Equity Release in Godalming

Equity Release In Godalming | March 2024

Equity Release is a financial service offered to local homeowners over 55 in Godalming. While you’re still residing there, you can release equity from your home, giving you a second source of income or a lump sum for expenses in your later years. 

Equity release products can fund long-term care, pay off an existing mortgage, or supplement retirement income.

Table of Contents

Understanding Equity Release

Equity release is a method by which homeowners, especially those who are older, can access the value of their property and convert it into a lump sum of cash. You can accomplish this in several ways, the most popular being a lifetime mortgage or a home reversion plan

You can access tax-free funds in your home with both equity release products. The most common form of equity release, a lifetime mortgage, entails borrowing money using your house as collateral. 

A no-negative equity guarantee is a feature found in most lifetime mortgages. Thanks to this guarantee, you won’t ever owe more than your property is worth. On the other hand, a home reversion plan entails selling all or a portion of your house to a reversion business. 

You receive a tax-free lump sum or recurring payments for the right to remain in the home until your passing or admission to long-term care.

Types of Equity Release Schemes

Godalming offers lifetime mortgages and home reversion plans as its primary equity release options. Both types let homeowners access their homes’ equity, but they operate differently.

A lifetime mortgage entails borrowing money against your house while still being the legal owner. You can receive recurring payments or a lump sum loan with this product. 

When the property is sold, usually after someone passes away or enters a nursing home, the loan and rolled-up interest are paid back. 

On the other hand, a home reversion plan entails selling all or a portion of your home to a reversion provider in exchange for a tax-free lump sum or ongoing payments. When you pass away, the home reversion company sells the house to make money, but you can stay there rent-free for one more year.

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

If you take out a product from Age Partnership, we will receive a fee for introducing you to them. This helps support the site and for us to produce more content.

The Process of Equity Release in Godalming

There are several steps in the equity release procedure in Godalming. First and foremost, you should get professional advice on equity release from a financial adviser licenced by the Financial Conduct Authority. 

You can better understand the financial ramifications, risks, and advantages of releasing equity with the help of this advice. Second, you should use an equity release calculator to determine how much equity you can remove from your home. 

This step is essential because it tells you how much your property is worth and how much you could borrow. Next, pick a provider of equity release that offers the kind of equity release plan that best suits your requirements. 

To make sure the product is secure and comes with guarantees like the absence of negative equity, it is advisable to look for a provider that is a member of the Equity Release Council.

Finally, before you sign an equity release agreement, you should get independent legal advice. By taking this step, you can be sure that you know all the terms of the agreement’s legal obligations and rights.

Equity Release in Godalming

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.

Legal Aspects of Equity Release

A significant financial commitment with several legal repercussions is releasing equity from your house. Therefore, obtaining independent legal counsel is imperative before signing an equity release agreement.

You formally agree to a set of terms when you sign an equity release agreement. With a lifetime mortgage, for instance, you agree to pay back the loan amount plus interest when you pass away or enter long-term care. 

In contrast, a home reversion plan requires you to sell all or a portion of your house in exchange for a one-time or ongoing payment.

The right to remain in your home until death or placement in care is a significant legal aspect of equity release. All members of the Equity Release Council must abide by its standards, which safeguard this right.

The no negative equity guarantee is an additional crucial legal aspect. Even if the housing market crashes, this guarantee ensures that you will never owe more than the value of your home.

Financial Implications of Equity Release

A home equity release in Godalming may have several financial repercussions. First off, it might influence your tax situation. Your release money may make you ineligible for means-tested benefits despite being tax-free.

Second, equity release may affect your capacity to pay for future requirements. You might not have enough money, for instance, to pay for long-term care or to leave a legacy to your loved ones if you release all the equity in your home.

The price of equity release is the third thing you should think about. This may include the lifetime mortgage interest rate, advisory fees, and possibly early repayment penalties if you repay the loan sooner than anticipated.

Last but not least, releasing equity may impact your will and inheritance. This could lower the value of your estate and the amount you can leave to your loved ones because the money you release is typically repaid from the sale of your home after you pass away.

Risks and Benefits of Equity Release

Equity release has advantages and disadvantages. On the one hand, it offers homeowners a tax-free lump sum or regular income, allowing them to access their property’s value without leaving.

One of the advantages of equity release in Godalming is that it can be used to pay off an existing mortgage, supplement retirement income, or pay for long-term care. 

You can be sure that you’ll never owe more on your mortgage than the value of your home, thanks to a no negative equity guarantee.

However, releasing equity comes with risks as well. Your tax situation and eligibility for benefits based on need may be impacted. The cost of equity release can also be high, considering interest rates, advisory fees, and possible early repayment penalties.

Equity release also risks lowering your estate’s value and the inheritance you leave to your loved ones. So, seeking professional equity release advice is imperative before making a choice.

Finding Reliable Equity Release Providers

Finding a dependable provider is the key to unlocking equity in your Godalming home. Searching for providers who are Equity Release Council members is an excellent place to start. 

This organisation provides a no-negative equity guarantee as part of its commitment to upholding a strict code of conduct for its members.

When selecting a provider, consider the interest rates, advice fees, and potential early repayment penalties. Before committing to an equity release agreement, it’s critical to comprehend these costs.

The reputation of the provider should be taken into account as well. You can determine this by reading customer reviews or speaking with a financial advisor. They can assist you in comparing various service providers and offer unbiased financial advice.

Finally, ensure the provider offers the equity release programme that best meets your needs. Depending on your situation and financial objectives, you may decide between a lifetime mortgage and a home reversion plan.

Impact on Inheritance and Taxation

Releasing equity from your home may significantly impact your inheritance and tax situation. 

The value of your estate and the amount of inheritance you can leave to your loved ones may be lowered because the money you release is typically repaid from the sale of your home after you pass away.

Although the money you release is tax-free, it may impact your ability to receive means-tested benefits. Additionally, it might raise your income, placing you in a higher tax bracket. Therefore, before deciding to release equity, it is imperative to seek professional advice. 

A financial advisor can advise on whether equity release is the best course of action for you and assist you in understanding the potential effects on your inheritance and tax position.

Stepchange Financial Solutions for Equity Release

Step change financial solutions are a ray of hope for those looking to release equity. To successfully navigate the frequently complex equity release landscape, it is essential to seek the impartial financial advice of an independent financial adviser. 

With their assistance, you can select the equity release product that best meets your financial requirements. In addition, Stepchange Financial Solutions provides debt advice, a vital tool for people thinking about equity release. 

It can be beneficial to comprehend your current debt situation and how equity release might affect it. Your choices can be influenced by thoroughly examining your mortgage payments, credit card debts, and other financial commitments.

Finally, Stepchange can help you make monthly repayments on an equity release loan if you select a product that permits it. This choice might lower your equity release plan’s price, ultimately improving your long-term financial management.

Property Value and Equity Release

When considering equity release, your property’s value is an important consideration. For instance, a home in West Sussex or the South East might be worth more on the open market than in another part of the United Kingdom. 

The more money you can release, the more valuable your home is. A professional valuation is typically required to ascertain the market value, but an equity release calculator can offer a preliminary estimate. 

A licenced real estate agent or an impartial expert assesses your property’s current value based on several variables, including its size, condition, location, and the cost of nearby comparable properties.

Keep in mind that as the housing market and the state of the economy change, so can the market value of your home. 

Therefore, you can ensure you are well informed about the potential equity you may have access to by having regular property valuations throughout your equity release plan.

Mortgage Payments and Equity Release Options

Equity release can give homeowners with existing mortgages a way to better manage their monthly payments. You could use the cash lump sum or ongoing payments from an equity release product like a lifetime mortgage to pay off your current mortgage.

It’s important to understand that this would increase your overall debt because you must pay back the equity release loan and any accumulated interest. 

When it comes to understanding potential early repayment fees and the overall cost of equity release, the guidance of a financial adviser is invaluable.

The fact that most lifetime mortgages do not require monthly payments and that the principal and interest are paid off when the property is sold should also be taken into account. 

As a result, more money might become available each month, potentially reducing the financial burden on retirees.

Selecting an Equity Release Specialist

The process of obtaining equity release includes selecting an equity release specialist. You can receive specialised advice and be guided through the complexities of equity release from a specialist registered with the Financial Services Register.

You can receive expert guidance on the products offered from an equity release specialist, who can also assist you in comprehending the advantages and risks. 

The legal ramifications of equity release, including the terms and conditions of the agreement, can also be explained by them. Additionally, working with an equity release specialist guarantees that you have access to the best equity release choices available. 

They can assist you in locating a plan with favourable terms, a competitive interest rate, and the necessary protections, like a guarantee against negative equity.

About Godalming

In the South East of England, in Surrey, is the charming town of Godalming. Many people are proud to call this location home because of its fascinating history and stunning surroundings. The main postcode areas for the city are GU7 and GU8, and it has good phone service.

Godalming’s distinction as the first town in the world with a public electricity supply is among its most fascinating facts. This historical occurrence, which occurred in 1881, established Godalming as a leader in adopting new technologies. 

The town now has a mixture of traditional and modern buildings, reflecting its historical origins and development into the twenty-first century. Godalming is located along the River Wey, and locals and visitors can enjoy peaceful river walks. 

It has a small-town feel, with a population of about 22,000 people. The community is renowned for its top-notch educational facilities, which include Godalming College, a prestigious sixth-form college.

Godalming is also well known for its regular farmer’s markets, where regional producers and craftspeople sell their wares. The town also holds several yearly events that draw visitors throughout Surrey and beyond, such as the Godalming Music Festival, the town show and the funfair.

Finally, Godalming is a haven for those who love the outdoors. The Surrey Hills, an Area of Outstanding Natural Beauty with breathtaking views and a wealth of walking trails, encircle it.

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) Farncombe

2) Milford

3) Witley

4) Busbridge

5) Hurtmore

6) Hydestile

7) Eashing

8) Peper Harow

9) Compton

10) Artington

11) Charterhouse

12) Shackleford

13) Elstead

14) Thursley

15) Bowlhead Green

16) Brook

17) Sandhills

18) Wormley

19) Hambledon

20) Chiddingfold

21) Hascombe

22) Cranleigh

23) Bramley

24) Wonersh

25) Shalford

26) Guildford

27) Farnham

28) Aldershot

29) Woking

30) Haslemere

31) Hindhead

32) Camberley

33) Dorking

34) Leatherhead

35) Epsom

36) Horsham

37) Petersfield

38) Weybridge

39) Walton-on-Thames

40) Staines

41) Richmond

42) Twickenham

43) Wembley

44) Harrow

45) Uxbridge

46) Hayes

47) Southall

48) Ealing

49) Acton

50) Hammersmith.

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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