equity release in Ashford

Equity Release In Ashford | April 2024

Equity release is a growingly popular financial strategy for homeowners in Ashford who are 55 and older. It provides a way to release equity held in your home without relocating. 

There are two equity release products: a lifetime mortgage and a home reversion plan. Several variables, such as the value of your home, your tax situation, and whether you prefer a lump sum or regular payments, may influence the equity release product that is ultimately chosen. 

Table of Contents

Understanding Equity Release

The term “equity release” refers to strategies senior citizens use to access the value of their homes and receive tax-free cash. It’s an extensive choice that needs professional equity release guidance. 

The equity release council, a body ensuring equity release providers adhere to high standards, steps in at this point. In addition to providing the equity release safe for all parties, their role is to protect homeowners’ interests. 

Like a lifetime mortgage, an equity release product enables you to borrow money against the value of your home while keeping your right to occupy it. As the loan and rolled-up interest are repaid when the property is sold, such a product typically does not require monthly payments. 

This typically happens when a homeowner passes away or enters long-term care. The home reversion plan is another equity release product. A reversion company buys all or a portion of your home in exchange for a one-time or ongoing payment. 

The house is yours to keep until you pass away, but you are still liable for its upkeep and insurance. 

Types of Equity Release Schemes

Homeowners in Ashford have two equity release options: lifetime mortgages and home reversion plans. A loan secured by your home is called a lifetime mortgage. 

Most lifetime mortgages include a no negative equity guarantee, ensuring you’ll never owe more on your loan than the house is worth. When you pass away or enter long-term care, your estate will be responsible for repaying the loan and any interest accrued. 

While some lifetime mortgages just cover the interest, others let you make monthly payments to keep the balance under control. The latter choice can quickly increase debt because interest accrues throughout the loan. 

On the other hand, a home reversion plan entails selling all or a portion of your house. You could receive a one-time or ongoing rent payment and keep the house until you pass away. 

You would no longer be the sole owner of your home, though, and the plan might get pricey if home prices significantly increase. 

You can also watch this video on Youtube here.

Try Age Partnership’s equity release calculator and estimate how much money you could release from your property.

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Eligibility for Equity Release in Ashford

To qualify for equity release in Ashford, some requirements must be satisfied. First of all, you have to be 55 years or older. The minimum age may be higher for some plans, though. Your property must also be worth a certain amount, typically at least £70,000. 

The equity release must be completed before you have paid off your current mortgage and any secured loans. The money from the equity release can be used for this. Finally, your property needs to be over a specific size and in reasonable condition. 

Equity Release In Ashford

Some of the Best Equity Release Interest Rates as of 18 April 2024

The table below shows you some of the best equity release rates for lifetime mortgages from some of the leading equity release providers in the UK. 

Provider NameProduct NameInterest RateType of productOffers
JustJust For You – J1 Green5.35%FixedFree Valuation
No application fee
JustJust For You – J2 Green5.40%FixedFree Valuation
No application fee
Scottish WidowsFR15.50%FixedCashback
Free Valuation
No application fee
JustJust For You – J25.50%FixedFree Valuation
No application fee
Standard LifeHorizon 200 Drawdown5.50%FixedFree Valuation
Standard LifeHorizon 200 Drawdown Fee Free5.55%FixedFree Valuation
No application fee
Scottish WidowsFR25.57%FixedCashback
Free Valuation
No application fee
Standard LifeHorizon 220 Drawdown Fee Free5.59%FixedFree Valuation
No application fee
Standard LifeHorizon 240 Drawdown5.59%FixedFree Valuation
More 2 LifeCapital Choice Ultra Lite Drawdown 15.60%FixedFree Valuation
No application fee

The equity release rates have been sourced by UK Care Guide from the Equity Release Supermarket website. These rates may have changed since this table was created and should be taken as indicative only. There may be other providers not listed on this table that could offer better deals.  In addition, the providers and products noted may not be right for your particular circumstances.  Therefore, they should only be taken as a guide, and we cannot guarantee their current accuracy. Please also note that we do not provide advice on or endorse any particular product listed here. The rate you are offered will depend on your individual circumstances and subject to lender approval. Therefore, we strongly recommend that you speak to an equity release adviser, who will be able to provide you with information on the latest rates that apply to you.

Speak To An Equity Release Specialist Today

Call Boon Brokers on 0333 567 1607 to discuss your equity release requirements and see what deals are available to you.

Benefits and Risks of Equity Release

Your finances in later life may benefit significantly from releasing equity from your home. It can offer a one-time, tax-free payment or ongoing income. It may indicate a carefree or anxious retirement for many. 

Equity release does, however, have dangers. A lifetime mortgage’s interest charges can add up quickly and raise the total amount owed. If you want to finish your plan early, there might be early repayment fees. Your tax situation and eligibility for state benefits may also be impacted. 

Therefore, obtaining unbiased financial advice from a licenced equity release adviser is essential before making a choice. They can assist you in weighing your options, clarifying the tax ramifications, and ensuring equity release is your best choice. 

Equity Release Process in Ashford

An appointment with an equity release specialist marks the start of the equity release procedure in Ashford. This can be a representative from a licenced firm or an independent financial advisor. 

They will discuss your requirements and situation while supplying details on the various equity release options. Since equity release lowers the value of your estate, you’ll need to consider the impact on your estate and any inheritance you may want to leave. 

You should also discuss your options, such as downsizing to a smaller home or using your savings. Your adviser will provide a recommendation once you’ve determined the kind of equity release product that best suits your requirements. 

They will give you time to consider the plan while highlighting its advantages, risks, and features. 

Legal and Financial Considerations

An essential financial choice with long-term effects is equity release. Consequently, it is crucial to obtain both impartial legal and financial advice. 

Your financial advisor can assist you in comprehending the economic impact, and a lawyer can help you understand the legal ramifications of the agreement. 

A few examples of financial factors are how much equity you can release, how it will affect your tax situation, and whether it will impact your means-tested benefits. You should also consider the costs of equity release, including interest rates, advisory fees, and legal expenses. 

Choosing a Reputable Equity Release Provider

Selecting a reputable equity release provider is essential when thinking about equity release. A lender member of the Equity Release Council provides protections, such as a guarantee against negative equity, to ensure you’ll never owe more than the worth of your home. 

Choose a provider who offers a variety of plans so that you can select the one that best suits your needs. A good service provider will allow you to receive your funds in a lump sum, regularly, or in combination. 

Impact on Inheritance and Welfare Benefits

The value of your estate and any inheritance you may leave can be impacted by equity release. Your home’s equity will decrease, resulting in less wealth for your heirs. 

However, the inheritance protection guarantee offered by some plans enables you to ring-fence a portion of the value of your property for your heirs. Your eligibility for means-tested benefits may also be impacted by equity release. You must discuss this with your advisor so that you are aware of the implications. 

Equity release may be a way for you to access the value of your home that is locked up, giving you extra money for retirement. However, careful thought and advice are needed because it’s a significant financial commitment. 

Always fully comprehend the ramifications before moving forward with any equity release plan.

Navigating the Equity Release Market

Numerous financial products are available on the equity release market to meet various needs and situations. You can borrow a portion of the value of your property with a lifetime mortgage, the most popular type of equity release. 

When the house is sold, which typically happens when you pass away or enter long-term care, the loan and interest are paid back. Careful thought must go into selecting the best equity release product. 

Use an equity release calculator, a tool created to estimate the amount you could borrow, as part of your research. 

It’s also a good idea to get professional equity release advice from financial advisors or an equity release expert who can walk you through the procedure and the available options.

Because the Financial Ombudsman Service assists in resolving disputes between customers and financial service providers, is available, you need not worry about unresolved complaints. 

The organisation offering equity release must be a part of the Equity Release Council, which ensures service providers follow a strict code of conduct.

Legal Aspects and Your Rights

Understanding your legal rights is crucial before signing an equity release agreement. Your legal rights may be upheld by the Solicitors Regulation Authority, an impartial organisation that oversees solicitors and law offices in England and Wales.

The guarantee against negative equity is one crucial right. This means that with most lifetime mortgages, your debt will always be at most the value of your property. This is comforting, especially if the housing market declines.

You must first use your savings or the money you’re releasing to pay off any mortgages or secured loans on your property. You may have to pay penalties for paying off your current mortgage early.

Impact on Your Financial Position

Even though equity release might seem alluring, it’s essential to consider how it will affect your financial situation. For example, releasing home equity may impact tax liability or means-tested benefits eligibility. 

To fully comprehend these implications, seeking unbiased financial advice is crucial. The interest rate for the equity release product is one critical factor. The total cost of the loan may be fixed or variable, depending on this. 

It’s also important to remember that a lifetime mortgage’s interest is compounded, which could increase your debt. Also, take into account the effect of rolled-up interest. In this situation, interest is added to the loan even though you are not making monthly payments. 

This relieves you of the burden of making monthly payments but also means that your debt may grow significantly over time. 

Seeking Professional Advice

Getting professional advice on equity release is an essential step in the procedure. Financial advisors can give unbiased advice, walk you through your options for equity release, and explain the consequences.

They can also provide you with an accurate estimate of the equity release cost, including any charges that may be necessary. Legal counsel is also essential when thinking about equity release. 

Lawyers can help you understand the agreement’s legal ramifications and safeguard your interests. Additionally, they can aid in your comprehension of the risks, such as how giving up equity will affect your inheritance and means-tested benefits.

And finally, sharing your plans with your loved ones is always a good idea. A significant decision, equity release, may affect your family’s future inheritance. A candid conversation now can help avoid any unpleasant surprises later. 

About Ashford

Southeast England’s Kent County is home to the charming market town of Ashford. Ashford, a flourishing community with a vibrant culture and a history that blends the ancient and the modern, is renowned for its distinctive style. 

The town is conveniently located alongside the M20 motorway, offering quick access to other parts of the nation. Ashford’s primary postcode regions are TN23, TN24, and TN25; its area code is 01233. 

The town’s distinctive architecture, which ranges from charming cottages and Victorian buildings to modern constructions, reflects its evolution and growth over time. Ashford’s proximity to the railway is one of its most intriguing features. 

Since the nineteenth century, the town has served as a significant rail hub. High-speed trains run from the Ashford International Station to London and other European cities like Paris and Brussels.

Ashford’s shopping district is another fascinating aspect. The renowned architect Richard Rogers created this town’s sprawling shopping complex, the Designer Outlet. Locals and guests can enjoy various luxury brands at discounted prices in this location.

Ashford doesn’t fall short when it comes to the beauty of nature. The town is close to the Kent Downs, an Area of Outstanding Natural Beauty, and is surrounded by gorgeous countryside. Because of this, Ashford is a great place to base yourself if you like cycling and walking outside.

Local Areas Where Equity Release Can Be Provided

Here is a list of local areas and boroughs where equity release services can be provided.

1) Willesborough

2) Kennington

3) Kingsnorth

4) Great Chart

5) Singleton

6) Sevington

7) Stanhope

8) Beaver Green

9) Bybrook

10) Park Farm

11) Repton Park

12) Chilmington Green

13) Willesborough Lees

14) Godinton

Within 10 miles of Ashford, equity release services can also be provided in the following towns, villages, and boroughs:

1) Wye

2) Challock

3) Smeeth

4) Aldington

5) Brabourne Lees

6) Mersham

7) Bethersden

8) Smarden

9) Pluckley

10) Egerton

11) Hothfield

12) Hamstreet

13) Shadoxhurst

14) Woodchurch

15) Biddenden

16) Tenterden

17) New Romney

18) Hythe

19) Folkestone

20) Canterbury.

Try Age Partnership’s equity release calculator and estimate how much money you could release from your property

Financial Promotions Sign-off

Where applicable, the adverts for Boon Brokers on this page have been signed off as a Financial Promotion by Boon Brokers Limited, to ensure that they are in compliance with Section 21 of FSMA. Boon Brokers Limited is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.

The Age Partnership equity release calculator has been approved and provided by Age Partnership. Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432.

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Saq Hussain

Saq is a financial expert and is responsible for the day-to-day running of the UK Care Guide website. Before taking on the operation of this site, Saq was a Director and the UK Head of DC Pensions, Benefits and Wellbeing at PwC. Saq is also a part of the steering group at the Living Wage Foundation, which has developed the UK’s National Living Pension standard.

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