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Your questions about equity release
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Q: Do I qualify for equity release?
You will usually qualify for an equity release scheme if:
- You and your partner are aged between 55-95
- You own your home with little or no outstanding mortgage
- Your home is worth £50,000 or more
Q: How much cash would be available to me?
This depends on how old you are, how much your house is worth or how much you are willing to sell. The amount available through an equity release plan varies from provider to provider so it's essential to get independent equity release advice to get an idea of the amount of cash available to you.
Q: Can I move home in the future?
Any equity release plan we recommend gives you the right to stay in your home for life. However, if you wish to move this will be subject to the equity release plan provider's property criteria.
Q: What happens if the value of my house changes?
If the value of your house should fall you are protected by a 'no negative equity guarantee' which ensures that you would never owe more than the value of your home. If house prices rise you may benefit unless you had released 100% of the value of your property with a home reversion plan.
Q: Will my children or grandchildren end up with debts?
Q: What happens if I want to repay the equity release loan?
Equity release plans are not designed to be repaid until the death of the last surviving partner or their entry into long term care. Early repayment charges may apply on lifetime mortgages if you repay the loan before this time. Home reversion plans can't usually be reversed because you sell a portion of your home to the reversion provider in return for a tax free cash lump sum and lifetime lease.
Q: What happens if my partner dies?
Any equity release plan recommended by Key Retirement Solutions gives you both the right to stay in your home for as long as you wish.
Q: Can I release equity from a retirement property or second home?
It is possible to release equity from a retirement home. You can even arrange an equity release plan on a retirement property in order to help to buy it.
Equity release plans can also be taken out on a second residence in the UK.
Q: I've completed an equity release plan and would like to release more cash. Can I get a top up?
Possibly. It depends on your current equity release plan and the amount you have already released. Contact us to arrange a free consulation with an equity release adviser, to find out whether a top up would be available to you.
Q: How long will it take to release the cash?
It depends on the individual equity release plan, but it usually takes between 8-12 weeks from application to completion.
Q: How will the value of my home be assessed?
Your property will be valued by an independent chartered surveyor to ascertain the true value of your property. The equity release plan provider will normally arrange someone to perform the valuation on your behalf.
Q: Would my state benefits be affected?
Releasing cash from your home could affect your entitlement to state benefits and may affect your tax position. Your Key equity release adviser can find out what any affect would be, to help find the best solution for you.
