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Mark Gregory, Founder and CEO at Equity Release Supermarket
www.equityreleasesupermarket.com
Tel: 0800 802 1051
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Question
Am I eligible for a lifetime mortgage?
I am 64-year-old female with couple of health issues. I would like to stay in my current residence where I have lived for 38+ years.
My son’s name is on the mortgage, and he wants to come off. The only option for me is a lifetime mortgage. I have an outstanding mortgage of £283,000 and my house is valued at approx £550,000
The current term finishes in November 2022
Are there any lenders that will consider getting me on the lifetime mortgage? My house is next to an audio shop. We have been neighbours for 38+ years.
However, the shop is being sold (on market) to be sold as a residential property. It used to be a house previously.
Answer
Thank you for your questions, and I can confirm that based on the information you have provided there may be a solution for you to repay your existing mortgage, liberate your son from the mortgage, and for you to remain living in your home for the rest of your life.
Based on your age and the value of your home, and your mortgage balance, you are unlikely to be eligible for a Lifetime mortgage – as the maximum release based on the information provided is around £180k. The reason being is that the mortgage of £283k needs to be repaid on or before completion of any lifetime mortgage. Only if you have any funds to cover the shortfall (£103k), would a lifetime mortgage become available.
However, my advice to you at this stage of your research is to discuss your options with an equity release specialist adviser.
The reason I have made this suggestion is that there may be several other options for you and without getting to know you and your finances it would be impossible to make the best recommendation for your personal circumstances. For example, you maybe eligible for various other later life capital raising options including – home reversion plans, and retirement interest only mortgages (RIOs).
Your personal circumstances including your existing savings, your income, and your health will all play a part in determining the best advice and solution for your circumstances. For example, using some of your savings and borrowing less can be important because it can benefit your estate in the long-term. Furthermore, your current health status is important to provide the right solution and in some cases, it can lead to an increment in how much capital you can access or reduce the fixed rate of interest charged by the lender.
Therefore, my advice would be to talk through your current situation and objectives with one of our friendly, professional equity release experts who will help, advise, and guide you to achieve the best solution based on your personal circumstances. There is no obligation and you do not have to pay any fees for a consultation or their advice at this stage. The only time you will pay an advice fee is when any recommendation they make completes, you are 100% satisfied, and you have secured your home for the future.
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Question
What’s the maximum I can ‘release’ from my home?
I own a three-bedroom property in Surrey, and it’s currently valued at £450,000. I own it all having paid off the mortgage in 2001. I am 75, a widow and I live here alone. I have some of my husband’s pension and live comfortably within my means.
Ideally, I would like to release some money for each of my nine grandchildren to set up funds for them to pay for university. If I give them £25k each that will involve using over half of my property’s funds.
Will this be allowed? And will calculations take into account future increases in the housing market?
Answer
Thank you for contacting Equity Release Supermarket, and what a lovely gesture it would be for you to help your grandchildren and transfer some of your wealth and see them benefit in your lifetime.
Based on your age, the value of your home, and your objectives, I can see that you would like to raise about 50% of your property wealth. Raising this amount of capital is certainly an option, and you are eligible for all equity release plans.
Assuming you took the most popular form of equity release called a lifetime mortgage, you retain 100% ownership of your property and therefore retain any increase (or decrease) in its future value.
However, before you raise capital and transfer your wealth it is very important to discuss your personal circumstances, and your own requirements for the future. Taking specialist, whole of market, independent advice has never been more important especially with the current financial situation.
Here at Equity Release Supermarket, we can offer you no-obligation, professional advice, and based on your circumstances, our advisers will help you to understand all of your options, and crucially discuss your current finances, your future aspirations and then they will make a recommendation.
Before you raise capital and generously gift it to your loved ones, it is important to consider your longer-term requirements including funding for long-term care, or your personal needs including raising capital to pay for home improvements, because once you have kindly gifted the capital away in would not be available for you.
In summary, yes you are likely to be able to raise the capital you need for your kind gesture; however, always discuss your options with a friendly professional adviser without obligation. So, feel free to contact Equity Release Supermarket, and one our experts will be the first person you will talk too, because we do not have a call centre.
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Question
What’s the process for taking out equity release?
Please can you explain what the process is for taking out equity release? My elderly father is looking at this option, but he is very frail, and I want to understand how stressful it may – or may not be for him before we proceed.
I would be grateful for an idea of how much paperwork is involved plus who he might have to liaise with and whether it would be acceptable for myself (his son) to be involved in this to help. Also, will we need a solicitor? Thank you.
Answer
I am sorry to read that your father is frail, and I can understand that you want to help, and guide him to make a very important financial decision to raise capital from the equity in his home.
Firstly, and most importantly, with his permission, you can become a welcome part in the advice process to ensure that he receives the best, expert advice. Our friendly expert advisers can visit your father in his home, discuss his plans with him over the telephone or via video conferencing, and we encourage you and your siblings to be present.
To provide your father with advice, our advisers will ask some questions to establish the best solution for his circumstances. They will then review the whole of the equity release market before making a formal recommendation. If your father, you, and your siblings are happy with the advice and you would like to continue, one of our expert advisers will complete all of the paperwork for you.
Once the application is submitted, the provider will send an independent surveyor to value your father’s home, and then the provider will make your father an offer. Your father will take independent legal advice, and we have a panel of solicitors who can assist him, or you can use your own solicitor.
Here at Equity Release Supermarket, we have dedicated, friendly case handlers who will support your father throughout the application process, to make things as easy as possible for him. We believe in providing a 5* customer experience from start to finish, and evidence of this on our Equity Release Supermarket Feefo review page and can also be found on our website.
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Question
Will I be allowed to take out equity release with my daughter on the deeds?
I am 82 and I live with my daughter. She came onto the mortgage with me 20 years ago to help me pay for it and is still on the deeds, even though there is no mortgage.
I wondered, therefore, if I would still be able to release the equity? My daughter is 48 so not eligible. Thanks for your advice.
Answer
Here at Equity Release Supermarket, we have been advising our customers for over 15 years, and you and your daughters’ current personal circumstances are not unusual, as many families like to cohabitate and care for each other.
However, as you are aware to be eligible for equity release, the basic requirement is that you must be aged 55, own your own home and live in the UK. As you are aged 82, you correctly recognised that you are eligible, however, at aged 48 your daughter is too young at this time.
As you and your daughters’ personal circumstances are not clear from the information you have provided, I would recommend that you have an informal discussion with one of our friendly expert advisers, who will ask you a series of questions and be able to discuss the options that may be available.
Protecting you and your daughter and providing the best advice would be of paramount importance to us, and our advisers are here to help you without any fee or obligation for their guidance and professional service. We can discuss your options in the comfort of your own home over the telephone or via video conference. We do not have a call centre so when you get in touch, our friendly advisers are the first person you will talk too.
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