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Equity Release in East Sussex - Lifetime Mortgage Near Me

Lifetime Mortgages, Home Reversion, and General Equity Release Advice in East Sussex
Reviewed by Tom Philips

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Equity Release in East Sussex & Near East Sussex

Property prices are rising all over East Sussex, with a particular boom in certain areas such as Mid Sussex. [1].

If you own a property in East Sussex, you are likely to have plenty of money tied up in your property that you currently cannot access.

If you are cash-poor, it is all the more frustrating that you are living in such a valuable home that you cannot benefit from.

That’s where equity release comes in. It allows you to obtain these funds through a loan that does not have to be paid back until you pass away or move into long-term care.

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.

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How Does Equity Release in East Sussex Work?

Equity release is a type of mortgage, offered to those aged 55 or over who want to remain living in their property but are in need of cash in order to enjoy their retirement without having to worry about income or savings.

More and more people up and down East Sussex and the rest of the country are working longer and retiring later, as they are simply unable to afford to retire when they would ideally want to.

In fact, the Government has now increased the state pension age, which now sits at 66 years old for those living in the UK.

However, this is set to increase by May 2026, and is expected to increase significantly over the next few decades [1].

Whilst people are living longer, this also means that finances are stretched and need to last even longer.

This means that a lot of retirees are struggling to make their finances work for them. This is why millions of people up and down the country are turning to equity release for help and support.

Equity release works by allowing individuals the chance to dip into the equity inside their home, without having to sell. In fact, you don’t even need to pay back the mortgage until you pass away or move into a care home.

How much equity you are able to release depends on the value of your home and your personal circumstances, including your health and your age.

You are able to remain living in your home for as long as you want, whilst being able to spend the money on whatever you want, whether that’s on home improvements or helping the grandchildren.

You will release a tax-free account from your home, but will be charged interest on your loan.

This interest will turn into compound interest over the years, although all interest rates are fixed when it comes to equity release.

Once you pass away or move into a care home, you will be expected to repay the loan. Don’t worry, you won’t be expected to do this through your savings or inheritance.

Instead, you will repay the loan through the sale of your home, usually led by your family and next of kin. The proceeds from the sale of the house will cover the cost of the loan, including any interest.

If, for whatever reason, your house has decreased in value and no longer covers the cost of the loan, then your next of kin and finances will be protected by a no-negative equity guarantee.

What Are Equity Release Schemes?

There are numerous equity release schemes on the market which all cater for different needs. These plans and schemes differ and their qualification criteria will change depending on what lender you opt to borrow the money from.

The two main equity release schemes used throughout East Sussex and the rest of the UK include lifetime mortgages and home reversion plans.

There are many pros and cons to each type of equity release plan, along with different qualification criteria. The key differences between these two types of plans is discussed below [2].

What Is Equity Release Lifetime Mortgage?

Lifetime mortgages are by far the most popular type of equity release. With lifetime mortgages, you get to release a tax free amount of money from your home, whilst remaining the sole owner of the property.

You will gain access to the money inside your home and will also be able to spend this money on whatever you want to.

With lifetime mortgages, you are charged interest on your loan. This will be charged on either a weekly, monthly or annual basis and will quickly compound, increasing the overall loan amount.

This will be added onto the overall loan amount which will be repaid once you pass away or move into a care home.

The proceeds from the sale of your home will pay off the loan, so that you don’t have to dip into your inheritance in order to do so [2].

What Is Equity Release Home Reversion Plan?

Home reversion plans are another popular type of equity release, although they are not as popular as lifetime mortgages.

With home reversion plans, you have to sell a certain percentage of your property to the lender in exchange for access to the money and equity inside your home.

Whilst you do have to sell a percentage of your property to the lender with home reversion plans, this could be as much or as little as you want.

For example, some people sell as little as 10% of their home to the lender. Naturally, the higher the percentage you sell, the more equity you will gain access to.

However, it is important to understand that if you opt for a home reversion plan, you will be selling the percentage of your property to the lender for less than market value [2].

By doing so, you will receive a tax free, lump sum of money which you are free to spend on whatever you want to.

Home reversion plans are higher risk, although you will not be charged any interest by taking out a home reversion plan.

Deciding Whether Equity Release in East Sussex is Right for You

There are many different things to consider when you are making your mind up about equity release in East Sussex, and we will go through a few of these today.

1. Is Your Property Fit for Purpose?

There are some things you can confirm without needing a valuation, and we encourage you to reflect on these before speaking to an adviser.

For example, is your home likely to be worth at least £70,000? If it is much lower in value, you will not be a suitable equity release candidate in East Sussex.

What type of property do you live in? Particular property types, such as retirement flats, are not accepted by all lenders, so you will need to check the criteria. Generally, most houses and flats can be put forward for equity release.

We know that some people worry that they will not be able to take out equity on a flat, but this is a myth. It is particularly important that our East Sussex customers know this as apartments are the most common type of property in your area.

Over the past year, according to Rightmove, most of the sales in East Sussex were flats, with the average flat selling for £258,464 (3).

If you are an owner of an apartment, just like owners of houses, you could release a significant amount of money from your property to aid you in retirement.

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2. Are You an Eligible Candidate?

This is a very important question to ask as it saves time on an application if you are simply not entitled to an equity release loan.

You must be at least 55 years old for a lifetime mortgage and 65 years old for a home reversion, you must be a homeowner, and your property must be valued at £70,000 or more.

If you are unsure about your eligibility, you can always ask an adviser for their counsel, but this will sometimes come at a cost depending on the firm or independent adviser you go to.

3. Have You Considered Other Options?

We don’t advise anyone to settle on equity release in East Sussex without looking at other options, as we know that it can be an expensive scheme.

If you have decided that other options (downsizing, remortgaging, borrowing from loved ones, traditional loans etc) are not appropriate, then by all means start taking equity release seriously and ask us how you can get started.

You could even combine multiple options if this is best for you. For example, you could downsize in order to reduce your mortgage and bills, and then release equity on your new property.

Another example is that you could access grants from the government but still decide to release equity, and that way, you’d benefit from even more income to help you make your retirement as comfortable as possible.

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4. Is Equity Release a Scam or Is it a Safe Scheme?

When you release equity with Equity Release Warehouse, the process is incredibly safe. We guide you through every stage, explaining how everything works and offering unbiased advice, to ensure you are free to make your own decisions.

Some of our clients are concerned about there being a catch with equity release. The only catch is that it will be costly overall, but if you would rather benefit from your money now rather than leaving it all to others when you pass away, there is no catch so to speak.

Overall, though it is possible to be deceived by an unreliable lender, equity release is not a scam (5). It does what it professes to do; offers a loan that does not have to be repaid until you go into long-term care or pass away.

How to Stay Away From Equity Release Scams

We encourage you to put safety first by only working with advisers who are regulated by the Equity Release Council (ERC) and Financial Conduct Authority (FCA). This means that if you ever need to complain about a lack of safety, you will be supported by these bodies.

The financial adviser you meet with should be willing to present you with a personalised illustration demonstrating the features and risks of equity release.

They should also explain the different schemes that you could go with so that you are aware of your options and have peace of mind that you have investigated all possible scenarios before settling on one.

Please call our 24-Hour Helpline: 0330 058 1579

What are the Different Types of Equity Release Plan?

To reiterate our previous point, we recommend that you speak to an adviser to find out about the different plans, as it’s important to learn about each one in detail. However, we will give you a brief overview today.

The two types of equity release products that we have in East Sussex are home reversions and equity release lifetime mortgages. Both involve loans that are repaid through the sale of your property, and both can affect the amount of inheritance that you can pass on.

With lifetime mortgages, of which there are many kinds, you take out a mortgage and receive a loan that is either paid in monthly instalments or as a lump sum.

You remain the owner of your home for the rest of your life, and you are expected to stay in your property. This is the most popular form of equity release in East Sussex.

With a home reversion plan, you sell your property (or part of it) to the lender and renounce your title as homeowner, but you still live in the property until the end of the scheme, when your home must be vacated and possessions must be removed. This is a less popular form of equity release, but it is gradually being used more.

There are also retirement mortgages and retirement interest-only mortgages. They are designed to help you through life post-retirement (or just before you retire) as the other plans do not exclude people who are not retiring for a long time.

With a retirement interest-only mortgage, you pay back just the interest on the loan, whether that’s the full amount or part of it. Generally, you will repay this on a monthly basis in order to reduce the amount of interest that is owed overall.

As compound interest is charged on all equity release loans, paying off the interest is a great way to avoid owing a huge amount, and can give you and your family peace of mind about your debt.

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How Much Does it Cost to Speak to an Adviser About Equity Release in East Sussex?

The advice fees vary depending on which adviser you want to speak to. Here at Equity Release Warehouse, we offer a free initial consultation, so you do not have to worry about paying a large sum to simply get an idea of how equity release works.

In our consultation, we will explain the basics of equity release, the benefits of equity release, and the cons of equity release, to give you an accurate picture of what it looks like to release funds from your East Sussex property.

Advice fees are not the only fees you will have to pay, as you will also have to work with a solicitor, a financial adviser, and pay for additional things such as a valuation of your property. Keep these costs in mind when you are considering equity release in East Sussex.

Is Equity Release Available to Everyone in East Sussex?

To take out equity in East Sussex, you do need to fit the eligibility criteria of the equity release provider you go with and the plan you select. We have outlined the main criteria above, which is your age, property type, and property value.

However, if you are after a specific lender or plan, you may find that they are more specific about their requirements. They may want you to have a good credit history, live in a certain location, commit to not repaying the loan, and to not moving house.

It all depends on the decisions you make about equity release. If you are not entitled to a loan with a certain lender or plan, you can make an application to a different one whenever you want to.

Remember that certain plans offer benefits if you are eligible for their schemes.

For example, with the enhanced/ill-health plan, you could benefit from lower interest rates or a higher loan if you can prove that you are struggling with your health. You will usually need to provide doctor’s notes, and sometimes an evaluation is necessary.

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What Happens If I Decide to Repay My Loan Early?

As we have mentioned, some lenders do not allow you to repay your loan early, and others charge an early repayment fee for this, which can be as much as 25% of your equity loan.

However, others are more lenient, so do check with equity release experts if you believe you will want to repay some of your loan before it is due.

Professional advisers are likely to recommend a voluntary repayment plan, as this allows you to make repayments whenever you can, or to make consistent monthly repayments. This reduces the overall amount you owe at the end of the scheme.

This is a good option for people who are concerned about being able to pass on an inheritance to their family.

What Happens If I Move Into Long-term Care?

It is expected that the scheme will come to an end when you pass away or move into care. If you go into a care home, your property will be sold by the equity release lender, and part of the proceeds could go towards your costs of care.

Fortunately, the stress is off you and your loved ones when it comes to selling the home, as the equity release provider will take care of it all for you. This is one of the benefits of releasing equity in your later years.

Please call our 24-Hour Helpline: 0330 058 1579

What Happens If I Need an Equity Release Loan For a Large Project?

If you are after an equity release loan in East Sussex to help with a large project such as renovating your entire home, we advise that you choose a plan that allows you to access a  tax-free cash lump sum.

This is because you will need the money all at once if you want to avoid taking out another loan.

The best plans for this are lump sum lifetime mortgages, drawdown lifetime mortgages, and buy-to-let lifetime mortgages. With the latter, you would have to be releasing equity to fund a new property that you will rent out.

When to consider alternatives to equity release?

Equity release will not be the best financial product all of the time. For this reason, we urge you to learn the potential drawbacks of equity release as they apply to your situation. You can read about the costs involved here. It’s also useful to learn the alternatives to equity release.

This information will help you make a more informed choice when it comes to releasing equity from your home.

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. Below, we list organisations that may be able to help in East Sussex:

1. Citizens Advice Eastbourne

Address: Unit 6, Highlight House, 8 St Leonard’s Rd, Eastbourne BN21 3UH

Telephone: 0800 144 8848

Website: http://www.eastbournecab.co.uk/

2. Citizens Advice Uckfield

Address: Library, Library Way, High St, Uckfield TN22 1AR

Telephone: 0808 278 7811

Website: http://www.wealdencitizensadvice.org.uk/

3. Citizens Advice 1066 (1Rother District)

Address: 40 St Leonards Rd, Bexhill-on-Sea TN40 1JB

Telephone: 01424 869352

Website: https://www.citizensadvice1066.co.uk/

4. Age UK East Sussex

Address: Faraday House, 1 Faraday Cl, Eastbourne BN22 9BH

Telephone: 01273 476704

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

5. Age UK East Sussex

Address: Faraday House, 1 Faraday Cl, Eastbourne BN22 9BH

Telephone: 01273 476704

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

6. Age UK East Sussex

Address: 26-28 St Leonards Rd, Bexhill-on-Sea TN40 1HT

Telephone: 01424 215674

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

You will find further resources via East Sussex Council.

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Equity Release Vs Remortgaging in East Sussex

Most people aged 55 or over who are considering equity release in East Sussex and the rest of the UK have already paid off their pre-existing, traditional mortgage.

This means that you will have a significant amount of equity built up in your home, ready to access.

Most people look at remortgaging their property in East Sussex in order to get a better interest rate on their mortgage, which might not apply to you if you have already paid off your mortgage.

However, you can still remortgage even if this is the case, although you should be prepared to start paying monthly fees again.

With equity release, there are no mandatory monthly payments and you do not have to repay the loan until after you pass away or move into a care home [6].

If you choose to remortgage, you should expect to have to go through extensive credit checks in order to get approved.

However, with equity release there are significantly less checks compared to remortgaging. Likewise, if you choose to remortgage and miss a repayment, then you put your home at risk of being repossessed.

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How Much Can I Borrow in East Sussex?

How much equity you are able to borrow in East Sussex depends on lots of different factors.

For example, when considering how much equity you are able to release as well as what type of equity release plan you are best suited to, your lender will want to consider your age, your current health status and whether or not you are suffering from any debt or credit score issues.

With lifetime mortgages, individuals are usually allowed to release anywhere between 20% and 60% of the total value of your home.

Remember, the more you release from your home, the more money you will gain access to. However, you have to repay the full amount, including any interest once you pass away through the proceeds from the sale of your home.

If you opt for a home reversion plan, people usually sell anything between 20% and 100% of the value of your home.

However, it is important to understand that you will sell your property for considerably less than the market value if you opt for a home reversion scheme.

Please call our 24-Hour Helpline: 0330 058 1579

Can I Use Equity Release To Pay Off My Mortgage in East Sussex?

Yes, you are able to pay off your mortgage with your equity release money.

In fact, a lot of people across East Sussex release money from their home once they hit retirement age because they simply do not want to have to continue to pay off a mortgage, or simply won’t be able to without an income.

This is why so many people consider taking out an equity release plan, so that they can pay off the last of their remaining mortgage without having to stress or worry about money or income.

By using your equity release funds to pay off your existing mortgage, you will get to continue living in your home for as long as you want, but do not need to worry about your bank account in the meantime.

By doing so, you might make it easier to retire early, and will get to spend more time with loved ones whilst still in good health. You will also maintain your status as a homeowner and get to spend your retirement the way that you want to.

How Long Does Equity Release Take to Process?

Equity release in East Sussex and throughout the rest of the UK usually takes around 8 – 12 weeks to process.

This does differ depending on a number of different factors, including how quickly your solicitor works, who your lender is and how complex your case is.

The equity release conveyancing process can be quite straightforward and your solicitor is responsible for processing all of the legalities and paperwork involved in your loan application.

They will work as the mediator between you and the lender and will work to resolve any issues that might come about.

If you want to speed up the process because you need access to your money as soon as possible, then you will need to speak to your equity release solicitor and ask them to speed up their conveyancing work.

Please call our 24-Hour Helpline: 0330 058 1579

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

If you have taken out a traditional mortgage, then you will have heard of a loan-to-value ratio before.

A loan-to-value ratio is a term used to describe how much money you are able to borrow compared to how much money you are able to put down as a deposit [5].

When it comes to equity release in East Sussex, the loan-to-value ratio is the amount of money you are entitled to release from your home, considering the amount of equity that is already built up in your home.

Most people release anything between 20% and 60% of the total value of their home when it comes to lifetime mortgages. However, when it comes to home reversion plans, individuals are able to release up to 100%, but do have to sell a percentage of their home to the lender in order to receive this money [7].

The more you want to release from your property in East Sussex, then the higher your loan-to-value ratio will be.

It is always important to talk to your equity release adviser in East Sussex about your potential loan-to-value ratio, in order to make sure that you understand the concept and that you are opting for the right loan-to-value ratio for you.

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What Can I Use Equity Release For?

There are a whole host of things you are free to spend your equity release money on.

Most people end up releasing equity from their home because they are struggling to retire or enjoy their retirement in the way they would have hoped due to financial difficulties or strains.

Releasing equity from your home in East Sussex will allow you to enjoy the retirement you deserve, without the worries and stresses of money and financial difficulties.

Some people choose to release equity from their home to simply top up their income, whilst others need to release equity from their home to pay for care costs.

Other people choose to release equity from their home so that they can make some home improvements, which might make your final years of living in your home more comfortable for you and your family.

This might include things such as extensions, which will go a long way towards increasing the value of your home.

You could also make some home improvements which makes your home more suitable for you as you age, including things such as ramps or a stair lift.

Alternatively, you are allowed to spend your equity release money on your grandchildren, in order to help with things such as University fees or house deposits.

You can also, of course, choose to spend your equity release money on things for yourself and your partner.

You could choose to spend your money on a nice, long holiday for yourself or a better lifestyle.

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

Yes, many people release equity from their home in East Sussex in order to pay off an interest-only mortgage.

An interest-only mortgage is a very popular type of mortgage which means that you do not need to pay off your mortgage on a monthly basis.

Instead, you only have to repay the loan once your mortgage term comes to an end, after 25 or 35 years.

However, the issue with interest-only mortgages is that you are expected to pay your mortgage back in full by the time your mortgage comes to an end.

This means that you will be expected to pay hundreds of thousands of pounds back when the time comes.

As most people in East Sussex will never be in a position to pay this back in one large lump sum, your lender will ask for proof that you will be able to pay this amount of money back in full.

This type of mortgage is a great option for anyone who knows that they will come into a lump sum at some point during their life. This might include things such as inheritance.

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Can I use Equity Release For a Divorce Settlement?

Sadly, a divorce can happen at any point during your life and more and more individuals and couples are deciding to get a divorce than ever before.

In fact, according to the Office for National Statistics, divorce rates are on the rise at an increasingly worrying rate, rising around 10% on average between 2020 and 2021 [8].

When it comes to using equity release to settle a divorce in East Sussex, the answer is yes, you are allowed to release equity from your home and take out a lifetime equity release mortgage if you want to settle a divorce.

For example, if you release equity from your home, then you might be able to ‘buy out’ your partner of the property, meaning that you will be the sole owner of the property.

By buying your ex-partner out of the property, they might even have enough funds to buy themself a new property outright, or rent a new property.

Some equity release advisors and companies even have their very own divorce settlement calculator to help you work out an estimate when it comes to how much money you would be able to release and how this might help you to settle a divorce.

Please call our 24-Hour Helpline: 0330 058 1579

Can I use Equity Release For Home Improvements in East Sussex?

Yes, spending your equity release funds on home improvements is a great way of improving your living conditions and ensuring that you are increasing the value of your home.

Home improvements can include anything from an extension to handrails, ramps, a stairlift or a new and improved kitchen or garden.

However, if you do want to release equity from your home in East Sussex in order to make some home improvements, then you do need to take a number of things into consideration, as you will need to make your equity release adviser and lender aware of what your plans are, especially if you are changing the property in a significant way.

If you are simply redecorating your property then your lender will most likely accept you straight away. However, if you are building an extension, or knocking down a section of your property then your lender will need more information.

This could include things such as written plans or proof of costs. If you are hoping to make home improvements then you might be better suited to taking out a lump sum, lifetime equity release mortgage.

Please call our 24-Hour Helpline: 0330 058 1579

Can I Use Equity Release To Purchase a Buy To Let Property?

Yes, you can use equity release to purchase a property which you can then rent out, although you will have to search around for a lender who will approve this, as long as lenders will allow you to do so.

Purchasing a buy-to-let property in East Sussex is a great way of ensuring that you are making savvy investments, as property is always a great investment opportunity and the rental market is always profitable.

However, it is important to remember that even if you never live in this buy-to-let property, you will still have all the same problems you would as if you were buying a second home.

This includes things such as stamp duty and solicitors fees, as well as the added cost of an equity release adviser.

Please call our 24-Hour Helpline: 0330 058 1579

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

There’s no hiding from health care issues as you age and there is certainly no denying the fact that we are in a care crisis. In fact, paying for care costs has never been more expensive across East Sussex and the rest of the UK.

A study recently carried out by The Times found that more people than ever are needing professional care as they get older and yet less and less over 55’s are thinking about how they will fund their care when the time comes [9].

The answer is that yes, many people choose to release equity from their home in order to pay for care costs, including any medical bills or at-home costs.

When doing so, you can either release one large lump sum to pay for equipment or a care home, or you can opt for smaller, more frequent payments each month, otherwise known as a drawdown plan.

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Is Equity Release in East Sussex Safe?

There are many advantages when it comes to equity release in East Sussex and the rest of the UK. However, it is also important to remember that there are also many disadvantages to equity release which need to be considered.

For example, you will be charged interest on your equity release loan and will also be reducing the amount of inheritance you are able to leave your loved ones.

However, the equity release industry has done a lot of work over the past few decades in order to make equity release safer and more reliable for customers up and down the country.

For example, the Equity Release Council and Financial Conduct Authority now do a lot of work in and around the industry to ensure that all plans and loans are transparent and fair.

They ensure that all equity release advisers are fully trained in all things equity release and are in the best possible position to advise you.

With equity release, you will remain the sole owner of your property and won’t ever be asked to move out, by any adviser or lender.

You also do not have to worry about any monthly payments with equity release and you will never owe more than the value of your property.

Please call our 24-Hour Helpline: 0330 058 1579

What is a No Negative Equity Guarantee?

The Equity Release Council works to ensure that all equity release loans benefit from a no-negative equity guarantee.

This type of guarantee ensures that your loved ones or next of kin will not have to pay off the remaining amount of your loan once you pass away, even if your house decreases in value.

This ensures that you will never owe more than the value of your property, so that your loved ones are able to pay off the entirety of your equity release loan by using the proceeds from the sale of your home.

Hopefully, your property in East Sussex will have increased in value significantly enough so that there is some money left over for your loved ones as inheritance.

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What Is the Equity Release Council?

The Equity Release Council is the industry body for all things equity release. They ensure that all the solicitors, advisers and lenders working within the equity release council are playing by the rule book and are transparent, responsible and are acting in the best interests of their clients.

The Equity Release Council now represents 90% of the industry across East Sussex and the rest of the UK and once a company or industry signs up to be a member of the Equity Release Council they have to work to the standards and principles that the Council sets [10].

The work that the Equity Release Council has done over the past few years has gone a long way when it comes to improving the industry and the trust that the public have in the equity release industry.

Talk to our team at Equity Release Warehouse

If you are considering releasing equity from your home but don’t know who to talk to for advice and support, then give our team at Equity Release Warehouse a call.

Our team of specialists are on hand to advise you with any equity release questions or queries and will also be able to talk you through the process.

It is important to remember that it is not our job to convince or force you into releasing equity from your home.

Our team is only here to advise you and provide you with all of the information necessary to make an informed judgement.

We can even use our very own equity release calculator to work out how much you might be able to release from your home, should you wish to do so.

Please call our 24-Hour Helpline: 0330 058 1579

Can Equity Release Affect State Benefits in East Sussex?

Taking out an equity release plan in East Sussex will only affect means- tested benefits.

This includes things such as income support, job seekers allowance, housing benefit, council tax reduction, universal credit as well as pension credit.

So, if you receive any of the above means-tested benefits, then expect these to be affected if you choose to take out an equity release plan.

The Government determines who is eligible for means-tested benefits, as use your income and savings as a determining factor.

Equity release will affect your eligibility for means-tested benefits because by releasing equity, you are increasing your total savings.

This means that you are most likely no longer eligible for a considerable number of means-tested benefits.

By releasing a certain amount, you will be pushing your savings amount above the £16,000 state benefit savings threshold [11].

Even if you are not receiving any means-tested benefits at the time of your equity release application, it is important to remember that you might need to claim them in the future and might not be able to do so if you have released equity from your property.

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Can I Still Sell My House If I opt for Equity Release in East Sussex?

Yes, despite the common belief that you are not able to sell your home once you release equity from your property, you are allowed to sell and move properties should you stick to the terms and conditions of your equity release loan.

Most equity release lifetime mortgages in East Sussex are able to be repaid early, should you come into any lump sums, such as inheritance.

However, it is important to remember that you will also need to pay off any interest on your loan as well as the actual loan amount.

Likewise, you will be charged early repayment fees for repaying your loan early. Once you have repaid your loan, you will then be free to do what you want, including sell your house should you choose to.

Alternatively, you can move properties as long as the new property is of similar value to your current property and is made out of traditional materials.

The property you are moving to must meet the lenders’ criteria. For example, if the property you are hoping to move to is valued as less than your current property, then you might need to repay the loan early, including any compound interest.

If you want to move to a new property which is valued as less than your current value, then you should check to see if your loan contract includes downsize protection.

Please call our 24-Hour Helpline: 0330 058 1579

How Does Equity Release Work When You Die in East Sussex?

Once you pass away, your loved ones will be expected to pay off the remaining amount of your equity release loan using the sale of your house.

In East Sussex, this will almost always cover the loan amount, as houses very rarely decrease in value over the years.

Once you pass away, your family will have anything between 6 to 12 months to sell your property and pay off the remaining loan amount. This will include any interest that you have been charged over the years [12].

Even if the property has decreased in value significantly, your loved ones will never be responsible for paying off the equity release loan, simply because they will be protected by the no negative equity release guarantee.

This guarantee ensures that even if your property decreases in value, loved ones will never have to dip into their own pockets to pay off the loan. Instead, the lender will be responsible [12].

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

Yes, you are able to release equity from your home in East Sussex if you are a tenant in common. However, it is important to understand that in order to do so, both owners must agree to take out an equity release plan.

When you are a tenant in common, you both have legal ownership over the property in question. However, when you opt to be a tenant in common, you are agreeing to each owning a certain percentage.

For example, one individual in the partnership could own 90% of the property, whereas the other owns only 10%.

Likewise, you could opt to own 60% of the property, leaving your partner owning just 40%. You could also make this split 50% / 50% if you should choose to do so [13].

If you are a tenant in common and one partner passes away, then their share of the property, whatever that might be, will go to their next of kin, as stated in their Will.

Before taking out an equity release loan, you should talk to your partner extensively about the ins and outs of what it would entail, and check to see the deeds of your house to determine whether or not you are a tenant in common or a joint tenant.

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Can Equity Release Be Taken Out For Leasehold Property in East Sussex?

Yes, it is possible to release equity from your home in East Sussex if your property is a leasehold.

According to GOV.UK [14] there are an estimated 4.8 million leasehold properties in England alone, which is around 20% of all properties.

If you own one of these leasehold properties and want to take out an equity release plan, then you are able to apply through a lender. However, there are a number of qualification criteria that you will need to meet in order to qualify.

For example, most lenders will only accept a leasehold property if it has a significant amount of time left on the leasehold.

For example, it usually needs to have at least 75 years left on the leasehold in order to be considered.

If you have less than this left on the leasehold, then you might need to extend your leasehold which you can do so alongside your equity release application.

Likewise, the lender will want to know exactly what your ground rent charges are and will also need to see a copy of your leasehold agreement before they will accept you for an equity release plan.

If your leasehold property happens to be a flat, then you might be less likely to be approved for an equity release loan, although some lenders might accept you depending on a number of factors.

Please call our 24-Hour Helpline: 0330 058 1579

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

Yes, you might be able to take out an equity release plan as a power of attorney in East Sussex, depending on a number of different factors.

However, it is important to understand what type of power of attorney is in place and whether a court of protection has been taken out.

A power of attorney is a legal document which allows someone else to make decisions for you, including decisions about your finances, your health and even your living arrangement.

A power of attorney is able to be taken out if and when an individual loses mental capacity, meaning that they are no longer able to make decisions in their own best interest.

When choosing a power of attorney, it is incredibly important to choose someone who you trust and will remain incredibly close to over the coming years.

You need to be confident that they are responsible enough to act as a power of attorney and are trusted enough to act in your best interest, both now and in the future.

Equity release lenders will accept a power of attorney as long as they have been registered with the Court of Protection. They will need to see the paperwork and will also need to see a signed copy of all paperwork by the solicitor involved.

Some lenders might also ask why they want to release equity from the property and might ask for details on what you will be spending the money on.

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Which Equity Release Company in East Sussex Is Best?

There are a number of very well known equity release companies operating throughout the UK and East Sussex, all with great reputations when it comes to equity release.

Whilst each lender might have different qualification criteria, most lenders will accept you on the basis that you are aged 55 or over for lifetime mortgages and 65 or over for home reversion plans.

Your property must be worth at least £70,000 and you must have come towards the end of your mortgage, meaning that you only have a small amount of mortgage left to pay off.

There are other qualification criteria involved and your adviser or lender will most likely need to know about any health issues as well as any debt you might have.

1. Equity Release With Aviva

Aviva’s equity release loans are hugely popular and have been helping individuals across the UK and East Sussex to successfully release equity from their home for years.

They offer lifetime mortgages to anyone aged over 55 years old, who lives in the UK and who owns a property worth at least £70,000.

They offer advice to anyone who is considering taking out an enquiry release plan and will also work with your solicitor to draw up an illustration for you, so that you can see exactly how much money you will have to repay through the sale of your house once you pass away and move into a care home.

This is relatively easy for them to do, as all interest rates are fixed when it comes to equity release loans.

Aviva are regulated by the Financial Conduct Authority and have won numerous awards for their work across the equity release industry.

They have over 150,000 thousand clients and are members of the Equity Release Council, which means that all of their advisers are high quality and highly trained in all things equity release.

Please call our 24-Hour Helpline: 0330 058 1579

2. Equity Release With Canada Life

Canada Life offers equity release loans across the UK and East Sussex, offering mainly lifetime mortgages and buy-to-let mortgages to anyone aged 55 or over.

They offer competitive rates, and like all equity release plans, their interest rates are always fixed. This means that you will know exactly how much you will need to repay if you sell the house or pass away.

The great thing about taking out an equity release loan with Canada Life is that you are able to repay the loan early, should you choose to do so.

For example, it is likely that you might come into a lump sum of inheritance over the years, which you might use to pay off the equity release loan for.

Likewise, you might choose to pay off the equity release loan little by little each month or each year, which might go a long way towards paying off or simply reducing the total loan amount.

With other equity release lenders, you might be charged an early repayment fee for doing so. However, with Canada Life you will not be charged for paying back your loan amount early.

Please call our 24-Hour Helpline: 0330 058 1579

3. Equity Release With Lloyds Bank

Lloyds Bank does not offer equity release loans directly in East Sussex. Instead, they partner with a company called Scottish Widows to offer equity release loans to their customers.

They offer lifetime mortgages to individuals aged 55 years old or over, whether they own a freehold or a leasehold property in the UK worth at a minimum of £70,000.

So, if you call Lloyds Bank regarding taking out an equity release loan, you will be put in touch with an advisor from Scottish Widows who will talk you through your options.

4. Equity Release With Age Partnership

Age Partnership works with tens of thousands of people up and down the country and East Sussex to offer equity release.

Age Partnership are very keen on making sure that they only offer loans to individuals who are definitely suited to equity release.

They do a lot of work with their prospective clients to ensure that equity release is right for them, their family and their future.

Whilst Age Partnership does not offer loans directly, they do work with a number of lenders, all with different interest rates and qualification criteria.

This means that they can consider your situation and match you with the best lender for you and your current circumstances.

All of their advice is completely free and confidential and you are under no pressure or obligation to take out an equity release loan even after a few meetings with the Age Partnership team.

However, you will be charged just under £2,000 for the advice if you choose to go ahead with the equity release loan.

Please call our 24-Hour Helpline: 0330 058 1579

5. Equity Release With Just Retirement

Just Retirement is growing in popularity and is gaining more and more customers each year.

They offer a range of equity release plans in East Sussex, including lifetime mortgages to those aged 55 or over and home reversion plans to those aged 65 or over.

They consider themselves specialist financial advisers and also help with a range of other retirement and financial plans and schemes to help those nearing or entering retirement live a comfortable life.

They have over 50,000 customers and plan to continue to grow significantly within the industry over the next few years.

They claim to have helped equity release clients up and down the country release over £6 billion in equity over the years and now have a great reputation across the UK.

Please call our 24-Hour Helpline: 0330 058 1579

6. Equity Release With Key Group

Key Group are well known within the equity release industry and also have a great reputation when it comes to equity release up and down the country and in East Sussex.

They partner with another company called More2Life to allow individuals to release tax free amounts of equity from their home.

They work very closely with More2life to offer a range of financial products to those aged 55 or over, including lifetime mortgages as both lump sum plans or drawdown plans.

They’ve helped over 55’s up and down the country release hundreds of thousands of pounds and are a member of the Financial Conduct Authority.

7. Equity Release With Legal And General

Legal and General are a well known company who offer equity release loans to those aged 55 or over in East Sussex.

They offer their own financial advice to their clients, but then partner with Key Partnerships as their lender.

All of their advice is totally free and confidential and all of their advisers are monitored by the Financial Conduct Authority to ensure that they are offering fair, confidential and honest advice.

They offer a flexible lifetime mortgage which allows you to release a tax free amount of money from your home, which you do not have to repay until you pass away or move into a care home.

You also have the option of repaying your loan early by opting for an optional repayment lifetime mortgage.

This type of equity release loan allows you to repay a set amount of your loan back over a period of time.

By doing so, you will reduce the overall amount of interest charged on your loan as well as the overall loan amount.

Legal and General will charge you approximately £600 for their advice, which is usually deducted from the amount you receive.

Please call our 24-Hour Helpline: 0330 058 1579

8. Equity Release With Nationwide

Nationwide is one of the biggest high street banks across the UK and East Sussex and have millions of customers up and down the country. They also offer a range of retirement plans to customers, including equity release loans.

Whilst their equity release loans are incredibly popular and trustworthy, they are no longer taking on new clients when it comes to equity release.

Instead, they will only consider and accept pre-existing clients when it comes to equity release. This is mainly due to demand and so that they can provide their clients the best possible quality.

To any pre-existing customers, they offer lifetime mortgages and interest-only mortgages.

All of their plans benefit from a no-negative equity guarantee and allow you to repay up to 10% of the total value of the loan before they will charge you any early repayment fees.

9. Equity Release With Saga

Saga offers a range of financial products to their customers. When it comes to equity release, they offer lifetime mortgages.

They have now helped over 2.5 million people release equity from their homes across the country and have now introduced a money back guarantee.

This guarantee means that if you decide that equity release isn’t for you after you apply for a loan, then you do not have to pay a penny, and if you have already paid then you will be given your money back.

In addition to this, Saga equity release will give you £100 if your equity release funds are not sent into your account within just 40 working days of initially taking out the equity release loan.

Please call our 24-Hour Helpline: 0330 058 1579

10. Equity Release With Sunlife

Sun Life are well known when it comes to equity release, mainly through the use of their TV adverts which have now been airing for years.

They offer lifetime mortgages to anyone aged 55 or over in East Sussex, who owns their own property worth at least £70,000 and wants to release a set amount of money from their property to help to fund their retirement.

However, you are not able to take out an equity release plan directly through Sun Life. Instead, they partner with a company called Standard Life, which are partnered with Key Retirement.

Sun Life will be able to advise you on what plans you should apply for and will help you to initially apply for the loan.

Please call our 24-Hour Helpline: 0330 058 1579

Using An Equity Loan Calculator in East Sussex

Equity release loan calculators are a great way of working out how much equity you are likely to be able to release in East Sussex, without having to apply for a loan there and then.

Equity release calculators will work out how much equity you will be able to release based on the information you have told us, including the estimated value of your home.

In order to do this, it is always a good idea to get an independent home valuation so that you have an up-to-date estimate on how much your property is likely to be worth. Hopefully, you will be pleasantly surprised.

If you want to apply for an interest only equity release mortgage, then it is important to understand that not all equity release calculators are able to take capital repayments into account.

Please call our 24-Hour Helpline: 0330 058 1579

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

Hiring a solicitor is key when it comes to equity release in East Sussex, as it is when applying for any type of mortgage.

A solicitor is required to ensure that everything is above board legally, and that you have received independent legal advice, separate from the lender or equity release adviser.

Your solicitor will talk you through the risks, pros and cons associated with taking out an equity release loan.

They will also work with you to ensure that you are happy with the chosen loan and will make sure that all of your paperwork is in hand.

Your equity release solicitor will take around 6 – 12 weeks to complete the conveyancing process on your equity release loan and will work hard to ensure that the lender and their client are both happy with the loan and mortgage.

It is important that you appoint a solicitor straight after applying for an equity release loan.

You also need to ensure that your equity release solicitor has had prior experience when it comes to equity release and that they are part of a large firm that will be able to take on your case.

Please call our 24-Hour Helpline: 0330 058 1579

Making the Most of Our Website

We know that the amount of information on our website can be overwhelming, so we want to help you navigate it to help you better understand the intricacies of equity release in East Sussex and elsewhere.

Firstly, we have a page detailing all of the plans that you can have, including home reversions, lifetime mortgages, and retirement mortgages. We explain the pros and cons of each one, and who might be eligible for each one.

Next, we have a help centre where we tackle all of your questions, from the general to the very specific. We answer questions relating to moving home, paying interest, and how to qualify for equity release.

In terms of tools, we have an excellent equity release calculator that you can use to get a quick estimate of how much money you could release from your property, as well as a form to fill out for an accurate personalised quote.

Finally, our blog contains many insightful posts on different aspects of equity release, including borrowing in retirement, budgeting tips for older people, and understanding equity release jargon.

Please call our 24-Hour Helpline: 0330 058 1579

Speak to an Adviser Today

It is never too soon to speak to an adviser, as they can help you as you do your early research into equity release. On the contrary, if you are as knowledgeable as can be and you can’t wait to get started, our staff will explain how you can do this as smoothly and safely as possible.

We are aware that some people investigate equity release for a long time, only to realise it isn’t right for them. Don’t worry about this happening to you, as we are more than happy to advise you on the alternative options to equity release if you find yourself in this position.

If we have not answered all of your questions in this article or on our frequently asked questions page, do not hesitate to pose as many questions as you want to our specialists over the phone. They are here to help.

Please call our 24-Hour Helpline: 0330 058 1579

References

[1] https://www.ageuk.org.uk/information-advice/money-legal/pensions/state-pension/changes-to-state-pension-age/

[2] https://nationaldebtline.org/fact-sheet-library/equity-release-ew/#:~:text=Equity%20release%20is%20an%20agreement,regular%20smaller%20payments%2C%20or%20both.

[3] The Sussex areas where house prices are rising at nearly £200 a day https://www.sussexlive.co.uk/news/sussex-news/sussex-areas-house-prices-rising-7136622

[4] House Prices in East Sussex https://www.rightmove.co.uk/house-prices-in-East-Sussex.html

[5] Equity Release Scams https://www.downslaw.co.uk/blog/beware-of-the-equity-release-scams/#:~:text=Equity%20release%20in%20itself%20is,sum%20or%20a%20regular%20income. 

[6] https://www.hsbc.co.uk/mortgages/what-is-remortgaging/#:~:text=Remortgaging%20is%20when%20you%20move,your%20current%20lender%20can%20offer

[7] https://www.halifax.co.uk/mortgages/help-and-advice/what-is-loan-to-value.html

[8] https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/divorce/bulletins/divorcesinenglandandwales/2021

[9] https://www.thetimes.co.uk/article/the-61-000-a-year-care-cost-crisis-k8b8zxdsq

[10] https://www.equityreleasecouncil.com

[11] https://www.citizensadvice.org.uk/benefits/

[12] https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/equity-release-what-happens-on-death/

[13] https://www.gov.uk/joint-property-ownership

[14] https://www.gov.uk/government/statistics/leasehold-dwellings-2020-to-2021/leasehold-dwellings-2020-to-2021#:~:text=3.-,Results,of%20the%20English%20housing%20stock

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