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Equity Release in Croydon

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Equity Release in Croydon

If you live in Croydon, are over 55 years old and want more access to the equity you have built up in your home, then you should consider equity release in Croydon.

Over recent years, house prices in Croydon have increased significantly, as they have across the rest of the UK.

In fact, according to Rightmove [1], the average value of a house in Croydon is worth £390,106 which is above the national average.

Most houses in Croydon were flats, which sell for an average price of £275,859. Terraced properties in Croydon sell for an average of £424,659 and semi-detached properties sell for a staggering £516,267 [1].

In fact, according to a recent study carried out by Rightmove [1], house prices in Croydon have increased by 5% between 2018 and 2019 [1].

As you can imagine, this means that if you own a house in Croydon, then you will have a lot of equity in your home.

The equity in your home includes the initial deposit you put down on the property, all monthly mortgage repayments and the increase in value of your home.

If you are considering equity release in Croydon, then speak to a member of our team at Equity Release Warehouse for advice and support on how to choose the best equity release schemes and plans for you.

Please call our 24-Hour Helpline: 0330 058 1579

What is Equity Release?

Equity release in Croydon is a popular way of gaining access to some extra funds and equity in your house during later life. By opting for equity release, you will gain access to a certain amount of the equity in your home, whilst being able to remain living in your home for as long as you like.

The great thing about equity release in Croydon is that individuals are allowed to spend their equity release funds however they want to.

Lots of people might choose to use their equity release funds on the current increase in the cost of living, whereas others might choose to spend their equity release funds on a series of home improvements, a nice new car, a once-in-a-lifetime holiday or to help family members and loved ones with house deposits or University fees.

There are no real restrictions on how you can spend your equity release funds.

However, it is important to understand that your equity release advisor will ask you what you plan on spending your equity release funds on, so that they can make sure that you are making the very best financial decisions and investments.

It is important to look at equity release as a loan and a form of credit, like with any other loan or mortgage. However, with an equity release plan you are able to gain access to your funds almost immediately and you are then able to pay off the loan when you sell the house, move into long-term care or pass away.

There are many different types of equity release as each situation is different. You might be eligible for a number of different schemes, but your equity release advisor will highlight which plans are best for you.

There are also a number of different ways you can gain access to your equity release in Croydon. For example, you are able to opt for one large lump sum, which you will receive only once.

You are also able to opt for a number of smaller, monthly repayments over a number of months or even years. Alternatively, you are able to opt for a combination of both.

It is important to have a detailed conversation with your equity release advisor on what you plan on spending your equity release funds on, so that you make the best decision and combination that works best for you.

You will need to ensure that you do not withdraw more money than you need to be, as you will be hit with high-interest rates.

Speaking with an equity release specialist is often mandatory and required in order to qualify for an equity release scheme.

At Equity Release Warehouse, our team of highly trained specialists and advisors are there to offer you guidance and support on how to choose the best equity release scheme for you.

There are two main types of equity release in Croydon, which are known as a lifetime mortgage and a home reversion plan.

Each different plan has its own pros and cons, and your equity release advisor will talk you through these pros and cons when you sit down with them for the very first time.

Whether you think that a lifetime mortgage or a home reversion plan is best for you, then you will need to consider the following factors:

  • How long you think you will be living in your house
  • Whether you think you would prefer or need one lump sum or a number of other, smaller payments
  • Whether you need access to your funds immediately or can wait a number of weeks or months

If you live in Croydon and think that equity release in Croydon might be for you, then you should speak to a member of our Equity Release Warehouse for advice and support.

Please call our 24-Hour Helpline: 0330 058 1579

Facts about Equity Release in Croydon

There are many different facts and myths about equity release in Croydon. Unfortunately, a lot of the different misconceptions when it comes to equity release in Croydon prevent a lot of people from taking the plunge and releasing equity from their home.

At Equity Release Warehouse, we are keen to debunk any myths and highlight the facts and figures surrounding equity release. Below is a list of facts when it comes to equity release in Croydon.

1. Your Rate Will be Fixed

When it comes to equity release in Croydon, you will benefit from a fixed interest rate.

As with many other mortgages, your interest rate will only be fixed for a number of different years, and has the ability to change every two, three, five or ten years. However, with an equity release plan, your interest rate will be fixed for the entire term of the loan.

Therefore, once you sign up for equity release in Croydon, your interest rate will stay the same, which means that it is easy to work out how much money you will need to pay in interest over the number of years.

However, it is important to remember that unless you pay off this interest in small, monthly payments, then the interest will build up into compound interest, which could end up being an eye-watering amount.

2. You Will Stay Leave Inheritance

Lots of people think that signing up to equity release in Croydon means that you will not be able to leave any inheritance for your loved ones and next of kin. However, this simply is not the case.

Most equity release plans across the UK and Croydon ensure that a percentage of your property is protected, to ensure that you are able to leave an inheritance to your loved ones and next of kin.

It is always worth discussing your equity release plans with your next of kin and loved ones before you sign on the dotted line, to ensure that they are fully onboard with your equity release plans and understand how the equity release process will work after you pass away or move into long term care when you sell the property.

Please call our 24-Hour Helpline: 0330 058 1579

3. You Will Benefit From No Negative Equity Guarantee

When you opt for equity release in Croydon, you will benefit from a no-negative equity guarantee. This means that despite what happens to the value of your house, you will never owe more than the price your property is sold for.

This means that even if your property decreases in value, you will never have to repay the difference, even if the market has crashed and your home decreases in value by a significant amount.

This ensures that your investment is sound and secure, and you will not be leaving your next of kin, family and loved ones in debt.

4. You Can Repay in Different Ways

The other great thing about equity release in Croydon is that you are able to repay the interest on the equity release loan in different ways.

For example, you can choose to repay the interest on the loan in monthly instalments, or you can allow the equity to build up and turn into compound interest which will be paid off upon the sale of your house after you pass away.

It is important to understand that your equity release advisor will always suggest that you pay off the interest on your equity release loan little and often. However, they will only suggest this if you feel comfortable doing so and are able to afford to do so.

5. You Do Not Have to Move House

The great thing about equity release in Croydon is that you do not need to move or sell your home in order to gain access to your equity release funds.

Lots of people believe the misconception that in order to gain access to equity, you will have to sell your home or put yourself at risk of losing your home. However, this simply is not the case.

By opting for equity release in Croydon, you will be able to gain access to your equity release funds whilst being able to remain living in your home. You will be able to do so, rent-free for as long as you live.

Please call our 24-Hour Helpline: 0330 058 1579

Am I Eligible for Equity Release in Croydon?

In order to qualify for equity release in Croydon, there are a number of different factors and eligibility criteria that you will have to pass before you are able to submit your equity release application.

Some of these factors include the following:

  • You will have to be aged over 55 years old for a lifetime mortgage, and aged 65 or over for a home reversion plan
  • You will need to be a homeowner living in the UK
  • Your property will need to be in the UK
  • Your property will need to be worth £70,000 or over
  • You will need to have paid off a significant amount of your mortgage through your monthly mortgage repayments over a number of years

Whilst each lender is different and might add on a few other qualification criteria, the above factors are the most common qualification criteria and factors when it comes to equity release in Croydon.

Please call our 24-Hour Helpline: 0330 058 1579

Common Reasons Why You Should Consider Equity Release in Croydon

Equity Release Warehouse helps and guides thousands of people when it comes to releasing equity from their home across the UK and Croydon.

Each equity release specialist is fully trained in equity release and finance, meaning that they are in the best possible place to advise and guide you into making the very best decision for you and your financial circumstances.

There are a whole host of reasons why someone would want to release equity from their home in Croydon or throughout the rest of the UK.

Some of these reasons include the following list:

  • You are able to pay off your existing mortgage and want more access to funds
  • If want to pay off any existing debt
  • You want to extend your home or pay for any home improvements
  • You want to travel
  • You want to support friends, family and loved ones with University fees or a house deposit
  • You want to live a more financially comfortable and free retirement with extra funds
  • You want to leave an inheritance for your loved ones and next of kin

It is also important to understand that many people now might choose to release equity from their home in Croydon due to the increase in the cost of living which is currently financially crippling many households across the UK.

Lots of people aged 55 or over might be relying on their pension funds and savings to see them through the increase in the current cost of living.

If you are struggling and aged over 55 years old, then you should consider using equity release as a solution to your problems.

Whether you want to do some home improvements, treat a family member or loved one or simply need support during the increase in the cost of living, then speak to someone at our team at Equity Release Warehouse for advice and support.

Our specialists will guide you into making the very best decision, but will not put any pressure on you to make a decision.

Please call our 24-Hour Helpline: 0330 058 1579

Lifetime Mortgage Versus Home Reversion Plan

1. Lifetime mortgage

Lifetime mortgages are just one form of equity release. However, over the years, lifetime mortgages have become the most popular form of equity release in Croydon and across the rest of the UK. In order to qualify for a lifetime equity release mortgage, you will need to be aged 55 or over.

With a lifetime mortgage, you will be able to borrow a percentage of your property’s value which will have an associated fixed rate when it comes to interest rates.

This is a fantastic aspect of equity release, as you know how much money you will be expected to repay over the number of years throughout your plan.

The other great thing about a lifetime mortgage is that you do not have to repay your loan until you pass away or move into long-term care, which will be paid back upon the sale of the property and family home.

However, it is important that you do not forget about the interest that builds up on any loan.

In order to avoid experiencing compound interest, your equity release specialist will suggest that you pay off the interest in monthly repayments.

However, some people do allow the interest to build up over time which again, will be repaid upon the sale of the house leaving your family and next of kin with less inheritance.

Just like with an ordinary loan and mortgage, you will experience different interest rates depending on which lender and bank you opt to go with for your equity release loan.

With a lifetime mortgage, you will need to be aged 55 or over in order to qualify, and you will have to be currently healthy.

You will also experience a fixed interest rate, and if you are on a variable interest rate then you will need to ensure that there is an upper limit.

You will be able to remain living in your home until you sell your property, pass away or move into long-term care.

You will also benefit from a no negative equity guarantee, which means that once you sell your property, if the property sells for less than the value of the loan, then you will not be liable to pay the difference and debt, nor will your family be.

It is important to understand that with a lifetime equity release mortgage, there will be a maximum amount that you will be able to borrow, which is usually approximately 60% of your property’s value.

If you are slightly older, then you might want to consider a home reversion plan.

2. Home reversion

If you do not qualify for a lifetime mortgage or are aged 65 or over, then you might want to consider a home reversion plan.

A home reversion plan is when you are able to access a lump sum of your equity in exchange for a percentage of your home.

However, it is important to understand that you will sell the percentage of your property to the equity release lender for below market value. This means that you would get less money than you would if you were to sell your property.

Therefore, when you opt for a home reversion plan, you will leave less inheritance to your loved ones when you pass as you will be selling part of the property to the lender when you sell.

However, as with a lifetime equity release mortgage, you will be able to remain living in your home whilst gaining access to the equity built up in your home.

If you want to consider a home reversion plan in Croydon, then you will need to consider the below following factors.

  • You will most likely need to be aged 65 or over to qualify for a home reversion plan
  • You can remain living in your home, but if you do want to move home, then you will need to make sure that your new property lender agrees to the terms and conditions of your equity release plan
  • Your home reversion plan will benefit from a no-negative equity guarantee

If you live in Croydon and are considering equity release in Croydon, then it is important to speak with an equity release specialist and advisor for advice and support on whether they think a lifetime equity release mortgage or a home reversion plan is better for you and your family.

Please call our 24-Hour Helpline: 0330 058 1579

Common Questions about Equity Release in Croydon

1. How much equity can I release?

Unfortunately, how much equity you are able to release from your home is dependent on a number of different factors.

For example, these factors often include how old you are, whether you are suffering from any current health conditions or issues and how much of your mortgage you have already paid off.

Most lenders across Croydon and the rest of the UK allow you to take out a minimum of the value of your house, which is usually 10% of the house value, and a maximum of 60% – 70% of the value of your house, depending on a number of different factors.

2. Is equity release a safe option?

Equity release is a great option, which provides many people across Croydon and the UK the financial freedom they want in later life.

The equity release industry is regulated by the equity release council and financial conduct authority, to ensure that each equity release provider and specialist is offering fair and safe investments.

3. How much does equity release in Croydon cost?

Your equity release advisor will lay out the associated costs of your equity release plan in your illustration before you agree on your equity release plan and sign on the dotted line. There are a number of different factors and costs that come into play, which include the cost of a valuation and a solicitor.

4. What are the pros of equity release in Croydon?

There are a number of different pros when it comes to equity release in Croydon. The biggest benefit to those aged 55 or over is that individuals are able to gain access to their equity funds whilst being able to remain living in their home for as long as they want.

By the time many people reach retirement age, they simply do not want to move home. This could be because they could not deal with the stress of moving house, or simply because they do not want to move away from the home they have lived in and loved for so many years. Others might not want to move away from friends, family members and loved ones.

5. What can I spend my equity release funds on?

There are no real limits on what you are allowed to spend your equity release funds on. Lots of people release equity from their home for a number of different reasons.

However, it is important that you are open and honest with your equity release specialist and lender about what you plan on spending your equity release funds on, so that they suggest the very best equity release plans and schemes for you.

Get in Touch with Equity Release Warehouse

If you are considering equity release in Croydon, then you should speak to a member of the Equity Release Warehouse team. Our friendly and knowledgeable advisors will help and guide you into making the best decision for you.

You can speak to one of our advisors by giving us a call on 0330 058 1579 for free.

Please call our 24-Hour Helpline: 0330 058 1579

References

[1] https://www.rightmove.co.uk/house-prices/croydon.html

 

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