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Equity Release in Lewisham - Lifetime Mortgage Near Me

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

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Equity Release in Lewisham & Near Lewisham

If you live in Lewisham and are over 55 years old, then you might want to consider equity release in Lewisham as a way of gaining access to extra funds.

Equity release is essentially what it says on the tin. It is when you release some of the equity that has built up in your home over the years.

Equity release is another form of loan, which is then repaid after you pass away and sell the property.

Equity release is incredibly popular throughout the UK, and the two main forms of equity release are lifetime mortgages and home reversion plans.

There are many different types of equity release plans, and there are many reasons why someone might choose to release equity from your home.

Before you apply for equity release in Lewisham, you should speak with an equity release advisor first to check that equity release in Lewisham is right for you.

If you are considering equity release in Lewisham, then you should seek the help of a fully qualified advisor with knowledge and experience in this industry.

Your equity release advisor will be able to guide you through the process, from start to finish.

They won’t ever push you or put pressure on you to make a decision. They are simply there to provide you with the information you need to make an informed decision.

If you think that equity release in Lewisham might be something that you are interested in, then speak to one of our specialists at Equity Release Warehouse for a kick-start into the process.

Please call our 24-Hour Helpline: 0330 058 1579

Why is Equity Release in Lewisham So Popular?

Across the UK, people always deem property as a good and safe investment.

Although the housing market might have temporary peaks and troughs, the housing market is generally always on the rise. In fact, the housing market in Lewisham has been steadily on the rise for the past few years.

When the housing market rises, so does the value of properties in that area. This means that lots of people will now be able to sell their house for a lot more money than they first bought it for.

This subsequently means that more and more people are sitting on a considerable amount of equity in their homes.

When this happens, these people can often be deemed ‘asset rich, but cash poor’ as all of their wealth gets tied up in property.

This is why more and more people across Lewisham and the rest of the UK are now considering equity release as a way of getting their hands on some of the cash that has been tied up in their property for so long.

House prices in Lewisham have increased considerably over the past decade. This is because Lewisham is a highly popular place to live.

Lewisham is in Zone 2 and has fantastic commuter links to London. It also has a considerable sense of culture and diversity, making it one of the most popular places to live in South East London.

In fact, according to Rightmove [1], Lewisham house prices are still continuing to rise. In fact, the overall average price of a house in Lewisham is £535,193 which is above average when it comes to the rest of the UK.

The majority of properties that sold over the past 12 months in Lewisham were flats, which sold for an average of £370,051 which again, is above average for this type of property.

Terraced houses in Lewisham sold for an average of £735,587 and semi-detached houses sold for a staggering average of £801,180 [1].

As you can see, these house prices are staggeringly above average. If you bought your house or property in Lewisham many years ago, then the increase in house prices in your area could mean that you are now sitting on a considerable amount of equity.

If you live in the Lewisham area and are considering equity release in Lewisham as a way of gaining access to more cash, then you should speak to a member of the Equity Release Warehouse team for advice and support on how to take the first steps.

Please call our 24-Hour Helpline: 0330 058 1579

Why Do People Consider Equity Release in Lewisham?

Thousands of people across Lewisham are considering using equity release in Lewisham to free up some of their own funds.

There are no right or wrong reasons why people should consider equity release in Lewisham, but it is always best to check with your equity release advisor that you are releasing equity from your home for the right reasons.

If you are over 55 years old, then you will most likely have children and grandchildren. Lots of people aged 55 or over consider equity release in Lewisham because they want to help their family and loved ones financially.

Some people use their equity release money on financing their grandchildren’s university fees, or by using the money to contribute to a loved one or grandchild’s house deposit.

However, other people want to spend their equity money on themselves. For example, you might want to dabble in some home improvements.

You might choose to extend your house or make it more comfortable for you as you get older.

This will not only improve your lifetime, but it will also most likely increase the value of your property when your loved ones and next of kin come to sell when you pass away and need to repay the equity release loan.

If you choose certain lenders, then they might make it mandatory to pay off the remainder of your mortgage before you can use your equity release funds for anything else.

If this is the case, then you will always know beforehand and this will be written up in both your illustration and your contract.

If you are aged 55 or over, then you might want to release cash in order to pay for any future healthcare or medical bills you might need to pay, including the cost of a carer or live-in nurse.

However, the majority of people who release equity from their home in Lewisham or who are considering equity release in Lewisham do so because they want to live a more comfortable life and happy retirement.

If you are considering equity release in Lewisham, then you must be honest with your advisor on why you want to consider equity release in Lewisham. This is so that they can recommend the most appropriate and useful equity release loans for you.

Please call our 24-Hour Helpline: 0330 058 1579

How Do I Know Who To Go With?

The most important stage of equity release in Lewisham is the start. It is incredibly important that you speak with an equity release advisor about what plans you should opt for and which lenders you should choose to go with.

In order to ensure that you are making the very best decision, your equity release advisor will search the market for the very best product for you, given your situation and finances.

In order to ensure that all equity release advisors are up to scratch, the industry is monitored by the Equity Release Council [2] and the Financial Conduct Authority [3].

These two institutes are in place to ensure that all plans and lenders are fair and trustworthy. They not only create the standards across the industry, but they also maintain the standards too.

This means that they will help individuals navigate their way through any issues or complaints that they might have during their equity release journey.

The Financial Conduct Authority are so strict on its equity release rules and standards that they even hold an exam for those who wish to be a qualified equity release advisor in Lewisham and across the rest of the UK.

The exam has extremely strict qualification criteria [4], ensuring that all equity release advisors are at the top of their game and not only know the ins and outs of equity release but have an in-depth understanding of them too.

If you are considering equity release in Lewisham then you should make sure that your equity release advisor is monitored by the Equity Release Council and takes their rules and standards very seriously.

If you want to find out whether your equity release advisor is monitored by the ERC or the FCA, then you can ask them on one of your initial consultations or by checking on their website.

When you first get in contact with an equity release advisor, you will have an initial meeting with them to discuss your reasoning for equity release.

In order to gain a full understanding of your motivations for equity release in Lewisham, they will ask you a number of different questions about your financial setup.

However, it is important to remember that just as they will want to ask you questions, you will certainly need to ask them a number of questions too.

By doing so, you will gain a full understanding of how qualified they are to see you through the equity release process.

For example, you could ask them some of the following questions to get started:

  • Which lenders do you usually put forward to your clients and why?
  • What interest rates do your lenders usually offer?
  • Do you stand and work by the standards set by the Equity Release Council and the Financial Conduct Authority?
  • How quickly do you tend to work?

These questions are a good starting point to get to know your equity release advisor a bit better and to figure out if they are the right fit for you.

If you are considering equity release in Lewisham, then speak with an equity release advisor so that you know which lenders you should opt for.

Start today by speaking to a member of the Equity Release Warehouse team for help and support through the process.

Please call our 24-Hour Helpline: 0330 058 1579

The Benefits of Equity Release in Lewisham

By now, you should have a good idea about why someone would choose to opt for equity release in Lewisham.

However, the more you read about equity release the more you learn and the more you realise just how many benefits there are to releasing equity from your home.

When you sit down with your equity release advisor, they will be able to talk you through the pros and cons behind equity release in Lewisham.

It is important to remember that by listing the benefits of equity release in Lewisham, they are not trying to force you into making a decision.

They are simply providing you with all of the necessary information so that you can make an informed decision.

The biggest benefit when it comes to equity release in Lewisham is that you do not have to pay off the loan whilst you are still alive. You only repay the loan after you pass away or move into long-term care. The money from the sale of your house will pay off the loan.

The other main benefit of equity release in Lewisham is that you are allowed to stay living in your home for as long as you want. You will never be forced to make a decision that you feel uncomfortable with or be asked to leave by any lender at any point.

This is fantastic as it is one of the only few options that allow people to gain access to their money whilst remaining in their house.

Selling your house and moving houses when you are aged 55 or over might not be the best or easiest option, which is what makes equity release in Lewisham such an attractive proposition.

Please call our 24-Hour Helpline: 0330 058 1579

The Cons of Equity Release in Lewisham

It’s true that the advantages of equity release in Lewisham can outweigh the drawbacks of equity release.

However, as our advisors are dedicated to giving you the full picture, it is important that you understand the cons when it comes to equity release in Lewisham.

One of the biggest concerns when it comes to equity release in Lewisham is that you might end up leaving less inheritance for your loved ones than if you were to simply sell your property as normal on the housing market.

This is particularly true if you opt for a home reversion plan, as you will sell part of your home in return for access to the equity in your home.

Equity release also isn’t the cheapest long or short-term option, either. For example, there are a number of set-up costs when it comes to equity release in Lewisham, such as the cost of an advisor, solicitor and valuation.

It is also important not to forget that you will be charged interest on your equity release loan. This interest will only build up and compound over time if it is not paid on a regular basis.

In addition to this, qualifying for an equity release loan might mean that you are not eligible for other tax exemptions or benefits in the future.

If you currently receive any means-tested benefits, then you will no longer qualify for or receive these funds if you are to take out an equity release loan.

For this reason, it is important to think about whether you will want to qualify or apply for any benefits in the future.

When you weigh up the pros and cons of equity release in Lewisham, it is clear that there are more benefits than negative aspects.

However, if you are serious about equity release in Lewisham then it is really important that you weigh up these pros and cons carefully with the help of an equity release specialist.

Each situation is different, as is each equity release application. This is why it is important to engage with an advisor so that they can help you to navigate your way through the different products on offer.

If you are releasing equity to combat the cost of living, then it might be better to first try to see if you can better manage your budget. Below, we list organisations that may be able to help in Lewisham:

1. Lewisham Plus Credit Union

Address: 262 Kirkdale, London SE26 4RS

Telephone: 020 8778 4738

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

2. Citizens Advice Lewisham

Address: Citizen Advice Lewisham, Bonfield Rd, London SE13 5EU

Telephone: 0800 231 5453

Website: https://citizensadvicelewisham.org.uk/

Please call our 24-Hour Helpline: 0330 058 1579

Equity Release in Lewisham – The Facts

Unfortunately, over the past few decades there have been many different misconceptions and myths flying around about equity release across the UK.

This means that thousands of people across Lewisham and the rest of the UK have decided that equity release is not for them.

However, these myths and misconceptions are slowly being debunked and corrected by lenders, advisors and by our team at Equity Release Warehouse.

This is why we have compiled a list of factors about equity release in Lewisham that will help individuals to gain a true and clear picture of exactly what equity release is and can do for you.

1. You will benefit from a fixed interest rate

Every product for equity release in Lewisham comes with a fixed interest rate. This means that the interest charged on your equity release scheme will be the same throughout your entire plan.

This will not change, regardless of what happens in the market or what the Bank of England [5] sets as the interest rate.

With normal mortgages, your interest rate will either be variable or fixed for a certain number of years.

This means that every time you get a new rate, the amount you repay each month will either move up or down, or it could always stay about the same.

However, the beauty of equity release in Lewisham means that the amount you repay each month will stay the same, as it will stay this way until you pass away or move into long-term care.

If you are considering equity release in Lewisham and want more information on interest rates, then speak to a member of the Equity Release Warehouse team for more information.

2. Your inheritance will not be lost

Unfortunately, one of the major myths and misconceptions when it comes to equity release in Lewisham is that by opting for equity release, you are preventing your loved ones and next of kin from getting any inheritance at all.

For this reason, people wrongly believe that equity release is a selfish decision. However, this is simply not the case.

When you release equity from your home in Lewisham, you are only releasing a certain amount of equity, usually anywhere between 30% and 60%.

This means that you will still be able to leave a considerable amount of inheritance for your loved ones and next of kin.

A great way to ensure that you still leave enough inheritance for your chosen next of kin is by making sure that you pay off the interest on the loan as you go, to prevent this from building up.

Otherwise, your loved ones and next of kin will be forced to pay off this interest when they sell your property, which will reduce the amount of inheritance that they receive.

3. No negative equity guarantees

Choosing equity release in Lewisham is a win-win situation. You get access to the equity in your home and thanks to the no negative equity guarantee, you will also be protecting your inheritance and loved ones down the line, after you pass away.

By opting for equity release in Lewisham, even if your house reduces in value, your loved ones will never be liable to repay any money.

This means that even if your property sells for less than the amount of money you owe from your equity release loan, your loved ones will not have to pay the difference. The responsibility lies with the lender, as they take on this debt.

This means that you are making a secure and responsible investment, not only for you but for your loved ones in the future, too.

The Equity Release Council ensures that all equity release products across Lewisham and the rest of the UK include a no-negative equity guarantee, which means that this is now standard across the industry.

4. Flexible repayment plans

Another key benefit when it comes to equity release in Lewisham is that there are a number of different ways you can repay the interest on your loan.

You can either pay this back through monthly repayments, or you can choose to leave the interest on your loan and only pay it off when you sell your house after you pass away.

However, please be aware that this will mean that the interest will compound and could get out of control. If this happens, you might end up leaving less inheritance for your loved ones.

If you want to apply for equity release in Lewisham but need more information on interest rates, then speak to a member of the Equity Release Warehouse team.

5. You get to stay living in your home

Many people across Lewisham and the rest of the UK consider equity release because they need access to funds but simply do not want to move house.

This could be for a number of different reasons, but the main reason is that they do not want to move out of the home they have developed so many memories in.

By choosing equity release in Lewisham, you do not have to move house. You are able to remain living in your home for as long as you want, and will never be asked to move by your lender.

You will remain the sole owner of the property and are fully responsible for maintaining the property and any garden.

In fact, you should make a huge effort to maintain the condition of the property, as this will increase the value of the property and therefore how much inheritance your loved ones will receive when you pass away or move into long-term care when the property will be sold.

If you want more information on whether you are allowed to ever sell your house when you take out an equity release loan, then read our page on ‘Can I sell my house if I have an equity release plan?’

What Am I Allowed to Spend My Equity Release On?

Despite what many people think, you are allowed to spend your equity release money on a number of different things.

For most lenders, there are no real restrictions on what you can spend your money on.

However, most lenders will ask you to pay off any existing mortgage with your equity release loan before you spend it on anything else.

Although you will only really be considered for an equity release loan if you only have a small amount of mortgage left to pay, this will be written into your contract if it is something that the lender requires you to do.

You can also use your equity release in Lewisham to pay off any outstanding debts that you might have. However, this does depend on what type of debt you are suffering from, as some lenders only allow you to pay off unsecured debt instead of secured debt.

If you are currently struggling with debt, then you might be able to pay off some of these debts with your equity release funds, depending on what category of debt you suffer from.

By doing this, you will be securing your picture and improving your credit score which will also help you in other aspects of life and applying for any other type of loan in the future.

Alternatively, you can use your equity release cash to pay for a series of different home improvements which might increase the value of your home and make the house more comfortable and practical for you as you get older.

This might include things like more space, stair lifts or handrails should you ever need them.

By using your equity release money on home improvements, you will hopefully be increasing the value of your house which will in turn hopefully translate to more inheritance for your loved ones and next of kin.

Finally, some people use their equity release to fund a second home. However, if this is your plan then you will need to inform your equity release advisor at the earliest possible moment.

This means that you might need to opt for a certain type of equity release loan.

References

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

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

[3] https://www.fca.org.uk

[4] https://www.fca.org.uk/publication/documents/equity-release-all-activities.pdf

[5] https://www.bankofengland.co.uk

 

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