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Equity Release in Plymouth - Lifetime Mortgage Near Me

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

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Equity Release in Plymouth & Near Plymouth

No, you could take out equity from your property no matter where you live in Plymouth.

This includes if you have a small flat in a busy part of the city, a large cottage on the outskirts, or a seaside home.

There are certain requirements for releasing equity, so not everyone in Plymouth would be eligible for an equity release loan. However, there is no location that is unsuitable for equity release.

You can even release equity from another part of the UK, or abroad. To find out whether Equity Release Warehouse can help you if you live outside of Plymouth, have a look at our location pages on our home page.

However, today, the focus is on Plymouth, so we encourage any Plymouth homeowners of retirement age to keep reading.

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What Type Of Property is Eligible For Equity Release in Plymouth?

When you apply for an equity release loan in Plymouth, you will have already found an equity release lender in the area who will decide whether to approve your application.

This lender will have their own rules and regulations regarding which properties they are willing to accept.

As equity release lenders are taking a risk when they offer you a loan that is secured against your property, they are unwilling to approve loans for properties that do not hold much value.

For this reason, your home must be worth at least £70,000 to be approved.

Anything else that affects the value of your property will be considered, such as the condition of your home and the property market in your area.

Some lenders are more flexible than others, so what one lender deems a property with an unacceptable condition, another lender may be deemed appropriate.

In terms of houses vs flats, either one is eligible for equity release. It is true that flats will usually be lower in value (though not always), so apartment owners may get smaller loans, but they would qualify for a loan nonetheless.

However, certain property types are very difficult to release equity from. For example, if you have a leasehold home, you will find it harder to take out equity than if you had a freehold home. This is because you do not have the rights to the entire home.

If you are in this situation, you could think about purchasing a freehold property and releasing equity from that, as the process would be much more straightforward.

Not everyone is willing to do this, but it can be a great way to boost your retirement income, and once the initial stress of moving is over, you can enjoy a peaceful retirement living in the same home for the rest of your life.

Some people find that this is a great opportunity to move as they do not have to think about things that previously affected their lives, such as living near to good schools.

What’s more, they may already want to move to be closer to family or closer to certain amenities, and this can be the perfect opportunity to complete the moving process.

Please call our 24-Hour Helpline: 0330 058 1579

What Type Of Person is Eligible For Equity Release in Plymouth?

First and foremost, to be eligible for an equity release loan in Plymouth, it is essential that you are a homeowner.

You are not borrowing money based on your history of good credit or proof of income. Instead, you are borrowing money secured against your property, which means you have to own a property.

Next, you must meet the minimum age requirement for equity release in Plymouth, which is 55 years old (1).

If you want a home reversion rather than a lifetime mortgage, this minimum figure is usually raised to around 65 years, but different equity release providers have different figures.

Apart from these essential requirements, there is no other expectation of you as an equity release consumer.

Though there are stereotypes about what equity release customers in Plymouth look like and what their background is, we want to reassure you that all types of people get involved with this scheme.

Some people are not lacking in money to the point that they are considered low income, but they want to be able to have zero worries about money, and they find that equity release provides them with the opportunity to do this.

Others are struggling to make ends meet, and they need equity release in order to be able to survive. They put their tax-free cash towards paying off debts and paying the bills so that they can have a comfortable retirement.

Some people even decide to spend their loan on something luxurious such as a second home, which is something they will benefit from for the rest of their lives. The choice is yours, so don’t let stereotypes put you off equity release in Plymouth.

Please call our 24-Hour Helpline: 0330 058 1579

Getting Started With Equity Release in Plymouth

Before you make any concrete decisions, we always advise you to investigate equity release in Plymouth to decide whether it is something that would benefit you.

While you do this, you should also look into the alternatives as you may find a less risky way of boosting your income.

For some people, credit cards or remortgaging work better, but others are drawn to equity release as a way to release money without worrying about repayments.

Next, you should find an equity release adviser who is prepared to explain equity release in detail, and who will not avoid discussing the drawbacks of equity release. We have a team of equity release specialists who would be more than happy to do this for you.

Your equity release adviser should explain how you can get involved with equity release in Plymouth, but we will give you an idea in case you are completely new to the scheme.

You will make an application to a local equity release lender that specifies which equity release plan you want to have, the lender will help arrange a valuation to check the eligibility of your property, and you will meet with a solicitor for help with the legal processes.

Please call our 24-Hour Helpline: 0330 058 1579

The End Of Equity Release in Plymouth

The vast majority of equity release clients will remain on the scheme for the rest of their lives, so the end of the scheme will occur either when they pass away or move into long-term care.

The family informs the lender of the change in circumstances, and then the lender begins to plan the sale of the property, from which they will take a large chunk of the sale proceeds.

If you do decide to exit equity release in Plymouth early, things will work differently, as you are expected to commit to the scheme for life. You will most likely have to pay an early repayment fee, unless your plan includes downsizing protection.

Sometimes, equity release customers want to exit the scheme as they are no longer happy in their property. For example, they may realise it is too large to maintain, it is too far from family, or the bills have become too expensive.

If you are in this position, we advise you to brainstorm different options before deciding to back out of equity release in Plymouth.

If the problem is with the size or layout of your property, you could put some of your equity loan towards home improvements, either by saving up your monthly instalments or requesting a cash lump sum (some lenders will allow this even if your plan is not supposed to offer lump sums).

However, if you are not happy with the location or cost of your property, you could consider moving home with your equity release plan.

The loan would be adjusted to the value of your new property, so you would continue to benefit from the financial aid and you would not have to pay a penalty.

Please call our 24-Hour Helpline: 0330 058 1579

Equity Loans Vs Traditional Loans – Which is Best?

With traditional loans, you have to make regular repayments, and this is a positive or negative depending on how you look at it.

On one hand, you don’t end up owing back a ridiculous amount as you are consistently paying it off, or at least paying it all off by a certain deadline.

On the other hand, this means the lender needs to trust that you will be able to repay, so they have to confirm that you are earning enough income and can be trusted to repay debts, which means people with a bad credit history or low income may be excluded.

Furthermore, if you take out a traditional loan and then there is a change to your financial situation, you are in trouble as you still owe back a large amount of money, and this is how people end up getting into large amounts of debt.

As for equity loans, they can be problematic as the interest accrues over time, and it can result in the homeowner owing back a large sum of money.

If repayments are not made, the loan amount will remain the same, a huge amount of interest will be added to it, and this can result in lots of debt.

However, equity loans may be deemed more accessible than traditional loans as even people with low income can take part, given that they do not need to repay the money while they are alive.

What’s more, it is still possible to make repayments with many equity release plans nowadays, so you can enjoy an obligation-free loan whilst still making contributions if you are in the position to do so.

Please call our 24-Hour Helpline: 0330 058 1579

Find Out More About Equity Release in Plymouth

There is much more information out there about traditional loans than equity loans, so we know that some people are not aware of exactly what equity release is or how it works.

That’s why we have free consultations for new customers to get acquainted with the scheme and decide whether it’s right for them.

To have a consultation, simply call us on 0330 058 1579 any day of the week from 8am-8pm or request a callback and our expert team will be in touch as soon as we can.

In the meantime, you could have a look at all the different equity release products that are available in Plymouth, from lifetime equity release mortgages and retirement interest-only mortgages to home reversions.

We cannot guarantee that you will be eligible for every single one of these, but there will almost certainly be a great plan for you if you meet the basic requirements of equity release in Plymouth.

If you are curious about the nuances of equity release and you want to figure out the implications of equity release on things like means-tested benefits and moving house, head to our blog where we have many informative articles on subjects like this.

Overall, we want to reassure you that equity release in Plymouth is a very safe scheme that has been tried and tested by hopeful homeowners for many years.

When you sign up to equity release with a reliable equity release lender, you are making a big commitment, but with an appropriate amount of research, there is no reason to be concerned about your financial security.

If you are still not convinced, then perhaps you should do some more research before making a final decision. Read our post on the alternatives to equity release and see if any of these resonate with you.

We also encourage you to speak to people you care about, particularly your family, about this decision.

Research shows that two thirds of equity release consumers discuss their plans with their family, and we advocate for this as your family may alert you to issues you haven’t considered, or conversely, point out some positives you haven’t thought of (2).

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 Plymouth:

1. Citizens Advice Plymouth

Address: Council Offices, Priory Rd, Spalding PE11 2XE

Telephone: 0808 278 7996

Website: https://citizensadviceplymouth.org.uk/

2. Age UK Plymouth

Address: The William & Particia Venton Centre, Astor Drive, Mount Gould Rd, Plymouth PL4 9RD

Telephone: 01752 256020

Website: http://www.ageuk.org.uk/plymouth/

3. Age UK Plymouth

Address: The William Venton Centre, 8 Memory Ln, Plymstock, Plymouth PL9 9GH

Telephone: 01752 256020

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

4. Age UK

Address: 2 Haye Rd S, Elburton, Plymouth PL9 8HJ

Telephone: 01752 492680

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

You can find further resources on Plymouth Council’s website. 

Please call our 24-Hour Helpline: 0330 058 1579

References

[1] Equity release: what are the options for older people? https://www.theguardian.com/money/2020/feb/07/equity-release-what-are-the-options-for-older-people

[2] Two-thirds of equity release customers consult family over their decision https://www.yourmortgage.co.uk/equity-release/two-thirds-of-equity-release-customers-consult-family-over-their-decision/?ac=6&as=145

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