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Equity Release in Brighton - Lifetime Mortgages Near Me

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

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Equity Release in Brighton & Near Brighton

You may assume equity release is something people only pursue as a last resort, as this is the media’s general interpretation of the scheme.

For example, recent news revealed that equity release is often pursued by people who are in high levels of debt or who lack pension savings (1).

This is a valid reason to consider equity release in Brighton. However, it’s not the full story. People get equity release in Brighton for many different reasons, such as:

  • A couple wants to purchase a second home but they can’t afford it
  • A couple are going through a divorce and they are looking for an easy way to split their shared assets
  • An elderly person has not got enough savings to cover their care home costs
  • Someone wants to renovate their home without getting into traditional debt

Of course, equity release in Brighton isn’t the only option in these scenarios. However, it is one of the options homeowners should consider as a means of increasing their income.

The main things that attract these people to equity release are:

  • You don’t need a lot of money to get started
  • The loan doesn’t need to be repaid
  • You can release large amounts of money
  • The cash is tax-free
  • There are a variety of products to choose from

Who Can Get Equity Release in Brighton?

Equity release in Brighton is for people aged 55 years or more who own a property that is worth £70,000 or more. Houses and apartments can both be considered for equity release in Brighton, but leasehold properties and retirement apartments are less likely to be suitable.

It is much more likely that a prospective equity release in Brighton customer will be approved by a lender if their property is in good condition. During the property valuation, this will be taken into account.

Are There Any Reasons to Consider an Alternative to Equity Release in Brighton?

Everyone should learn about the pros and cons of equity release in Brighton, as there may be drawbacks that prompt you to look into an alternative. Some reasons you may want to consider an alternative to equity release in Brighton include:

  • You are not eligible for equity release in Brighton (you may be too young, not a homeowner, or the owner of a property that is worth less than £70,000)
  • You want to move house (equity release allows you to stay in the same home)
  • You already have enough money in the form of a pension, savings etc
  • You want to avoid any form of debt
  • You don’t like the idea of compound interest
  • None of the equity release in Brighton products appeal to you
  • You prefer the idea of traditional borrowing (repaying the money within a set time frame)

How Will Equity Release in Brighton Impact My Retirement?

For most equity release in Brighton customers, the scheme is beneficial for their retirement. It allows them to boost their income in preparation for not receiving a steady income through work.

If you are entitled to a large equity release in Brighton loan, it can have a significant impact on your life in retirement.

As you can get a loan-to-value (LTV) ratio of 20-60% of your property value in a lump sum or monthly payments, you would be able to fund various things that you may not have been able to afford before equity release.

As well as providing financial support, equity release in Brighton allows consumers to buy a holiday home or a buy-to-let property. There are plans designed for specific situations like this, and pursuing these goals via equity release often means the cost is lower and the benefits are higher.

Often, customers find that equity release in Brighton is helpful for coming up with a later life plan. They can budget for long-term care using their loan, as well as arranging their inheritance according to how much money they will have released.

It has to be said that there are possible negative effects on your retirement when you release equity. This is why we advise speaking to an equity release in Brighton expert before you meet with an equity release lender.

What is Equity Release Compound Interest?

When you take out equity, interest is charged on your initial loan amount. Compound interest is interest that is charged on the total owed amount each year. As the owed amount increases alongside the interest rate, the compound interest builds over time.

This can be avoided if you get an equity release in Brighton lifetime mortgage product that cancels out compound interest, such as the interest only plan.

When you repay the interest every month, the compound interest cannot possibly build, which means this is never an issue for you.

What is the Difference Between Getting a Lump Sum vs Monthly Payments?

There are many equity release in Brighton products that leave it up to the customer to choose between getting a lump sum or monthly payments. However, some plans only offer one of the two, or they may even offer a combination.

If you opt for a lump sum, there is more choice when it comes to what to spend your loan on. This method is best for big purchases, as you would need the funds as soon as possible.

Some people also simply prefer to have access to all of the money at once.

Regular or monthly payments are preferable for people who are concerned about budgeting their loan and not overspending. They are also good for regular financial commitments that the customer wants to keep, such as paying the bills every month or paying off a loan on a monthly basis.

If you can’t decide which method to opt for, you could get a drawdown lifetime mortgage. This comes with a lump sum as well as a cash reserve function, so you can access your equity release in Brighton funds whenever you need to.

Drawdown plans have the benefit of low interest as interest is only charged on the lump sum and any additional funds you withdraw. If you leave the cash in the reserve, you will not be charged interest on it.

What is the Role of an Equity Release Specialist?

Equity release in Brighton specialists are there to talk you through equity release in as much detail as possible, while keeping it simple. They are equipped to answer any complex questions you have about the scheme, as they are trained to understand each and every aspect.

All equity release consumers must meet with a specialist at least once before releasing equity.

This is a precautionary measure that is in place to protect customers; you are given the chance to hear the pros and cons of equity release in Brighton before making a final decision.

It’s advisable to find an equity release specialist who is affiliated with the Equity Release Council, as this means their activity is regulated and therefore the advice you receive should be neutral.

Keep this in mind as you explore the entire equity release in Brighton process. Make sure every professional that you deal with is a member of an official equity release regulatory body, such as:

Can You Give Me a Quote for Equity Release in Brighton?

Yes, we can give you an estimate for the loan you could receive if you pursued equity release in Brighton. Simply fill out our quote form with your personal details and we will calculate an accurate estimate.

We also have a free equity release calculator that processes your basic details and calculates an estimate for you. We do not receive your details when you do this, so you can get an estimate without being contacted by our team.

If you have any questions about the quote you have received for equity release in Brighton, don’t hesitate to get in touch with us.

There are many reasons for your loan amount being higher or lower than expected. To give you a general idea, here are several examples.

Example 1

You’re 70 years old and your house is worth around £400,000.

Estimated loan amount: Up to £170,000

Example 2

You’re 86 years old and your house is worth around £200,000.

Estimated loan amount: £108,000

Example 3

You’re 57 years old and your flat is worth around £500,000.

Estimated loan amount: £116,875.

Keep in mind that our calculator cannot take into account all of the factors that will influence your eligibility for equity release in Brighton, such as your property condition, whether you have an outstanding mortgage, and your location.

What’s more, the loan amount relies heavily on the value of your property, and you may not know the exact value. This all means the calculation you receive here is likely to be different to your final Equity Release Warehouse quote.

How Do I Know Which Equity Release in Brighton Lenders are Reputable?

This is another case of making sure you’re only approaching regulated professionals.

We cannot tell you which equity release in Brighton lender to contact, but we can give you the names of UK providers that are regulated.

For example:

Can I Budget Instead of Releasing Equity?

If budgeting is something that could realistically help you to achieve financial security in retirement, this is absolutely something you can do instead of getting equity release in Brighton.

We have some great top tips for budget planning in older age, from creating a monthly spreadsheet to researching grants you may be entitled to. You could also speak to a financial adviser to find ways to reduce your outgoings.

That all said, for most people in a precarious financial situation, it isn’t a case of adjusting their budget and moving on.

When there is a long-term issue, you may need to get involved with a scheme like equity release in order to stay safe and healthy in retirement.

Alternatively, you could consider other means of help such as government benefits, traditional loans, lending from family, downsizing, or remortgaging.

Will My Inheritance Be Reduced If I Pursue Equity Release in Brighton?

Most of the time, people’s inheritance decreases when they have released equity.

As the provider needs to take back the money that was lent by selling the customer’s home, the family don’t inherit all of the funds as they might in most situations.

However, equity release in Brighton regulators have acknowledged the negative effects equity release has had on inheritance, and things are changing.

It is now much easier to get inheritance protection, which means you get to spend your loan while knowing that your family will definitely inherit the amount you have set aside for them.

Is the Cost of Equity Release Worth it?

We cannot say that equity release in Brighton is worth it for everyone. However, the cost is very low compared to the benefits, so for many people, it’s worth it.

The average cost of equity release is between £1000-£3000, excluding indirect costs such as compound interest.

The reason we exclude compound interest is that it is not classed as traditional debt, and when there is a no negative equity guarantee, it does not negatively affect the customer or their family.

When you think about the amount of money you can release through equity release in Brighton, the initial costs are very low in comparison.

Even if this fee seems too high for you at the moment, you can ask to loan the money and it will be deducted from your equity release in Brighton funds.

Can Equity Release Warehouse Help Me?

We are here to give professional advice on equity release in Brighton. If you have any questions or concerns about the scheme, please get in touch with us on 0330 058 1579 to find out exactly how it works.

We cannot recommend a certain lender to you, as we are an unbiased organisation. However, we will give you top tips for keeping equity release in Brighton safe, such as sticking to regulated providers and advisers.

Get help across Brighton now in Aldrington, Bear Road, Bevendean, Black Rock, Brunswick, Carlton Hill, Coldean, Devil’s Dyke, Elm Grove, Hangleton, Hanover, Hollingbury, Hollingdean, Kemp Town, Kemptown, The Lanes, Mile Oak, Montpelier, Moulsecoomb, New England Quarter, North Laine, Old Steine, Old Steine Gardens, Ovingdean, Patcham, Portslade, Preston, Prestonville, Roedean, Rottingdean, Round Hill, Saltdean, Seven Dials, Stanmer, West Blatchington, West Hill, Westdene, Whitehawk, Withdean, or Woodingdean.

References

[1] Record mortgage debt repayments as equity release “changes market” https://www.introducertoday.co.uk/breaking-news/2023/10/record-mortgage-debt-repayments-as-equity-release-changes-market

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