

The process for equity release in Colchester is incredibly straightforward and easy. There are set steps that you will need to move through. You will be led through thisEquity Release Conveyancing Process process by your equity release specialist adviser and your equity release solicitor [4].

Step 1

The first step is to seek professional advice. It is important to speak to a qualified equity release specialist about the ins and outs, so that you have a clear picture. They will talk you through the risks as well as the initial costs.

In fact, most equity release lenders will not release equity to you unless you agree to seek advice and support from a qualified equity release adviser.

Step 2

The next step is to choose a lender and a solicitor. Your adviser will help you choose a lender with the very best interest rates and deals, and your equity release solicitor will process the conveyancing for you.

Step 3

Step three is to apply for your equity release loan through your adviser. Someone will attend your home to do a home valuation and your solicitor will draw up all contracts.

It is important that your solicitor highlights the risks associated to taking out an equity release loan and outlines the terms and conditions of your loan.

Step 4

After 8 – 12 weeks, you should receive your funds via your equity release solicitor. This will either be in one large lump sum, or through a number of smaller payments, known as a drawdown plan.

Going forward, you do not have to make any monthly mortgage repayments and can enjoy your money on whatever you like. Your loan will then continue for as long as you live, or until you move into a care home.

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What is The No Negative Equity Guarantee?

The no negative equity guarantee allows you the peace of mind that your loved ones will never be responsible for paying off your equity release loan.

This type of guarantee ensures that even if your property decreases in value throughout the duration of your loan and no longer covers the cost of the loan (including interest) then the lender will always be forced to step in.

This means that your loved ones will never have to pay off the difference, no matter what happens [5].

It is important to discuss the ins and outs of the no negative equity guarantee with your adviser so that you understand how it works. Likewise, this should be written into your contract and agreement with your lender.

The Equity Release Council and Financial Conduct Authority ensure that all equity release loans offered in the UK also offer the no negative equity guarantee as standard, although it is always important to check.

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What are the costs associated with equity release in Colchester?

When considering equity release in Colchester, it’s important to understand the costs associated. With equity release in Colchester, there are a number of set up costs, including the cost of an equity release specialist advisor, your solicitor and interest rates.

The cost of your adviser will usually be charged upon completion, although your solicitor fees might need to be paid earlier, depending on your solicitors terms and conditions.

Usually, your solicitor will charge you anything between £1,000 and £3,000 to process your equity release loan, although this will depend on how expert they are and where you are in the country.

To apply for equity release in Colchester, you will also have to pay for the cost of a valuation during the process, which on average sits at around £100.

The cost of your adviser can be charged at the end of the process and is usually a small percentage of the overall loan amount.

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Why choose Equity Release Warehouse?

When considering equity release in Colchester, you will need to contact an equity release adviser. There are a whole host of reasons why you should choose Equity Release Warehouse if you are considering taking out equity release in Colchester.

Our website is easy to navigate, with all the knowledge and insight you need to make a sensible decision for you and your family.

Likewise, our advisers are fully qualified and trained to the highest standard in all things equity release in Colchester.

Our specialist equity release advisers will talk you through the disadvantages of equity release, to ensure that you have a clear picture and understanding of the risks associated with equity release in Colchester, as well as the advantages of taking out a loan.

Our team will also look at your personal circumstances to assess if there are any more affordable or sensible options suited to you. It is never our goal or aim to push you into taking out an equity release loan, as it has to be your decision and your decision alone.

We will even use our very own equity release calculator to work out exactly how much money you are able to release.

Likewise, our team are widespread across the UK. So, we’re able to help homeowners and pensioners from Scotland to Cornwall release equity from their home.

If you would like more information on how equity release in Colchester would work for you, then speak to a member of the Equity Release Warehouse team by calling us on 0330 058 1579 or by visiting our website, www.equityreleasewarehouse.com.