Equity Release Rotherham - Lifetime Mortgage Near Me

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

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Equity Release Rotherham and Near Rotherham

An increasing number of homeowners are turning to equity release in Rotherham as they near their retirement years. Releasing equity from your home is a popular way of gaining access to some extra cash that is currently tied up in your home.

Think about it, the equity in your home includes the initial deposit you put down on the property, including your monthly mortgage payments minus the interest on your loan [1].

This means that you can take out a loan and gain access to this equity, without having to sell up and use the proceeds from the sale of your home. You do not have to repay the loan until you pass away, at which time your property will be sold [1].

The money, or proceeds from the sale of the home will pay off the loan instead of going to your loved ones as inheritance. You will be charged interest, as you would on any other type of loan. However, the interest on this type of loan is fixed [1].

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Types of Equity Release in Rotherham

There are two main types of equity release in Rotherham. The most popular type of equity release in Rotherham is a lifetime mortgage.

This allows you to release a significant amount of money from your home without ever having to sell. You will be charged interest on your lifetime mortgage but remain the sole owner of your home [2].

Home reversion plans are the second type of equity release in Rotherham and involve selling a percentage of your property to a lender in exchange for equity. You get to remain living in your home for as long as you want [2].

With both types of loans, you can opt for either a lump sum payment, or a drawdown plan which means that you would receive a number of smaller payments.

What happens when I pass away or vacate?

Once you pass away or vacate the property, your equity release loan will need to be repaid. You will usually have 6 months to do this, and your next of kin will usually be responsible for selling the property if you have passed away.

If the proceeds from the sale of the home does not cover the loan amount, then you will be covered by the no negative equity guarantee. This means that neither you nor your loved ones will have to pay the difference.

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Advantages of equity release in Rotherham

There are numerous advantages to equity release in Rotherham. The main advantage is that you can spend the money on whatever you want. Lots of people choose to spend their money on home renovations, further education for their grandchildren or helping their children or loved ones with a house deposit [3].

The other advantage to equity release in Rotherham is that you do not have to repay the loan whilst you are alive, unlike other loans.

Likewise, you get to remain living in your property whilst you enjoy spending the equity, without having to sell up and downsize [3].

Disadvantages of equity release in Rotherham

The main disadvantage to equity release in Rotherham is that instead of leaving your home to your next of kin(s), you will be forced to sell your home to pay off the loan [3].

Likewise, you will be charged interest on your loan, which will turn into compound interest as your loan continues. As equity release loans are designed to last for as long as you live, this could increase your total loan amount significantly [3].

Finally, there are also several set-up costs associated with taking out equity release in Rotherham, including the cost of a home valuation, an adviser and a solicitor [3].

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Equity release drawbacks and alternatives

The main alternatives of equity release include downsizing and borrowing money from family members. You can learn about the disadvantages of equity release here.

What can an equity release loan be used for?

The money you get from opting for equity release in Rotherham can be spent on pretty much anything you want, including a holiday, a new car or simply a better lifestyle.

Other people want to spend their equity release loan home renovations or further education for their loved ones [4].

If you are struggling financially entering retirement, then you could release money from your home to ensure a better lifestyle for yourself and your family during your retirement years [4].

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What should I avoid spending my equity release loan on?

Your adviser will always recommend that you spend your equity release loan on something that will benefit you in the long run, rather than a one-off expense such as a holiday or a car.

The money you receive by opting for equity release in Rotherham should always go towards benefiting yourself or your family in the long run, such as creating a better lifestyle, making some home improvements or paying off a loved one’s mortgage or University fees.

Can I take out an individual loan that excludes my partner?

You are able to take out an individual loan that excludes your partner. Whilst this isn’t common, it might be the best option if your partner is aged under 55 years old and is ineligible to take out an equity release loan.

What will happen to my benefits?

If you are currently claiming benefits and you apply for equity release in Rotherham, then it’s important to understand that if you get approved, these will likely stop or be affected in some way.

In most cases, this is the case, although this does depend on the type of plan you apply for and which lender you plan on borrowing from [5].

If you opt for equity release in Rotherham, your equity release adviser will be able to find out what impact applying for your loan will have on your benefits, so that you can make an informed decision on what to do.

If you do get approved for equity release in Rotherham, you will be responsible for informing the Department for Work and Pensions. If you fail to do so, you could be fined [5].

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Why do I need a solicitor for equity release in Rotherham?

When applying for equity release in Rotherham, you will be required to hire an equity release solicitor to work on your behalf. They will process your application for you and do all of the conveyancing work.

Most lenders won’t accept your application unless you are prepared to go through a qualified equity release specialist or adviser as well as a solicitor.

How is the equity release industry regulated?

The equity release industry is now regulated by a number of bodies, including the Financial Conduct Authority [6] and the Equity Release Council [7].

The Financial Conduct Authority regulates all financial services and will deal with any complaints anyone might have.

The Equity Release Council represents 90% of the equity release sector, ensuring that all standards are met across the industry, including across all advisers, solicitors and lenders.

The Department for Work and Pensions will also need to be informed if you apply for an equity release loan and are currently receiving benefits of any kind.

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Speak to Equity Release Warehouse

If you are interested in applying for equity release in Rotherham, then speak to a member of our team at Equity Release Warehouse.

Our team of specialist equity release advisers will talk you through the process from start to finish and will even use our very own equity release calculator to determine how much you might be able to release.

Our team will never put any pressure on you to take out a loan, our advisers are simply on hand to provide you with all of the relevant and necessary information.