In his latest Q&A, Mark Gregory helps a reader who wants to understand the maximum amount of equity they could release from their home
The Question
I own a bungalow on the south coast of England, and I believe it would be valued at approximately £500,000. I’m 84 and a widow.
Based on these factors, how much equity could I release as a maximum amount? How much should I put aside for fees, charges, and interest? Thanks so much for your advice.
Mark’s Answer
Thank you for your enquiry and I am happy to provide you with an indicative amount of how much capital that may be available to you. However, please note that at this early stage of your enquiry our expert whole of market, independent financial advice is available without obligation, and you would only pay an advice fee once your application completes and you are entirely happy.
I note this because there are many options available to you regarding raising capital and the amount you borrow can impact on the fixed interest rate, and features including inheritance protection, flexible payments, and your plans for future capital should always be considered before you proceed.
I created a bespoke customer research tool – smartER which is available on the Equity Release Supermarket website and allows you to complete your own research, in your own time and find out what capital, lenders, interest rates and products are available.
This research tool will also ask you about your health as lenders may provide you with lower interest rates, or enhanced lump sum even if health conditions are managed with prescription medication through to more serious illnesses.
As noted, our advisers can offer you a free consultation without obligation and they will provide you with detailed figures and information to help you with your plans. They only charge a fee when your application completes, and their fee could be paid by you, or from the proceeds of your application.
You will need to take independent legal advice during your application, and we can help you find an independent legal specialist if you do not currently have access to qualified legal advice.
The total cost for the financial and legal advice should be £2,500 including VAT, assuming there is no complex legal work with your estate or home. I can confirm that based on a customer who is 84 and a property worth £500,000 without any health enhancements, they may be able to access 58.40% of the value of their home which is £292,000.
However, as noted, this could be enhanced, and you may not need all of this capital initially, so taking independent financial advice without obligation would be beneficial for you, so you can ask any questions you may have, and the adviser will help you secure the best plan, features and benefits for your bespoke requirements.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
