Equity Release in Farnborough

Equity Release In Farnborough | March 2024

In Farnborough, equity release is a common financial tactic used by elderly British homeowners. With this technique, homeowners over 55 can borrow money against their homes’ value without making regular payments.

Table of Contents

Understanding Equity Release

If you are over 55, equity release refers to various financial products that enable you to release the equity (cash) locked up in your home. Your age, the value of your home, and the equity release product you select all affect how much you can withdraw. 

The cost of equity release may be substantial. It entails taking out a long-term loan secured by your home and paid back when you pass away or enter long-term care. Comprehending the costs and the amount of equity you can release is crucial. 

It’s essential to seek professional equity release advice. You can better understand equity release products like lifetime mortgages and home reversion plans with the aid of an equity release adviser. 

They can also explain the effects of taking equity out of your house, such as how it will affect your tax situation and whether you qualify for means-tested benefits. Accessing the tax-free money locked up in your home through equity release may be an option. 

However, it would be best to consider how this would affect your state benefits, and you should get independent legal counsel before moving forward. An equity release calculator is valuable for calculating how much you can release.

Types of Equity Release Schemes

Home reversion and lifetime mortgages are the two main categories of equity release options. 

The most popular kind of equity release is lifetime mortgages. A lifetime mortgage allows you to take out a loan against the value of your house. 

When your home is sold, which typically happens when you pass away or enter long-term care, the loan and rolled-up interest are paid back. Most lifetime mortgages have a negative equity guarantee, which ensures that you will never owe more than the value of your home. 

While some lifetime mortgage products let the interest roll up, others allow you to make monthly repayments to control the interest. 

To receive a lump sum or ongoing payments, you must sell all or a portion of your home to a provider of home reversion services. Rent-free tenancy in the property may continue until your death, but you must agree to keep it up and insure it.

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 Farnborough

You must own a home in the UK and be at least 55 years old to qualify for equity release in Farnborough. Your primary residence must be on the property, which must also be at least a certain amount in value. The equity release provider will determine the precise amount.

Your eligibility may also be impacted by the type of property you own. Certain property types, such as apartments in high-rise buildings or properties with a limited lease, may not be eligible for equity release plans from some providers. 

Your eligibility and the amount you can borrow may also depend on your health and way of life. Some providers offer enhanced lifetime mortgages for people with particular lifestyles or health conditions. 

It’s crucial to take your financial situation into account. Your eligibility may be impacted if you are in an individual voluntary arrangement or have an outstanding mortgage. A financial advisor can explain your options to you.

Equity Release in Farnborough

Best Equity Release Interest Rates as of 24 February 2024

The table below shows you some of the best equity release rates, as of 24 February 2024, for lifetime mortgages from some of the leading equity release providers in the UK. 

Provider NameProduct NameInterest RateType of productOffers
Standard LifeHorizon 200 Drawdown5.26%FixedFree Valuation
Standard LifeHorizon 200 Drawdown Fee Free5.31%FixedFree Valuation
No application fee
More2LifeCapital Choice Ultra Lite Drawdown 15.46%FixedFree Valuation
No application fee
LV=Drawdown Lifestyle DD15.58%FixedFree Valuation
No application fee
Scottish WidowsFR15.60%FixedCashback
Free Valuation
No application fee
Standard LifeHorizon 280 Drawdown5.60%FixedFree Valuation
Legal & GeneralInterest Roll-Up 15.61%FixedFree Valuation
Legal & GeneralOptional Payment 15.61%FixedFree Valuation
LV=Drawdown Lifestyle DD25.63%FixedFree Valuation
No application fee
Legal & GeneralInterest Roll-Up 1 (no fee)5.65%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

Equity release has several advantages. Retirement can give you a tax-free lump sum or a steady income that can be used to pay for home improvements, support loved ones, or raise your standard of living. 

Some plans allow you to live in your home for the rest of your life without monthly payments.

The risks must also be taken into account, though. Equity release can be costly, lower your estate’s value, affect your tax situation, and make you ineligible for means-tested benefits. 

If you repay the equity release mortgage, there might be fees associated with early repayment. Additionally, you might be unable to transfer the equity release plan if you want to move to a new property. 

That is why consulting an equity release adviser is crucial. They can aid in your decision-making by assisting you in understanding the costs, risks, and benefits. 

Impact on Welfare Benefits and Tax

Your welfare benefits and taxes may be impacted by equity release. Reaching equity from your home might affect your eligibility for means-tested benefits like Council Tax Support and Pension Credit. It’s imperative to get advice before acting.

Although the money you release is tax-free, it may raise your income and change how you are treated for income taxes. The gain or growth from investing the funds may be taxable. 

Tax on inheritances might also be taken into account. Equity release lowers the value of your estate, potentially lowering any inheritance tax obligations. To fully grasp the implications, obtaining legal and financial counsel is imperative.

Getting Professional Advice in Farnborough

When thinking about equity release, it is imperative to seek professional advice. An equity release adviser can give you unbiased financial guidance and assist you in determining whether equity release is a good option. 

The various forms of equity release, the associated costs, and their implications for your situation can all be explained by them. The Equity Release Council is a trade association representing service providers, certified advisers, solicitors and other industry experts. 

Council members must abide by a strict code of conduct, which includes guaranteeing no negative equity and ensuring that clients receive impartial legal counsel.

Many financial advisors and solicitors in Farnborough offer equity release advice. They can assist you in comprehending your options, the associated costs, and any potential effects on your tax situation and entitlements.

Application Process for Equity Release

There are several steps in the equity release application process. You will first meet with a financial advisor for advice. They will discuss your requirements and situation before making the best equity-release product recommendation.

After that, you must have your property valued. Your home’s market value will be determined by a surveyor sent by the equity release provider to visit you. How much equity you can release will depend on the value of your property.

When you decide to move forward, you must fill out an application. After that, the supplier will present a formal offer. You cannot reverse your decision once you have accepted the offer. 

Finally, the funds will be released, and the equity release agreement will be concluded. Typically, the entire process takes 8 to 12 weeks.

Alternatives to Equity Release

Equity release might only sometimes be the best option. Downsizing to a smaller home, taking in a lodger, using savings and investments, and other options are additional ways to access money in retirement. 

If you currently have a mortgage, consider refinancing to release equity. Consider an interest-only mortgage for retirement instead, where you only pay back the principal when you pass away or enter long-term care.

Consider state benefits and local authority grants as well, as they can assist you in meeting your financial obligations. A charity like StepChange that offers debt counselling can provide free support and advice.

Before making a choice, seeking financial advice and weighing all your options is imperative. An advisor can assist you in weighing the benefits and drawbacks of each option and selecting the best course of action for your particular circumstances.

Choosing the Right Equity Release Provider

You must choose the right equity release provider to get the best deal. The equity release products are not all offered by all providers, and interest rates can differ significantly. 

You can compare various providers with the aid of an equity release adviser and select the one that best meets your requirements. The price of equity release is another essential factor to take into account. 

This covers the interest rate, consulting costs, legal costs, and perhaps early repayment fees. Before choosing, it is critical to comprehend all the costs. A mortgage equity release calculator can assist you in understanding the potential long-term costs.

It is a good idea to pick a provider who is a part of the Equity Release Council. This provides additional customer protection and guarantees that the provider follows a strict code of conduct, such as a no-negative equity guarantee.

Legal Aspects and Regulation of Equity Release

The Financial Conduct Authority (FCA) governs the equity release industry. All equity release service providers and advisors must adhere to standards and offer frank, impartial advice. 

You can contact the Financial Ombudsman Service if you have a complaint about an equity release product or provider. Before signing an equity release agreement, you should also get independent legal advice. 

By consulting a lawyer, you can be sure you know all the legal ramifications, including your rights and obligations. Many lawyers in Farnborough with expertise in equity release can offer this service. 

Understanding the contract type and the terms and conditions is crucial because equity release involves a contract between you and the provider. This includes knowing what will happen if you want to terminate the agreement early or move to a new property.

Considering Your Future Needs and Circumstances

Equity release is a long-term commitment that may not be the best option if your circumstances change, but it can help you have more money in retirement. For instance, you might not be able to transfer your equity release plan if you need to move to a new property.

You might be charged if you have a sizable loan balance that needs to be repaid early. Furthermore, equity release will lower the value of your estate if you intend to leave an inheritance. 

The effect on your tax situation and eligibility for state benefits should also be considered.

It’s wise to think about your needs and circumstances in the future before making a choice. 

You should discuss this with a financial advisor who offers unbiased financial guidance based on your unique circumstances. 

Exploring Alternatives to Equity Release in Farnborough

It’s good to weigh your options before releasing equity from your house. Downsize to a smaller home, take on a mortgage, or remortgage. You can investigate these options with the aid of a mortgage broker.

An organisation that offers debt advice and support can help if you’re having financial difficulties. For instance, StepChange Financial Solutions provides various services, such as individual voluntary agreements and debt management guidance.

Another choice is joint ownership. With this plan, you can own a portion of your house while renting the rest. It is accessible to first-time buyers and those who previously owned a home but are currently unable to afford to do so. 

Keep in mind that equity release is only one of your many options. You can choose the course of action that is best for your situation by considering all of your options and getting advice.

About Farnborough

Hampshire, England’s Farnborough, is a fascinating town that can be found there. It is a vibrant area of the southeast of the UK and is well-known for its rich history and contemporary charm. The town uses the 01252 area code for phone calls and has the GU14 postcode.

Farnborough’s dedication to aviation is one of its distinctive qualities. The Farnborough International Airshow, a week-long event that draws thousands of visitors worldwide, is held in the town. 

It’s an opportunity for business leaders and enthusiasts to celebrate the most recent advancements in aerospace technology. The Royal Aircraft Establishment (RAE), which has significantly contributed to the history of aviation in the UK, is located in Farnborough. 

A British research organisation called the RAE later changed its name to the Defence Research Agency to serve as the primary research branch of the UK Ministry of Defence. Along with a rich aviation heritage, Farnborough offers a unique fusion of urban living and natural areas. 

The town’s parks and open spaces, including the well-known King George V Playing Fields, are accessible to residents and guests. The city is desirable due to its vibrant community, first-rate transport options, and proximity to London. 

Farnborough is a vibrant town that keeps expanding and developing, with a mix of residential, commercial, and industrial areas.

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) North Camp

2) West Heath

3) Southwood

4) Empress

5) Cove

6) St John’s

7) Cherrywood

8) Fernhill

9) Mayfield

10) Tower Hill

And here are towns, villages, and boroughs within 10 miles of Farnborough:

1) Aldershot

2) Fleet

3) Frimley

4) Camberley

5) Ash

6) Yateley

7) Crowthorne

8) Wokingham

9) Alton

10) Woking

11) Farnham

12) Guildford

13) Reading

14) Bracknell

15) Basingstoke

16) Godalming

17) Haslemere

18) Lightwater

19) Bagshot

20) Knaphill

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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Meet the author

Jane Parkinson

Jane Parkinson

Jane is one of our primary content writers and specialises in elder care. She has a degree in English language and literature from Manchester University and has been writing and reviewing products for a number of years.

Meet The Team

Most advisors charge for their service.  But you can get fee-free equity release advice from Boon Brokers. 

Call : 0333 567 1812

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If you take out a product from Boon Brokers, we will receive a fee for introducing you to them.

Unlike most equity release advisors, Boon Brokers do not charge any fees! Have a free consultation to see how they can help.

You can speak to Boon Brokers on the number below and discuss your options.

0333 567 1812

Use the equity release calculator and see how much money you could receive.

You can book a callback from an equity release specialist, who can call you when it's conveniant.

All equity release advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757. 

 

If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation.  By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.  

The fee we receive is used to help keep this site operational and to produce new content.  

 

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

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