People often think that if you use equity release, you could lose your home. That’s why it’s important to talk to your adviser about all the specifics of equity release. They will tell you how it works, how much it costs, and what it means. Your adviser will also tell you that there is no Negative Equity Guarantee, which is very important.
Maintain Home Ownership with a Lifetime Mortgage
If you have a lifetime mortgage, you are the legal owner of your home as long as you live there, and any upsurge in its value is yours. You can live in your home for the rest of your life or until you have to move into permanent residential care, as long as it is your main home and you follow the contract.
What makes a Home Reversion Plan unique
As part of a home reversion plan, if you sell part of your home, that portion will belong to the provider. You can still live there as long as you follow their rules and requirements. It’s crucial to understand that if the price of your home goes down, you might end up owing your lender a bigger share of what it’s worth. This is not a common way to get money from your home’s equity. Most homeowners who start taking out equity release do so with a Lifetime Mortgage.
No Negative Equity Guarantee
Your product should come with a guarantee that you won’t lose money on it. Talk to your advisor about this. The guarantee means that when your property is sold and the agents’ and lawyers’ fees are paid, even if there isn’t enough money left to pay back the loan to your supplier, neither you nor your estate will have to pay any more.
When you apply for a lifetime mortgage, a few products let you set aside a portion of your home’s value as an inheritance for your family. We think that you should talk to a specialist. You can still move if you have a lifetime mortgage because you can move your plan to a new home as long as it meets the requirements set by your provider.
Even though you sell a portion of your home to a lender, you will still have to pay all of the usual bills, like council tax, gas, and electricity. You might also have to pay for building insurance and be in charge of repairs and upkeep.
For more information please contact Equity Release Brokers on 01277 620083.