Lifetime Mortgage & General Equity Release Advice in Derbyshire
Reviewed by Tom Philips
Get in touch today on 0330 058 1579 for a free, zero obligation consultation. We can help you locate equity release advisors in your local area.
We always recommend researching equity release in Derbyshire as much as you can, which is what 70% of equity release consumers do before meeting with an adviser (1).
However, no matter how much research you do, you won’t get anywhere if you don’t know how to apply to equity release in Derbyshire.
Before you make a formal application, you need to know which equity release lender you want to go with and which equity release scheme you would like to have.
Ideally, you will have reached this conclusion after meeting with an equity release adviser who can inform you of the features and risks of equity release in Derbyshire.
If you are paying an equity release adviser, they will explain the application process to you and help you get started with the scheme.
They will fill out the parts of the form that relate to them, and then pass you the parts that you need to sign off on, including filling out your financial details and your desired equity release plan.
Once you send your application off, it usually takes around a week for it to be approved or denied.
Again, if you have met with an adviser, the chances are that your application will be approved as you should already know that you are eligible for equity release in Derbyshire after answering specific questions posed by the adviser.
If you are successful, the next step will be to have a property valuation and find a solicitor to help with the legal aspects of equity release in Derbyshire.
The solicitor will also be able to communicate with the lender for you, which can avoid misunderstandings and make the process much easier for you.
If you are not accepted for whatever reason, and there is still a chance you could be approved for a loan with another lender or plan, you are free to make another application.
Some of the reputable lenders the financial advisors will research on your behalf include Scottish Widows, Legal & General, Aviva, Liverpool Victoria (LV), Canada Life, more2life, Hodge, Just Retirement, Pure Retirement, One Family and LiveMore Mortgages. All advisors and lenders are regulated by the Financial Conduct Authority (FCA).
Otherwise, you could look into pursuing an alternative to equity release in Derbyshire, such as borrowing from loved ones, downsizing, or returning to work.
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Anyone who is eligible for equity release in Derbyshire can apply, no matter what their personal situation is. However, there is a certain type of person who is the target of equity release, and we will explain who this is.
The ideal equity release consumer would be of retirement age (at least 55 years old), and they would be looking for a way to increase their retirement income without having to make regular repayments as you would with a traditional loan.
They would be prepared to commit to a lifelong scheme in order to receive a loan that would carry them through the rest of their retirement.
Again, this is not a requirement, as people who want to make repayments are still able to release equity.
However, most people who do choose to take part in equity release in Derbyshire are cash poor, and they use their loan to generate enough money to enjoy a comfortable retirement.
Please call our 24-Hour Helpline: 0330 058 1579
The main equity release products in Derbyshire are lifetime mortgages and home reversions. Both of these schemes involve borrowing a sum of money that is secured against your property, and not having to repay it while you are still alive:
Lifetime mortgages come in many varieties. In Derbyshire, you can have eight different types of lifetime mortgage, and some of them are very different from one another.
For example, lump sum lifetime mortgages provide homeowners with a large sum of tax-free cash to spend on whatever they like, whereas drawdown mortgages provide an initial lump sum and then a cash reserve for ad-hoc or regular withdrawals.
Home reversions involve selling a property (or a share of a property) to an equity release provider for less than the market value.
Much like a lump sum lifetime mortgage, you receive the cash all at once. You do not pay any interest on a home reversion, which is one of the advantages when compared to lifetime mortgages. However, you are not able to sell your home as it will belong to the lender.
Below, we answer some of the frequently asked questions around the process of accessing equity release in Derbyshire:
The amount that you will spend on equity release in Derbyshire varies depending on the financial decisions you make, the costs detailed by the lender, and the equity release plan you select.
Overall, you could spend up to £1000 on fees including application charges, advice charges, and valuation charges.
Remember that it is possible to get free advice at the beginning, so you can save money at the start by opting for a free-of-charge consultation, such as the one we offer.
If you are releasing equity to combat the cost of living, then it might be better to first try to see if you can better manage your budget. This is because equity release is not the cheapest form of borrowing.
Below, we list organisations that may be able to help in Derbyshire:
Address: Town Hall, Bank Rd, Matlock DE4 3NN
Telephone: 0808 278 7954
Address: 114 Church St, Church Gresley, Swadlincote DE11 9NR
Telephone: 01283 210108
Address: Unit 1 Bridge St, Clay Cross, Chesterfield S45 9NG
Telephone: 0808 250 5702
Address: 29A Market Pl, Heanor DE75 7EG
Telephone: 01773 768240
Address: 4 Bank Rd, Matlock DE4 3AQ
Telephone: 01629 259521
Address: 31 High St, Alfreton DE55 7DR
Telephone: 01773 270642
You can also find related resources on Derbyshire Council’s website.
Yes, you can stay in your home if you have opted for equity release in Derbyshire. In fact, you are expected to stay there for the rest of your life.
If you have a lifetime mortgage, you will be living in your home as the homeowner, but you give up this title if you have a home reversion.
After signing off on equity release in Derbyshire, you are expected to keep your property in a good condition for the rest of the scheme, otherwise, the lender may lose out on some money in the property sale. This includes paying to maintain the property if it deteriorates over time.
You are also expected to pay all the bills, and many equity release consumers actually use this scheme with the purpose of generating enough money to pay bills. If you have not done this, make sure you leave enough money each month to pay for these expenses so that you can stay in your home.
No, you cannot have a lifetime mortgage or a home reversion in Derbyshire if you are under 55 years old, as the scheme was created with the purpose of helping people who are nearing retirement, or who are already retired.
In terms of a maximum age requirement, there is usually no need to worry, as most equity release lenders will approve a loan for people who are much older than 55. In fact, you have to be 65 years old to be in with a chance of having a home reversion.
No, you must be a homeowner to take part in equity release in Derbyshire. You must own a property that you can either sell to a lender (for a home reversion) or offer to a lender with the promise that it will generate money for them when it is sold (for a lifetime mortgage).
If you currently rent and you know you could afford to buy a home, it may be possible for you to purchase a property that is eligible for equity release with the purpose of taking out equity from it.
Yes, you do not need to have a large pension to release equity. As we mentioned before, equity release in Derbyshire is actually aimed at people who are cash poor, and though this isn’t a requirement, it tends to be the case as people who are cash-poor benefit from the lack of repayment that comes with equity release in Derbyshire.
If you do happen to have a large pension, you may want to opt for a scheme that allows repayment. This is because, if you can afford to do so, repayment could help you to keep your debt as low as possible, while still benefitting from the equity release loan.
For instance, you could get an interest-only lifetime mortgage and repay all of the interest in full each month, which would prevent the interest from accruing over time — something which ordinarily leaves many equity release consumers in a large amount of debt.
It is possible that you could be a consumer of equity release in Derbyshire if you have a leasehold property, but there are more obstacles in your way as you do not own the property in the same way that someone with a freehold property does.
To find out whether you are still eligible for an equity loan in Derbyshire, get in touch with us and we will ask about your current situation to figure out whether equity release would work for you.
Yes, you could use equity release in Derbyshire as a means of bridging finance if you only need to borrow money on a short-term basis. This is the best thing to do if you are attracted to the equity release scheme and you have a valid reason to choose it over a traditional loan.
However, equity release demands commitment, so you shouldn’t do it if you only need to borrow on a short-term basis and you feel confident that you could repay the money quickly, as a traditional loan would work better for you in this instance.
No, the equity release loan you will receive is not taxed in any way. This usually includes inheritance tax, as this is only applied when the homeowner’s estate is worth at least £325,000, which isn’t often the case if equity release funds have been released from it.
Some people intentionally release equity to avoid inheritance tax, as it is a way for them to gift money to their loved ones without worrying about it being taxed at 40%, which takes away a large amount of the money.
We hope that you now understand how equity release in Derbyshire works and how it can improve your life, as well as how it can lead to some challenges for certain people.
Equity release does not affect everyone in the same way, which is why it is so important that you consider how it will impact your personal circumstances before you decide to release money from your home.
The equity release market is six times bigger today than it was 11 years ago, which just goes to show how desirable this scheme is for pensioners in the UK (2).
Once you agree to equity release in Derbyshire, it will be very difficult to back out of the scheme in most cases, so please carefully consider the decision with an adviser first. Sometimes, downsizing protection is provided by lenders, so you can move home without consequences.
However, other times, you will be charged an early repayment fee for backing out of equity release in Derbyshire, and it is not worth paying this hefty fee when it can be prevented by doing research, being patient, and meeting with equity release specialists.
We would also encourage you to fill out your details here for a personal quote, as this will help you figure out how much money you could release from your Derbyshire property.
If you have stumbled across this page and you do not live in Derbyshire, don’t worry.
We work all over the UK to help homeowners with lifetime mortgages and home reversions, so we may be able to help you. Get in touch to find out whether we can be of use in your specific area.
Access help and advice today across Derbyshire in Alfreton, Allenton, Allestree, Alvaston, Ambergate, Ashbourne, Ashover, Bakewell, Bakewelll, Belper, Bolsover, Borrowash, Buxton, Chapel-en-le-frith, Chesterfield, Chinley, Clay Cross, Clowne, Derby, Dronfield, Glossop, Hadfield, Heanor, High Peak, Hope Valley, Ilkeston, Matlock, New Mills, Ockbrook, Repton, Ripley, Staveley, Swadlincote, Whaley Bridge, Wilmorton and Wirksworth.
 Equity release research still leads to misconceptions: Standard Life https://www.mortgagestrategy.co.uk/news/equity-release-research-still-leads-to-misconceptions-standard-life/
 Equity release market six times bigger than it was in 2011 https://todaysconveyancer.co.uk/equity-release-market-six-times-bigger-than-it-was-in-2011/
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