In the first part of this two-part post, you learned about equity release and what it is. We also discussed the different types of equity release. In the second half of the article, your reliable conveyancer in Manchester will answer more questions you might have about the topic:
How Long Does Equity Release Take?
We recommend that you do your research before beginning the equity release process. The application will take at least four weeks and up to six weeks for a lifetime mortgage and six to eight weeks for a home reversion scheme. The time it takes for the entire process to be completed varies depending on the surveyor and solicitor you are working with.
Once the application has been approved, you need to hire a chartered surveyor to evaluate your property’s worth and its condition. Your equity release solicitor will then start with the legal process of your scheme and liaise with the mortgage lender until the equity release’s completion.
Is Releasing Equity the Right Decision?
There is no right or wrong answer to this question. It depends on your individual needs and preferences. Some homeowners choose to release equity for other reasons, like paying off debt, buying a new car, or reducing the mortgage (more details on this later). These homeowners sometimes want to sell their homes after they die and leave the equity to their heirs.
What Are the Benefits of Equity Release?
Easier to obtain: Equity release is getting easier to obtain, and more people are eligible because lenders are becoming more lenient. Many lenders now work with homeowners who have a poor credit rating, and others will even accept borrowers who are in debt. As long as they pay their mortgage and stay within their credit limit, equity release providers are willing to help.
What Are Drawbacks of Equity Release?
A standard equity release will affect your entitlement to state benefits such as Pension Credit, Winter Fuel Payment, and Personal Independence Payment.
You may be required to pay a higher rate of interest than a lender would typically charge on a secured loan.
If you decide to sell your home in the near future, you could be forced to lose some of your equity.
You will have to pay for a legal charge (for the solicitor), a valuation fee, and an arrangement fee.
How Do You Know Which Equity Release Solution is Right for You?
Your equity release provider can answer this question for you. They will be able to provide you with an assessment of your financial situation and adjust the equity release plan based on how much you are willing and able to pay.
You can also speak to your trusted financial advisor to determine if an equity release is suitable for you.
Conclusion
If you have equity in your home that you want access to, you have a few options. The first and most common course of action is to sell your home. However, this may not be the best solution for everyone. Equity release is another way to access the money that is sitting in your home. However, you must be cautious because this solution does involve risks. Contact your conveyancer in Manchester for more advice to learn more about equity release.
Conveyancing Experts can provide you with quality conveyancing services that you can trust. Contact us to learn more about equity release and to know more about our services!