Equity Release Wandsworth - Lifetime Mortgage Near Me

Equity Release Wandsworth & Near Wandsworth

Equity release Wandsworth, London, works by allowing people access to the money and equity inside their home whilst allowing them to remain living in their home for as long as they live.

Most homeowners who are struggling for money might think that selling their house and downsizing is the only option.

For many, this is unfortunately the case. However, if you are aged over 55 years old, then you might qualify for equity release in Wandsworth via a lifetime mortgage or a home reversion plan.

When you first apply for equity release in Wandsworth, you will need to consult with an equity release advisor or an equity release specialist to ensure that you will qualify for your loan and that you are choosing the right kind of loan for you.

Your advisor will be able to educate you on the pros and cons of equity release in Wandsworth, and will be completely transparent with you to ensure that you are making the right decision for you.

Unfortunately, not everyone who applies for equity release in Wandsworth qualifies, and applying could set you back anything between £1,000 and £3,000, which is why it is incredibly important to check that you will qualify before applying with the help of an equity release advisor [1].

Unlike other types of mortgages, you don’t have to repay your equity release loan whilst you are still alive. In fact, you only have to repay the loan (in full, that is) after you pass away.

Whilst this might be confusing for some, the premise is actually quite simple. You don’t have to repay the loan until you pass away or move into a care home, upon which your house will be sold and the money from the sale of the house will be used to pay off the equity release loan.

Your next of kin will oversee the sale of your property and will ensure that the money from the sale is used on paying off the loan. Unfortunately, this means that they will most likely not receive anything from the sale of your house.

There are ways of ensuring that your loved ones are at least left something in inheritance. You can choose to repay some of your loan early, or can opt to pay off the interest on your loan each month whilst you still live.

This will reduce the amount of compound interest you are charged significantly. Hopefully, this will mean that there might be some money left over from the sale of your house to go to your son, daughter or next of kin as an inheritance.

You can opt to receive your money in two ways. You can choose to receive your money in one large lump sum or through smaller payments, called a drawdown plan. All lenders are regulated by the Equity Release Council to ensure all is above board.

Applying for equity release Wandsworth is really simple. As long as you are aged 55 or over, own your own home worth at least £70,000 and have already paid off a large chunk of your pre-existing mortgage on the same property. This property must also be your main residence in the UK.

All advisors we work with are regulated by the Financial Conduct Authority and Financial Ombudsman Service. Advisors are able to recommend equity release products covering the entire market, and allow you to lend from reputable lenders such as  Scottish Widows, Legal & General, Aviva, Liverpool Victoria (LV), Canada Life, more2life and Hodge.

Please call our 24-Hour Helpline: 0330 058 1579

How much does equity release Wandsworth cost?

Whilst you are able to release a significant amount of money when you opt for equity release Wandsworth, applying for the loan can set you back a few thousand pounds.

Some people might be able to pay these fees after they receive their equity release money, whereas some others might be asked to pay these fees up front before they receive their equity release money.

There are a number of things that you will have to pay for when you apply for equity release in Wandsworth.

For example, you will have an application fee when you first apply. You will then have to pay up to £100 – £300 for someone to come to value your house, so that the lender can make a fair assessment when it comes to the value of your home.

You will then have to appoint a solicitor to act on your behalf. This is a very similar process to when you buy a house normally and apply for a mortgage.

Your solicitor will handle all of the contracts involved in the loan and mortgage, and will also be able to advise you should any complications occur.

These initial costs could cost you anything between £1,000 and £3,000. How expensive these things cost depends on a number of different things including the value of your home, how complicated your equity release application is and where you are based in the country.

People often forget that as with any loan, you will be charged interest on your equity release loan. Unfortunately, the majority of people who qualify for equity release in Wandsworth ignore the interest on their loan and allow it to grow into compound interest.

The loan will last for as long as you live, so if you live for 20 years after initially taking out the equity release loan, then you will be charged interest for 20 years, which will compound.

This is something that you will have to take into account when applying for equity release in Wandsworth. Whilst the interest on your equity release loan might not be costing you anything, it will be reducing the amount of inheritance your loved ones are left after the sale of your home.

For this reason, some people choose to pay off the interest on their loan on a monthly basis, as this significantly reduces the amount of compound interest that builds up over the years.

If you are interested in doing this, make sure that you make your equity release advisor aware of this. They will be able to create your own personalised plan to ensure that you are able to afford to do so.

Please call our 24-Hour Helpline: 0330 058 1579

Who is able to qualify for a lifetime mortgage?

In order to qualify for a lifetime mortgage in Wandsworth, you have to be aged at least 55 years old.

Whilst each lender has different qualification criteria, most lenders do not offer lifetime mortgages to anyone younger than 55 years old as you are most likely going to live another 20 or 30 years, meaning that the bank would have to wait longer until they receive a return in investment.

You also have to own your own property in the UK and this property has to be worth a minimum of £70,000 regardless of where you are in the UK.

There usually isn’t an upper limit when it comes to houses worth millions of pounds, but it might mean that you have to seek more specialised help and support when it comes to applying for your loan.

You also have to plan on remaining living in the property for a number of years after taking out the loan, however moving home in the future is possible to do.

The property must also be your main residence, meaning that you don’t have a holiday home that you spend more time in throughout the year.

What are the pitfalls of a lifetime mortgage?

There are a number of pros when it comes to equity release. However, there are also a number of potential cons that are important to be aware of when applying for equity release in Wandsworth.

The biggest pitfall when it comes to equity release in Wandsworth is that you will be charged interest on your loan, which will quickly compound. This means that a lot of people are not able to leave their loved ones any inheritance when they pass away [2].

On top of this, if you do want to repay your equity release loan back early, you might be charged an Early Repayment Charge (ERC) which means that you will be charged a penalty for doing so.

Some of these charges are fixed and others are variable. There are a few exceptions to Early Repayment Charges, including if you downsize your property or if you have a significant life event happen which means that you need to repay your loan early [2].

You can learn about the cost of equity release here. It may also be worth reading our guide to the alternatives to equity release.

If you are in debt, and want to arrange equity release to pay for that debt, then it might be more advisable to first seek out the help of a debt counselling professional.

Below, we list organisations offering this type of help in your local area:

1. Citizens Advice Wandsworth Battersea Library

Address: Battersea Library, 265 Lavender Hill, London SW11 1JB

Phone: 0300 330 1169

Website: https://cawandsworth.org/

2. Wandsworth: South West London Law Centres

Address: 76 Falcon Rd, London SW11 2LR

Phone: 020 8767 2777

Website: https://swllc.org/

Other organisations that may help include StepChange Debt Charity, Society of Later Life Advisers and Wandsworth London Borough Council.

Please call our 24-Hour Helpline: 0330 058 1579

Considering equity release in Wandsworth?

If you are considering equity release in Wandsworth, then you should seek professional help and advice. You can do so by getting in touch with our team at Equity Release Warehouse.

Our team are experts in all things equity release in Wandsworth and will talk you through the equity release process from start to finish. You can even use our own equity release calculator to see how much you can realistically release from your home.

If you are interested in equity release in Wandsworth, you can start the process by getting in touch with Equity Release Warehouse and can easily do so in a number of different ways. For example, you can call us on 0330 058 1579 or by filling out our contact form.

References

[1] https://www.ownyourhome.gov.uk/scheme/help-to-buy-2021-2023/

[2] https://www.equityreleasewarehouse.com/help-centre/disadvantages-equity-release/