It is important that you approach equity release cautiously and methodically. Follow our Equity Release top tips and you should not go wrong.
By reading this you have already taken the first step. You know what equity release entails so it's time to start looking at the products on the market. For your protection you should only consider lenders that are members of SHIP.
Talk to a qualified financial adviser, who will look at your whole financial situation and recommend the most suitable option for you.
Ask about the options and costs, early repayment charges, taxation implications and whether your welfare benefits will be affected.Equity release is not the only possible means of raising finance, and it doesn't suit everyone. Make sure you have researched all of the other possibilities available to you before committing.
Many people who end up opting for equity release take up to two years to mull over the decision. So don't feel that you have to rush into it. A good adviser should put you at your ease, exercise patience and not put any pressure on you.
Using the equity in your home affects the amount you will be able to leave as an inheritance, so talk through all the issues before you take the next step.
When you apply, you will need to provide birth and marriage certificates; evidence of who you are and details of your home buildings insurance.
Usually, your lender will arrange for an independent valuer to assess what your home is worth - the valuation figure will not necessarily correspond with an estate agent's estimate, which may be higher. Once your home is valued, your lender can establish the maximum loan available to you.
As with any mortgage application, solicitors are there to protect the interests of the borrower and the lender. All SHIP members insist that you consult an independent solicitor to ensure that you fully understand the terms and conditions of the product that you choose.
If you do not already have a legal adviser in mind, The National Solicitor's Network can help you find one. It ensures that each firm affiliated with the network adheres to a specified standard of service and will provide you with the names of at least two firms in your area.
It usually takes about 10 weeks for you to get your money once your application has been received. The money will be paid to you by the equity release company via your legal adviser.
The only responsibilities you then have, are to maintain your home buildings insurance, keep your house in good order and let the lender know if your circumstances change.
There are lots of ways of using the cash released from your home to make your retirement more comfortable, and you can use the money you receive for any purpose you like, from a new car to home improvements, or the holiday of a lifetime.
If you are feeling a little less frivolous, your financial adviser can tell you how lifetime mortgages can also be used as part of your general financial planning.
