Equity Release in Dorset

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

Request A Callback

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.

Quick links to major points of interest:

How does Equity Release in Dorset Work?
Who is Eligible For Equity Release in Dorset?
What are the Different Types Of Lifetime Mortgage Available in Dorset?
Which is Better: Remortgaging Or Equity Release in Dorset?
What are the Alternatives to Using Equity Release in Dorset?

The quickest way to find out if your property is eligible for equity release in Dorset is to get in touch with us for a free consultation.

We will be able to tell you whether you are able to take out equity based on the type of property you own and the value of said property.

However, more generally, it is important to know that you can release equity from both houses and apartments in Dorset.

As long as the value is £ 70,000 or more, your property could be approved by an equity release lender in Dorset.

We also appoint solicitors who are familiar with the equity release process. You can learn about the importance of using solicitors during the equity release process here.

All solicitors are, of course, regulated by the Solicitors Regulation Authority and are members of the Law Society of England and Wales. If you are unhappy about the work you receive during the equity release process, you are entitled to raise a complaint with the Legal Ombudsman.

Some of the reputable lenders the financial advisors will research on your behalf include Saga, 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) and registered on the Financial Services Register. This means you can complain to the Financial Ombudsman Service if you are unhappy with the advice you receive.

All advisors and lenders are members of the Equity Release Council. The benefits of this include all products come with a no negative equity guarantee.

How Does Equity Release in Dorset Work?

Equity release is a form of loan, available to those aged 55 or over. Typically, individuals are able to release tens of thousands of pounds that have built up inside their property through opting for an equity release plan, without having to sell up or move home.

According to Money Saving Expert, Martin Lewis, there are numerous advantages to opting for an equity release loan, although admittedly, it is not for everyone [1].

Equity release is a great idea for anyone who has built up a significant amount of money in their property over the years and is not planning on moving home anytime soon.

There are two main types of equity release in Dorset, which are lifetime mortgages or home reversion plans. Lifetime mortgages, which are the most popular type of equity release, allow you to release money from your home whilst remaining the sole owner of your property.

You do not have to repay the loan until after you pass away or move into a care home. If this should happen, you would sell your property and the money from the sale pays off the loan, hopefully in full.

All equity release loans will charge you interest, which will compound over the years. Some people choose to pay off the interest on their loan whilst they are still alive, which will reduce the overall loan amount.

When your next of kin sells your property, the proceeds from the sale of the house will pay off the loan in full. If, for whatever reason, your property decreases in value, it may no longer cover the full loan amount. If this should happen, then your next of kin will be able to rely on the ‘no negative equity guarantee.’

This guarantee ensures that your next of kin will never have to pay off the loan should your property decrease in value and no longer cover the loan amount.

What Are Equity Release Schemes?

There are two main types of equity release schemes across Dorset and the rest of the UK. The most popular type of enquiry release is called a lifetime mortgage, which allows over 55s the chance to release equity from their home without having to move out or sell up.

With this type of equity release loan, you will be charged interest on your loan which will compound over time. You only have to repay the loan once you pass away or move into a care home due to ill health.

The second type of equity release is a home reversion plan, which allows individuals the chance to release money from their home. However, individuals who ppt for this type of equity release have to sell a percentage of their home. They could sell as little as 10% of the value of their home, or as much as 90% [2].

Are Retirement Apartments Eligible For Equity Release in Dorset?

It is possible to take out equity from a retirement apartment in Dorset, so we encourage you to get in touch if you are in this situation. However, it will not be as easy to release equity from this type of property, so you must prepare to face some challenges.

Retirement apartments must meet the requirements of equity release providers in Dorset.

Often, this means they should not be classed as studios or basement flats, there must be a lift in the block of flats, and the apartment must not be an ex-council property or a B&B/hotel.

However, some equity release lenders in Dorset will be more lenient with their requirements, so it’s important to do your research to find out if there is a lender out there who would be willing to offer you a loan.

Are Leasehold Properties Eligible For Equity Release in Dorset?

Again, this is entirely dependent on the lender’s preferences. Some equity release providers are happy to offer lifetime mortgages or home reversions to people with leasehold properties.

However, others will never approve a loan for someone with a leasehold property.

If you are coming to the end of your lease, it is much less likely that you will be offered a loan as you will soon lose your rights to the property. However, if you have many years left on it, there is more chance you could succeed with equity release in Dorset.

Who is Eligible For Equity Release in Dorset?

The first requirement is related to age. Equity release consumers must be at least 55 years old for a lifetime mortgage and 65 years old for a home reversion plan.

This is because equity release in Dorset is designed to boost retirement income, and to last throughout the homeowner’s life, so it is not a scheme for young people. The average age of an equity release consumer is 68-70 years old [3].

The second requirement involves the value of your property. You must own a property that is worth at least £70 000 to be eligible for equity release in Dorset [4].

This is because the equity release provider will eventually sell your home and take the sale proceeds, and the proceeds must be high enough to cover the cost of the loan.

The final requirement is that you must own property. It goes without saying that you cannot tap into the funds of a property that you rent, as they are not yours to tap into.

The same applies if you have a leasehold property and your contract is soon coming to an end.

And just because you can take out equity release doesn’t necessarily mean you should. We advise you to first look at the costs involved, and other potential drawbacks. It’s also useful to access the alternatives to equity release.

One obvious drawback is that equity release may stop certain state benefits, and you may be under a legal obligation to inform the Department of Work and Pensions that you have began to benefit from equity release.

If you are taking out equity release to combat the high costs of living in the UK, it might be better to first try to better budget what money you do have available already.

Below, we signpost you to organisations that might be able to help:

1. Citizens Advice Central Dorset

Address: 1 Acland Rd, Dorchester DT1 1JW

Telephone: 0800 144 8848

Website: https://centraldorsetca.org.uk/

2. Citizens Advice in East Dorset and Purbeck

Address: Hanham Rd, Wimborne BH21 1AS

Telephone: 0800 144 8848

Website: https://www.edpcitizensadvice.org.uk/

3. Citizens Advice Bridport

Address: 45 South St, Bridport DT6 3NY

Telephone: 0800 144 8848

Website: https://bridportca.org.uk/

4. Age UK Bournemouth, Poole and East Dorset

Address: 700 Wimborne Rd, Moordown, Bournemouth BH9 2EG

Telephone: 01202 530530

Website: https://www.ageuk.org.uk/bournemouthpooleeastdorset/

5. Age U.K. North,South & West Dorset

Address: Units 1 and 2, 5 Crown Sq, Dorchester DT1 3EN

Telephone: 01305 269444

Website: https://www.ageuk.org.uk/northsouthwestdorset/

6. Mendip Community Credit Union

Address: Unit 7, 56-58 Abbey Meads, High St, Glastonbury BA6 9DY

Telephone: 0800 622 6036

Website: http://mendipcommunitycu.org.uk/

Nationally, you can reach out to organisations such as Money and Pensions Service and StepChange. You will also find useful resources on Dorset Council’s website.

Which is Better: A Lifetime Mortgage in Dorset Or a Home Reversion in Dorset?

Neither option is perfect for everyone. Some people benefit from lifetime mortgages, others home reversions, and others an alternative to equity release.

We can only recommend an option when you get in touch with us and describe your individual circumstances.

Having said that, there are some key factors that determine whether you are more suited to a lifetime mortgage or a home reversion.

If you want to remain the homeowner, you should opt for a lifetime mortgage. If you want to sell a share of your home so that you can remain in it for the rest of your life, a home reversion is better for you.

What are the Different Types Of Lifetime Mortgage Available in Dorset?

There are eight types of lifetime mortgages available to equity release consumers in Dorset.

Some of them are purpose-driven plans, meaning you must spend the loan on something in particular such as a second home, but others are more general. Here are the different types of lifetime mortgage:

To find out more about each of these equity release plans, visit the links above. You can also get in touch with us for a free consultation and we will explain how each of these plans could work for you, as well as inform you if you are ineligible for any of these schemes.

Can You Move House With Equity Release in Dorset?

Yes, you can move home with equity release in Dorset if you are with a lender who allows this, and if you have selected a plan that allows for this.

For example, if your equity release plan involves downsizing protection, you are able to move into a lower-value home whenever you want to.

However, keep in mind that this would decrease your loan amount as you would have less to offer to the lender in terms of property value, so they would get less money from the property sale after you pass away or enter permanent care.

If your lender or plan does not allow you to move, you will, unfortunately, have to stick with the scheme. Sometimes, you can pay a fee to exit the scheme, which is known as an early repayment fee. It is usually 25% of the initial loan amount.

The good news is that if you approach equity release safely, you will do plenty of research before selecting your lender and plan.

This means you should never be caught off guard by the lender’s rules when it comes to moving home, so you should never end up in a situation where you are forced to remain an equity release customer without wanting to be.

Can You Rent Out Your Home With Equity Release in Dorset?

No, you cannot rent out your home if you have taken out equity in Dorset. If you know this is something you definitely want to do in the future, you should avoid equity release and perhaps consider remortgaging or downsizing in order to boost your retirement income and still be able to rent out your home.

You could also get a buy-to-let lifetime mortgage, which would involve spending an equity loan on a property in Dorset and renting it out to get a steady rental income. This would allow you to remain in your current property while still renting out another property to tenants.

Can You Purchase a Second Home With Equity Release in Dorset?

Yes, you can most certainly purchase a second home in Dorset using an equity release loan. To do this, you would have to apply for a second home lifetime mortgage with a Dorset equity release provider.

If your property is not worth much more than £ 70,000, you may struggle to cover the costs of purchasing a second property as your equity loan will be on the lower side.

This means you may not be eligible for a second plan scheme unless you have another source of income i.e. savings, financial gifts from loved ones, or you are still working.

If you do buy a second home with equity release in Dorset, keep in mind that you will be required to stay in it for a certain period.

Usually, you need to be there for at least 50% of the year. We recommend choosing a location that you love as you will spend lots of time there.

You could even choose a different location to Dorset – some of our customers buy homes abroad. However, you would need to be able to travel to home frequently, so make sure you would be prepared to do this.

Which is Better: Remortgaging Or Equity Release in Dorset?

Just as there is no superior scheme between lifetime mortgages and home reversions, when it comes to remortgaging vs taking out equity, there is no right answer. It all depends on your personal situation.

One thing to keep in mind is that remortgaging tends to be a longer process than releasing equity in Dorset. The former takes up to 14 weeks, whereas equity release usually only takes no more than 8 weeks.

This will not bother some customers, but it’s important to note if you are busy with work or you need access to money as soon as possible.

Another aspect to consider is the cost of remortgaging compared to releasing equity in Dorset. Both schemes involve various fees, but with equity release, the loan amount never needs to be repaid.

In this sense, equity release is more affordable than remortgaging, as you don’t need to have a large amount of money to be eligible.

Finally, in terms of the debt you are getting yourself into, remortgage is better for people who are concerned about owing money.

This is because you make monthly repayments when you remortgage. On the other hand, when you take out equity, you do not have to repay it, so it tends to build over time.

Above: Typical Properties You Can Release Equity From in Dorset

Equity Release – How Much Can I Borrow?

With most home reversion plans, you can release anywhere between 20% and 60% of the value of your home, although this does depend on a number of different factors including your age, your health and the value and condition of your property.

If you live with someone else, then their age and health status will also come into play.

In real terms, this usually means that individuals are able to release anything between £10,000 and £100,000 from their property in Dorset, whilst being able to remain living in their home for the rest of their lives, should they stick to the terms and conditions of the property.

Some lenders allow you to release one large lump sum from their property, whereas others allow you to release smaller, more frequent amounts of money which is known as a drawdown plan.

If you are curious to find out how much money you might be able to release from your home, then talk to an equity release adviser at Equity Release Warehouse for more information.

They will use their equity release calculator to work out an estimate of how much money you might be able to release, depending on your age, your health and the value of your property.

Can I Use Equity Release To Pay Off Mortgage?

Yes, you can release money from your home to pay off your mortgage. This is one of the most popular reasons why people release equity from their homes in Dorset and the rest of the UK.

However, most lenders will only allow you to do so if you only have a small amount of your mortgage left to pay off.

With interest rates set to continue to rise, it is wise to do so if you are coming towards the end of your fixed term and are expecting a significant rise in your monthly mortgage repayments.

This is an especially good option if you want to retire soon and are hoping to be mortgage-free going into retirement [5].

By doing so, you will be free to enjoy your retirement the way that you want to, without the worry of having to pay off monthly mortgage payments whilst being retired and out of work.

If you would like more information on how you can use your equity release money to pay off your pre-existing mortgage, then talk to someone at the Equity Release Warehouse team.

How Much Does Equity Release in Dorset Cost?

Equity release does include some set-up costs, as well as the overall compound interest you are charged on your equity release loan.

According to some equity release providers who operate across Dorset and the rest of the UK, the initial set-up costs of taking out an equity release loan can be anywhere between £1,500 and £2,000.

This cost includes the cost of a solicitor, home valuation and equity release adviser, although some advisers will only charge you after you have received your equity release loan.

The cost of your solicitor will depend on a number of factors, including how much work they do for you and how long it takes them to process your application.

Some solicitors will charge you more if you need more meetings with them before they are able to process your equity release application.

How Long Does Equity Release Take?

Taking out an equity release loan in Dorset can take a number of weeks. This is because your adviser and solicitor will have to do a lot of work on your behalf before they are able to send off your application.

It can also take a number of weeks for your lender to review and approve your application before they can release the funds into your account.

Usually, it takes approximately 8 – 12 weeks for a lender to approve an application and for your solicitor to do all of the work necessary. Therefore, once you have applied through your equity release adviser, you should expect to wait 8 – 12 weeks before the money is transferred into your account [6].

What Is A Loan-To-Value Ratio And How Does It Impact Equity Release?

Your loan-to-value ratio is the size of your loan, in comparison and relative to the total value of the property. This is usually given to you as a percentage. For example, if you put a 10% deposit down, then your property will have a 90% mortgage.

Halifax uses the following example to explain how the loan-to-value ratio works. For example, let’s say that you pay a deposit of £20,000 on a property worth £200,000 which means that your deposit is 10%.

You will be offered a mortgage loan worth £180,000 to pay for the rest of the property, but will of course be charged interest on this loan over a fixed term. This means that your LTV (loan to value) ratio is 90% [7].

Your loan-to-value ratio is one of the most important parts of your equity release loan, and your lender will think carefully about your loan-to-value ratio to ensure that they will get their money back by the time your loan ends, when you pass away or move into a care home.

What Can I Use Equity Release For?

One of the best things about equity release in Dorset is that you are able to spend the money you receive on pretty much anything you like, as long as your adviser and lender is aware of what you are planning on spending it on.

Most people who release equity from their home go on to spend their money on home improvements around the house. This might include things such as a handrail, a ramp or a new and more accessible garden for you to move around in as you get older.

Thai is a great way of ensuring that you are able to remain living in your home for as long as you can, whilst also potentially adding value to your home, as well.

Other people choose to give their money to their loved ones, who might benefit from receiving a large, lump sum of money. This could go towards paying off University fees, or as a deposit for a house for a child or grandchild [8].

However, a large percentage of people who opt for equity release go on to spend their money on things such as nice holidays, a nice new car or just a better lifestyle. In reality, there is no right or wrong way when it comes to spending your own home [8].

At Equity Release Warehouse, we would simply recommend that you are wise with your money and spend it on ways that will either improve your lifestyle as you get older or increase the amount of inheritance you are able to leave to your loved ones.

Can I use Equity Release To Pay Off Interest-Only Mortgage?

Yes, you are able to pay off an interest-only mortgage with the money that you receive from your equity release loan in Dorset. This is a great option for anyone who is looking to retire from their job, but is worried about having to pay off their interest-only mortgage or lump sum.

An interest-only mortgage is a popular type of mortgage, used throughout the UK to keep monthly mortgage repayments as low as possible.

With interest-only mortgages, you only have to repay the interest on your loan each month, as opposed to paying back the overall loan amount. This is different to a repay mortgage, where you have to repay the loan amount each month [9].

With interest-only mortgages, once your mortgage term is over, whether that’s 20 or 30 years, you will have to pay off the remaining amount in one large lump sum.

Before you will be approved for an interest-only mortgage, you will have to provide proof that you will be able to pay off this lump sum amount by the time your mortgage term ends [9].

This is why opting for an equity release loan is a great option for anyone who might struggle to pay off this loan amount when the time comes.

Can I use Equity Release to Pay For a Divorce Settlement?

Yes, you are able to use equity release as a way of settling a divorce. Releasing money from the marital home can go a long way towards settling a divorce, especially if one party wishes to remain living in the property in the years to come.

By doing so, this individual will become the sole owner of the property, whilst the other will be ‘bought out.’

Alternatively, the other individual might want to keep some of the equity release money, which will go a long way towards helping them to purchase a new property for them to live in, whether that’s through paying for a new property outright or by getting a new mortgage.

Alternatively, this money can be put towards paying for rent over the next few years should they wish to not purchase a new property.

Can I use Equity Release to Pay For Home Improvements?

Yes, using equity release money to pay for home improvements around your house is a great way of using your money. This will not only increase the value of your property but will also go a long way towards making your home a more comfortable place to live as you get older.

Home improvements could include things such as handrails for easy access, ramps or slopes for a wheelchair or a more accessible garden or kitchen.

Likewise, people might choose to spend their money on ways of making their home more modern and aesthetic which will help to increase the value of your home when you come to sell, meaning that your loved ones might receive more inheritance once you pass away or move into a care home.

Can I Use Equity Release to Pay For a Buy To Let Property?

Yes, you are able to release equity and spend it on a buy to let property in Dorset and across the rest of the UK.

The main advantage to doing so is that you are not using your own property as collateral on the buy-to-let property, as no longer can ask you to move out of your home and sell up.

If you release equity from your home to purchase a buy-to-let property, then you will need to remain living in your home for at least 6 months of the year, as this property must remain your main residence.

Unfortunately, even if you release equity to buy another property, you will still have to pay for things such as stamp duty and solicitors fees. If you want more information on how you might be able to release equity in order to pay for a buy-to-let property, then speak to a member of our team at Equity Release Warehouse.

Can I Use Equity Release to Pay for Care Home Costs or Medical Bills?

Yes, you are able to release equity from your home to pay for care home costs or medical bills. In fact, this is one of the most popular reasons why people release equity in Dorset and the rest of the UK.

Before you commit to this, you must also consider the risks associated with equity release and must also have a greater understanding of what care you or your loved one will need in the future and how this might cost you.

By releasing equity from your home, you will be able to pay for care costs yourself, without having to rely on the state or family members to pay for your care themselves.

Equity release can pay for a number of different care costs, including an at-home carer or home improvements around the house, such as a stairlift, handrails or a ramp for a wheelchair.

Live-in carers are a great way of ensuring that you and your loved ones are cared for in later life and it also takes any pressure off of your loved ones to care for you [10].

Is Equity Release in Dorset Safe?

Equity release has risen in popularity over the past few years across Dorset and the rest of the UK, due to competitive interest rates during the Covid-19 pandemic and more regulation from the Equity Release Council and the Financial Conduct Authority.

However, as with any type of loan, there are always risks involved. For example, you will be charged interest for taking out an equity release loan, which will inevitably compound over a number of months and years. This means that over the years, your overall loan amount will increase a lot.

Your loan has to be repaid with the money from the sale of your house, which means that you have to rely on your house increasing in value in order to pay off the loan in full.

However, the Equity Release Council and Financial Conduct Authority ensures that all those who take out an equity release loan benefit from the no negative equity guarantee, which is explained further below for you.

What is a No Negative Equity Guarantee?

The no negative equity guarantee means that even if your house decreases in value and no longer covers the loan amount, the bank will always step in and pay the difference.

The no negative equity guarantee puts it simply by saying that you will never owe more than the property is worth when it is sold.

As part of their rules, no equity release lender has the right to ask anyone to sell their home or move out of their home, as long as they stick to the terms and conditions of their loan. [11].

The no negative equity guarantee ensures that even if you are unable to leave your loved ones any inheritance, your loved ones will never find themselves responsible for having to pay off your loan after you pass away or move into a care home, which is the main worry for those contemplating taking out an equity release loan.

What Is the Equity Release Council?

The Equity Release Council is the industry body for all things equity release, ensuring that all lenders and advisers are offering fair, standardised and high-quality products to their clients.

According to the Equity Release Council, approximately 90% of the sector, which includes lenders, advisers and equity release solicitors across Dorset and the rest of the UK are members of the Equity Release Council.[13]

The work the Equity Release Council has done to improve standards across the industry is the main reason why equity release has become increasingly popular over recent years [12].

The Equity Release Council has a number of standards and values, including product standards which includes fixed interest rates, the right to remain living in your home for as long as you are able to, a no negative equity guarantee and the right to make penalty free payments.

If your lender and adviser are part of the Equity Release Council, then you must also seek independent legal advice.[14]

Can Equity Release Affect State Benefits?

Yes, taking out an equity release loan in Dorset or throughout the rest of the UK will have an impact on what state benefits you are and are not eligible for.

In fact, all means-tested benefits are affected by taking out an equity release plan, which you should bear in mind if you are considering taking out an equity release loan.

These means tested benefits include things such as Universal credit, which is offered to low earners or those struggling to pay their bills or basic living expenses. In addition to Universal credit, council tax reduction will be impacted if you take out an equity release loan.

Any other means tested benefits will also be impacted by taking out an equity release loan. However, benefits such as disability allowance and personal independence payment will not be impacted.

It is also important to understand that private and state pensions are not affected by equity release. Your pension credit might be impacted though, depending on a number of different factors.

Can Equity Release Be Repaid Early?

Yes, you can repay your equity release loan early, although you might be charged for doing so depending on your lender and the terms and conditions of your loan. According to the Equity Release Council, most lenders will fine you for early repayments [15].

The Equity Release Council also states that these fees can come quite expensive, and all clients should be aware of how much they are able to repay at any one given time.

Some lenders will allow you to repay up to a certain amount of your loan before they start to charge you money.

Most lenders across Dorset and the rest of the UK will charge their clients’ money because equity release is supposed to be a long-term option and agreement, rather than a short-term option which you are going to repay quickly.

Remember the longer your loan goes on, the more interest the lender is charging you which will be compounding over time.

How Does Equity Release Work When You Die?

Your equity release loan will continue until after you pass away or move into a care home. When you do pass away, your next of kin(s) and loved one will be responsible for selling your home.

Your house will be sold, and instead of your next of kin inheriting the proceeds, the proceeds from the sale of the house will pay off the entire equity release loan, plus any interest added onto the equity release loan.

Usually, most properties in Dorset will increase in value over the years, meaning that the house will be sold for more than it was bought for.

This means that the proceeds from the sale of the house will almost always cover the loan plus interest. If there is anything left over, then this money will go to your next of kin as inheritance.

If your property has not increased in value or has decreased at all and no longer covers the loan amount, then you and your family will benefit from the no negative equity guarantee.

This guarantee ensures that even if your house decreases in value, your next of kin will not have to put their hands in their own pocket to pay off the equity release loan.

Your next of kin will have approximately 6 – 12 months to sell your property and pay off your equity release loan after you pass away or move into a care home for health reasons.

Can Equity Release Be Taken Out For Tenants In Common in Dorset?

Yes, you are able to release equity from your home in Dorset even if you bought your house as tenants in common.

Being tenants in common means that you both own the property, but get to decide on exactly how much of the property you both own.

For example, you could opt to own the property 50/50, or one of you can own 90% of the property and the equity inside the property.

People usually decide to be tenants in common because they might put down a significantly higher percentage of the house deposit, and therefore want more ownership of the equity within the property.

If you want more information on whether you are a tenant in common or a joint tenant, then check the deeds of your property or alternatively speak to your solicitor.

Can Equity Release Be Taken Out For Leasehold Property?

Yes, those who own leasehold properties in Dorset are able to release equity from their home.

The Equity Release Council makes it clear that individuals who own a leasehold property are able to release money from their home, as long as there are enough years left on the lease [16].

Whilst each lender does have different criteria when it comes to leasehold properties, you should ensure that there are at least 75 – 80 years [2] left on your leasehold property before applying for equity release.

If this is not the case, then you are able to extend your leasehold alongside applying for an equity release loan.

Can I Take Out Equity Release Under A Power Of Attorney?

Appointing someone as your lasting power of attorney can provide you with great peace of mind if you have taken out any equity release loan or are planning to in the future.

You are able to appoint someone as your lasting power of attorney if you no longer have the physical or mental capacity to make your own decisions, whether these are decisions about your health, your money or your home [17].

A lasting power of attorney is a legal document which you and your power of attorney will need to sign, which states that this individual is now able to make these decisions for you.

Whilst not everyone who takes out an equity release loan has to appoint a lasting power of attorney; it is recommended for a number of different reasons [18].

For example, your equity release loan will last for as long as you live, which could mean that your loan continues until you are old and no longer have mental or physical capacity.

Therefore it is always a good idea to have someone appointed as your lasting power of attorney, just in case the time comes where you are no longer able to make your own decisions [18].

Which Equity Release Company Is Best?

There are a number of different equity release companies across Dorset and the rest of the UK. Whilst each has their own pros and cons, your equity release adviser will be able to link you up and match you to the best and most appropriate lender for you.

Some of the best lenders across Dorset and the rest of the UK are listed below for you.

1. Equity Release With Aviva

Aviva have been issuing individuals across Dorset and the rest of the UK with equity release loans for a number of years and have won many awards for their work.

They are regulated by the Financial Conduct Authority and claim to be the best equity release adviser in the UK.

With Aviva, your interest rates will be fixed, but will compound over the years. They claim to have very competitive plans and offerings, and have now served over 162,000 people up and down the country.

2. Equity Release With Canada Life

Canada Life isn’t as well known as Aviva but they do have a really good reputation when it comes to equity release in Dorset and the rest of the UK.

Again, their interest rates are fixed and Canada Life also offers you the chance to repay your loan early, without being charged any early repayment fees [19].

Canada Life is also part of the Equity Release Council and Financial Conduct Authority, which provides individuals with the reassurance they need to trust Canada Life with all their equity release needs.

3. Equity Release With Lloyds Bank

Lloyds Bank does not offer equity release directly, but they do partner with Scottish Widows to provide their customers in Dorset and the rest of the UK with equity release loans.

They offer all types of equity release loans, including lifetime mortgages, home revision plans as well as drawdown and lump sum loans.

When you first enquire about Equity Release to the team at Lloyds Bank, you will be forwarded to the Scottish Widows advisors, so do not be alarmed if this happens.

From this moment onwards, the Scottish Widows will then be dealing with your equity release questions and application.

4. Equity Release With Age Partnership

Age Partnership have been advertising their equity release plans on the television for years now, so you are probably familiar with their offering.

They have successfully helped over 50,000 people release equity from their home and place a huge emphasis on making sure that equity release is the right option for you before helping you to apply for a loan.

Age Partnership works with lenders to offer the public equity release, consider each application and compare them against different lenders to ensure that they are finding you the very best loan for your circumstances.

Age Partnership offers you any initial advice for free, but they will charge you just under £2,000 if you go ahead with one of their lender’s loans.

5. Equity Release With Just Retirement

Just Retirement have been offering lifetime mortgages and home reversion plans for a while now, but are still relatively unknown in the equity release industry.

They are specialists in the financial and equity release industry and focus on helping those aged 55 or over live a happy and financially free retirement [5].

According to the Just Group [20] they are growing at a fast rate and have now helped over 50,000 people release over £6 billion from their homes [20].

6. Equity Release With Key Group

The Key Group has a very successful track record in helping to provide people up and down the UK with equity release plans.

They offer a range of different services to those aged 55 or over, including equity release plans and investment advice.

They have partnered with More2Life when it comes to equity release and together, they have helped customers up and down the UK to release over £167 million pounds in equity over the years [21].

7. Equity Release With Legal And General

Legal and General work with Key to provide financial advice to anyone considering equity release as an option.

They do not charge for their advice, but will charge you a total fee of £599 as an arrangement fee if you choose to go ahead with their recommended plan.

Legal and General also allows you to repay some of your loan early, which will help to reduce the overall loan and the amount of compound interest that builds up over the years.

8. Equity Release With Nationwide

Nationwide is one of the biggest high street banks across the UK serving an estimated 15 million people up and down the country.

Whilst they’ve got a good reputation when it comes to equity release, they have recently stopped taking on new equity release customers and are only dealing with their existing clients.

They will allow you to repay some of your loan early, in fact you are able to repay up to 10% of your loan each year before being charged any early repayment charges.

Like most other lenders and loans, you will benefit from a no negative equity guarantee, as well as fixed interest rates and downsize protection.

9. Equity Release With Saga

Saga also offers equity release loans and are members of the Equity Release Council. They offer a range of financial products to over 2 million customers up and down the country.

They also offer another feature, called a money back guarantee. This ensures that if you change your mind about equity release after taking out your loan, you are able to get all your money back and opt out of your loan, should you wish to do so [22].

In addition to this, they also offer all of their clients £100 cashback if their funds are not sent to their account within just 40 working days of initially applying for their equity release loan [22].

10. Equity Release With Sunlife

Sunlife are another really popular equity release provider, who frequently advertise on TV with their offerings.

They offer lifetime mortgages to those aged 55, who own a property worth at least £70,000 and who are planning on living in their property for a number of years.

However, it is important to note that Sunlife do not offer equity release loans directly, but they do work with Standard Life who will advise you on all your equity release queries and will also make sure that you are applying for the very best loan.

Using An Equity Loan Calculator

All equity release advisers use their own equity release calculator, which allows them to work out an estimate when it comes to how much equity you might be able to release from your home.

In order to use an equity release calculator, they will need to ask you a number of questions including how much you think your house is worth, how much equity you have in your home and your current state of health.

Whilst equity release calculators are only an estimate, they are a great indicator as to how much you might be able to release from your home.

In order to get an accurate idea of just how much money you will be able to release from your home, you will need to get your home valued.

This costs approximately £100 and will involve someone coming to view your property to see what kind of condition it is in. They will need to look externally and most likely, internally too.

Do I Need A Solicitor When it Comes to Equity Release in Dorset?

Yes, according to the Equity Release Council, you will need an equity release solicitor if you want to apply for an equity release loan in Dorset and throughout the rest of the UK.

Your equity release solicitors will process your application and will be responsible for transferring the money from the lender to their client on the day of the loan transfer.

They will work for approximately 8 – 12 weeks on your application and will be responsible for all of the paperwork involved in your application.

Hiring an equity release solicitor to work on your behalf will cost you anywhere between £1,000 and £2,000 depending on how much work they have to do for you and how complex your equity release application is.

What are the Alternatives to Using Equity Release in Dorset?

At Equity Release Warehouse, we know exactly how equity release is able to help millions of people up and down the country live a more comfortable and relaxed retirement.

However, we also accept that equity release is not for everyone and that there are a number of really good alternatives to equity release if you don’t think that equity release is for you.

Some of these alternatives are more suitable to some than others, but they are well worth exploring if you think that you want to apply for equity release.

1. Downsizing your property instead of Equity Release in Dorset

Downsizing your property in Dorset is a great alternative to equity release if you aren’t precious about living in your property in the future. This means that you will sell your current property and buy a smaller and cheaper property, pocketing the cash.

By doing so, you might even be doing yourself a favour. For example, downsizing as you get older is usually the natural thing to do, as you might not be able to maintain a large house in your old age.

You might benefit from downsizing to a bungalow or cottage, instead of a large house with stairs. When considering moving house and downsizing, you should also take into account the size of the garden, which will be hard to maintain as you get older.

By downsizing and pocketing the cash, you will be free to spend this money on whatever you want, including a better lifestyle in retirement, care costs or a nice holiday.

2. Extending your mortgage term instead of Equity Release in Dorset

If you do not want to move home but agree that equity release simply isn’t for you, then you could consider extending your mortgage term on your current property.

This means that you will be lowering your monthly mortgage payments but will continue to have to pay your mortgage for longer, which isn’t ideal if you are looking to retire anytime soon.

By extending your mortgage term, you will also continue to pay more interest on your mortgage, which is a hard pill to swallow by the time you hit retirement age. Whilst extending your mortgage term is an option for some, it is not for everyone.

3. Getting a part time job instead of Equity Release in Dorset

Another alternative to equity release in Dorset is to get a part time job. Lots of people in retirement choose to get a part time job, to supplement their income and pension.

This is an easy way of ensuring that you get some additional income during your retirement, without having to worry about moving house or paying interest.

4. Personal loans instead of Equity Release in Dorset

Personal loans are another alternative to getting an equity release loan, but they will involve higher interest rates.

However, if you pay off your personal loan on a regular basis, this will have a positive impact on your credit score and will go in your favour. By doing so, you will not be risking your property or reducing your loved ones and next of kin’s inheritance in any way.

What Can Equity Release Warehouse in Dorset Do For You?

When you reach out to an Equity Release Warehouse adviser, you can prepare to become an expert in equity release Dorset with the wealth of information that will be made available to you.

Firstly, we will put forward the features and risks of equity release, ensuring you are aware of the positive and negative ways that equity release in Dorset could affect you and your family.

We will welcome any questions you have about the scheme, whether they appear on our FAQs page or not.

Secondly, we will discuss the different equity release plans that you can have in Dorset, including home reversion schemes and lifetime mortgages.

Part of this involves discussing the interest rates, the impact on inheritance, the way the money is paid, and the benefits and drawbacks and disadvantages of each plan.

Finally, we will explain how you can get involved with equity release in a safe way. We will recommend selecting professionals who are equipped to deal with equity release, including advisers, solicitors and lenders. We will also describe the equity release application process so that your transition into equity release is as smooth as possible.

If you can’t wait for your appointment, have a look at the information that is already available on our website.

Our help centre contains everything you need to know about equity release, including a large number of FAQs based on the top things our customers want to know about the equity release scheme.

We also encourage you to look at our plans section to learn about each equity release plan in detail. This could help you to rule out some equity release schemes before talking to an adviser, which would speed up the equity release process significantly.

Finally, please request a personalised quote so that you can find out how much money you could release from your Dorset property. Our equity release calculator is another quick way to do this, but it will be less accurate than a personal quote.

On the other hand, if you cannot wait to speak to an adviser, you can get started as soon as you would like by either calling us on 0330 058 1579 or requesting a call from us.

Our line is open from 8am-8pm every day of the week, and there is always an adviser on the other end of the line who would be delighted to give you advice about equity release in across Dorset in Bournemouth, Weymouth, Poole, Swanage, Dorchester, Corfe Castle, Bridport, West Bay, Christchurch, Sherborne, Wimborne Minster, Charmouth, Wareham, Blandford Forum, Abbotsbury, Poole Harbour, West Lulworth, Beaminster, Sturminster Newton, Burton Bradstock, Cerne Abbas, Ferndown, Gillingham, Milton Abbas and Highcliffe.