Equity Release in Leicester

Equity Release In Leicester | March 2024

Equity release is becoming increasingly popular among Leicester homeowners as a retirement financial planning tool. As a result, they can access tax-free funds linked to the property’s market value without selling or moving. 

Leicester’s equity release market provides various products with unique characteristics, advantages, and costs.

Table of Contents

Understanding Equity Release

Thanks to a financial product called equity release, you can release equity from your home while residing there. 

Typically, homeowners 55 and older can use it. It can serve as a retirement income supplement, help pay for home improvements, or act as a safety net for later life. 

The money can be given to you all at once or in regular instalments. Age, home value, and the specific equity release product you select are just a few variables that will affect how much you can borrow. 

In Leicester, most equity release plans include a guarantee against negative equity. This guarantees that you will never owe more than the value of your home, regardless of what happens to the real estate market. 

Additionally, many products allow you to manage the outstanding loan in a way that will enable you to roll over interest or make monthly repayments.

Eligibility for Equity Release in Leicester

You must own a home in the area and be at least 55 years old to be eligible for equity release in Leicester. Your primary residence must be the property and may also need to satisfy other requirements established by the equity release provider. 

While obtaining the equity release plan, you must pay off your current mortgage and any secured loans. This might come from the first lump sum you get. 

Your financial advisor can help you understand how releasing equity might affect your tax situation and any means-tested benefits you may be eligible for, as well as provide professional equity release advice.

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.

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.

Types of Equity Release Schemes

Lifetime mortgages and home reversion plans are the two primary equity release programmes in Leicester. A lifetime mortgage is a loan secured by your house and enables you to withdraw tax-free money while still owning and residing in your home. 

On the other hand, home reversion plans entail selling the provider a portion of your property while keeping the right to live there for the rest of your life without paying rent. 

The best option for you will depend on your circumstances and financial objectives. Each type of equity release has advantages and disadvantages. Before making a choice, it’s critical to get unbiased financial advice.

Equity Release in Leicester

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.

Pros and Cons of Equity Release

Several advantages can be had from equity release. It can give you a one-time tax-free payment or ongoing payments without requiring you to vacate your home. Thanks to features like the no negative equity guarantee, it can also provide peace of mind.

Equity release does have some disadvantages, though. It can be a complicated product, so it’s essential to comprehend all associated costs, such as interest rates, advice fees, and possible early repayment penalties. 

Your tax situation and eligibility for means-tested benefits may impact both by releasing equity. Getting advice from a financial adviser specialising in this field is essential before choosing an equity release product. 

They can direct you towards the best product and assist you in understanding the implications of equity release.

Securing Your Future with Equity Release

It’s crucial to realise that equity release in Leicester is a significant financial commitment if you’re thinking about it. 

By releasing the value of your home, you can receive a one-time payment or recurring payments to supplement your income in retirement or pay for significant life events.

In particular, lifetime mortgages are becoming increasingly well-liked among those in their later years who use equity-release products. 

The majority of lifetime loans have flexible features. You can choose between a drawdown plan, where tax-free money is released as needed, and a lump sum plan, where money is received immediately.

Consider consulting a financial adviser for professional advice on equity release before deciding to release equity from your home. 

They can walk you through the process, explain the equity release agreement’s terms, and aid in your comprehension of how it might affect your tax situation and current state benefits.

Navigating the Equity Release Process

An equity release adviser consultation is the first step in the process. Your financial situation will be evaluated, the features and risks of various equity release products will be discussed, and the adviser will advise on whether equity release is the best course of action.

The next step is having your property valued. How much equity you can release will depend on the property’s market value. You can get a ballpark figure for this amount using an equity release calculator.

When you decide to move forward, your equity release adviser will assist you in locating an appropriate equity release plan from a reputable provider. The provider will then make a formal offer, which you can accept or reject.

Legal Considerations of Equity Release

The legal ramifications of equity release are one of its key components. For this reason, it’s crucial to seek independent legal counsel before signing an equity release agreement.

The solicitor will cover the equity release plan’s terms and conditions, including the interest rates, the negative equity guarantee, and any early repayment fees. 

They will also review your responsibilities for upkeep and maintaining your home as your primary residence and your rights and privileges under the agreement.

You should also think about how equity release will affect your estate. Releasing equity will lower the value of your estate and impact how much your beneficiaries will inherit. As a result, it is advised that you consult your family before making a decision.

Exploring Alternatives to Equity Release

Equity release may not always be the best option. You can access additional funds in retirement in other ways, depending on your specific situation. For instance, downsizing to a less expensive, smaller property might help you save some money. 

Alternatively, consider renting out a space in your house or lowering your expenses. If you currently have a mortgage, you can change it to an interest-only mortgage or extend the term. This might lower your monthly payments and allow you to save some money.

Getting debt advice from a qualified advisor before making any decisions is recommended. They can offer you unbiased guidance catered to your unique circumstances.

About Leicester

Leicester, an English city in the East Midlands, is a thriving centre of culture and history. One of the oldest cities in the UK, it is located in Leicestershire and has a more than 2,000-year-old history. 

With a rich tapestry of diverse cultures, traditions, and cuisines, Leicester is one of the UK’s most ethnically diverse cities. Its sizable Asian population contributes to the city’s distinctively multicultural atmosphere.

The city is renowned for its skill in sports as well. The famous rugby team Leicester Tigers and Premier League football club Leicester City call it home. 

With a primary postcode area of LE1 to LE19 and the area code 0116 for telephones, Leicester is conveniently located for residents and tourists.

Many of Leicester’s landmarks, such as the historic Roman Jewry Wall, the mediaeval Leicester Castle, and the National Space Centre, the largest planetarium in the UK, are evidence of the city’s rich history. 

In addition, the city is home to King Richard III’s final resting place, whose remains were found in a parking lot in 2012 and are now buried in Leicester Cathedral.

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) Aylestone

2) Beaumont Leys

3) Belgrave

4) Braunstone Park & Rowley Fields

5) Castle

6) Evington

7) Eyres Monsell

8) Fosse

9) Humberstone & Hamilton

10) Knighton

11) North Evington

12) Rushey Mead

13) Saffron

14) Spinney Hills

15) Stoneygate

16) Thurncourt

17) Troon

18) Westcotes

19) Western Park

20) Woodstock

21) Wycliffe

Here are some towns, villages, and boroughs within 10 miles of Leicester:

1) Anstey

2) Birstall

3) Blaby

4) Countesthorpe

5) Enderby

6) Glenfield

7) Groby

8) Huncote

9) Narborough

10) Oadby

11) Thurmaston

12) Wigston

13) Syston

14) Rothley

15) Queniborough

16) Quorn

17) Mountsorrel

18) Ratcliffe on the Wreake

19) Scraptoft

20) Thurcaston.

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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