Equity Release in Maidstone

Equity Release In Maidstone | March 2024

An economical option for older homeowners who want to access the value of their property is equity release in Maidstone. In exchange for a cash lump sum or ongoing payments to supplement your income in retirement, you can release equity from your home. 

Before making such a significant financial commitment, seeking professional equity release advice is imperative.

Table of Contents

Understanding Equity Release

Equity release is just a simple idea. It’s a financial product that enables you to borrow money while still residing in your home by using the value of your house as collateral. 

Lifetime mortgages and home reversions are Maidstone’s two main categories of equity release products. When you take out a lifetime mortgage, you borrow money against your house that can be repaid by selling it when you pass away or enter long-term care. 

Equity release can efficiently increase your retirement income or give you a lump sum for a significant investment or purchase. It’s important to realise that this involves locking up a sizeable portion of your home’s value in a lengthy financial arrangement. 

The amount you can release depends on your property’s market value and age. Use an equity release calculator to estimate how much equity you could remove. 

The Financial Conduct Authority regulates equity release, ensuring that all equity release providers follow strict guidelines for the protection of consumers. 

The No Negative Equity Guarantee is a crucial rule. This indicates that with most lifetime mortgages, your debt will never exceed the value of your home. 

Types of Equity Release Schemes

Home reversion plans and lifetime mortgages are the two primary methods of equity release. Most equity releases take the form of lifetime mortgages. It entails taking out a loan secured by your home and paid back when you pass away or enter long-term care. 

You can receive the loan monthly or as an initial lump sum. You can also choose to let the interest accrue. A home reversion provider will purchase all or a portion of your property from you in exchange for a tax-free lump sum or ongoing payments. 

You won’t be the only owner any longer, but you can stay there rent-free until you pass away. The amount you receive upfront depends on how much property you sell.

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.

Legal Regulations in Maidstone

The Financial Conduct Authority (FCA) oversees equity release in Maidstone and throughout the rest of the UK. Thanks to this regulatory framework, all mortgage lenders and equity release specialists must abide by strict regulations to protect consumers. 

For instance, there cannot be a negative equity guarantee on any equity release product. This guarantees that you will never owe more than the house is worth. 

The Equity Release Council, a self-regulatory trade organisation for the equity release sector, has also established guidelines and standards that its members must abide by. 

Providing impartial legal counsel to all clients before the execution of an equity release plan is one aspect of this. This guarantees that you choose wisely regarding this significant financial commitment.

Equity Release in Maidstone

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

Choosing an equity release mortgage has advantages and disadvantages, just like with any financial product. Accessing tax-free funds from the value of your property without moving is one of the main benefits. 

This could give you additional funds to enjoy retirement, pay off a due mortgage, or support your family. There are drawbacks to think about, though. Your tax situation and eligibility for means-tested benefits may be affected by releasing equity. 

The value of your estate and the amount you can leave as an inheritance may also be affected. Furthermore, if you decide not to make monthly payments, the interest rates on lifetime mortgages may be higher than those on standard mortgages and may accrue over time. 

How to Choose an Equity Release Plan

The best equity release option for you will depend on your unique situation and long-term financial objectives. A qualified equity release adviser should always be consulted for unbiased financial advice. 

They can assist you in comprehending the advantages and disadvantages of various equity release products, as well as how they may affect your tax situation and eligibility for government benefits.

Consider the interest rate, the project’s flexibility, and the reputation of the equity release provider when selecting an equity release plan. 

Additionally, you should determine if the program carries an early repayment penalty and what would happen if you wanted to move to a different property. Finally, think about your options. For instance, downsizing to a smaller property might be better if you manage it.

Impact on Inheritance and Benefits

Before choosing equity release, it’s essential to consider how it might affect inheritance and government benefits. The amount you can leave as an inheritance may be lowered because the funds you release are subtracted from the value of your property when it is sold. 

However, the inheritance protection guarantee provided by some plans enables you to ring-fence a portion of the value of your property for your beneficiaries.

Equity release may also impact your eligibility for state benefits subject to a means test. Your eligibility for Housing Benefits and Pension Credit may be affected if the amount of money you release and your other savings exceeds £10,000.

Financial Advice for Equity Release

It is strongly advised that you get professional advice before making an equity release decision. Your tax situation and any means-tested benefits you may be eligible for are just two potential effects on your financial situation that a financial advisor can help you understand. 

They can also advise you on the various equity release options and assist you in selecting the strategy that best suits your requirements.

Case Study: Equity Release in Maidstone

John and Mary, both retired, decided to research equity release in Maidstone to finance their later years. They wanted to continue living in their home because they owned it outright and had no mortgage.

They contacted an equity-release expert, who reviewed their situation and suggested a lifetime mortgage. 

They released a lump sum to upgrade their house and increase their pension. They were reassured that they wouldn’t leave a debt to their children thanks to the guarantee of no negative equity. 

To ensure that a portion of the value of their property would still be passed on to their family, they also took out an inheritance protection option. Thanks to the equity release, John and Mary could continue living in their beloved home while receiving the required funds. 

It’s crucial to remember that everyone has unique circumstances, and what works for one person may not work for another. Always consult a professional before making a choice.

Additional Considerations for Equity Release

It’s essential to consider many factors before starting an equity release journey. The cost of hiring a financial adviser or an equity release adviser, for example, can increase the overall cost of equity release. 

These costs are for their assistance in guiding you toward the best equity release decision by providing knowledgeable advice. 

It’s crucial to understand that if you currently owe a mortgage on your house, you must pay it off first using your own money or the proceeds from an equity release plan. 

This is so that the property will not be subject to any loans or mortgages unless it is another equity release product, as specified in the equity release agreement.

Furthermore, consider the potential effects on your benefits if you’re considering releasing equity to pay for long-term care. Any means-tested benefits you receive could be impacted by equity release because the money you release could be regarded as capital or income.

Exploring Different Equity Release Providers

The equity release market is home to many providers offering various equity release products with unique features. 

To find the best mortgage product from the best mortgage lender, it is advised that you consult with a financial adviser or an equity release adviser.

All the businesses, people, and other entities that the Financial Conduct Authority (FCA) regulates are listed in the Financial Services Register, which is accessible to the general public. 

Before dealing with a financial adviser or equity release provider, you can use it to verify their information.

Equity Release and Your Estate

Your estate may be significantly impacted if you release home equity. If you have a sizable loan balance when you pass away, the value of your estate will be reduced. This might result in a smaller inheritance for your intended beneficiaries. 

However, some equity release plans provide an inheritance protection guarantee that enables you to reserve a portion of the value of your home for your loved ones.

Seeking Legal Advice on Equity Release

Obtaining independent legal and financial advice is crucial before finalising an equity release plan. You can better comprehend the equity release agreement’s legal provisions, including each party’s rights and obligations, with the aid of a lawyer. 

In England and Wales, solicitors are governed by the Solicitors Regulation Authority, ensuring they adhere to strict standards. 

The Role of Financial Ombudsman Service

A free, impartial service for resolving disputes between customers and companies that offer financial assistance is the Financial Ombudsman Service (FOS). You can file a complaint with the FOS if your equity release provider cannot resolve it satisfactorily. 

It is always advised to address your concerns with your provider first so they can make things right. 

Moving House and Equity Release

Let’s say you released equity and are considering moving. In that case, it’s crucial to know that, provided the new property satisfies the lender’s requirements, most lifetime mortgages permit you to transfer your plan to a new property. 

You might be required to repay a portion of your equity release plan if the new property has a lower value, which could result in an early repayment fee. Before deciding to move, always review the terms and conditions of your equity release agreement.

About Maidstone

In the province of Kent in South East England, the historic town of Maidstone can be found. It is the county seat of Kent and is renowned for its beautiful surroundings and lengthy history. 

The primary postcode areas for Maidstone are ME14 and ME15, and the area code for phone calls is 01622. 

Leeds Castle, which has stood on the banks of the River Len for more than 900 years and is known as “the loveliest castle in the world,” is one of the town’s most notable landmarks. 

The Maidstone Museum, which houses a sizable collection of fine art and historical artefacts, is located in the heart of the town. Maidstone is renowned for having a vibrant entertainment scene. 

The Hazlitt Theatre, which has performances all year long ranging from comedy and drama to music and dance, is located there. The lovely Mote Park offers 450 acres of mature woodland and a 30-acre lake for those who prefer outdoor activities.

The town’s critical economic sectors are retail, construction, and the public sector. Additionally, Maidstone has first-rate transport options, with two train stations providing quick access to London and the M20 motorway.

Maidstone is a fantastic place to live and work because of its vibrant blend of culture, history, and modern lifestyle.

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) Allington

2) Bearsted

3) Boxley

4) Detling

5) Downswood

6) East Farleigh

7) East Sutton

8) Hollingbourne

9) Hucking

10) Leeds

11) Loose

12) Otham

13) Penenden Heath

14) Shepway

15) Sutton Valence

16) Thurnham

17) Tovil

18) West Farleigh

19) Yalding

Here are some towns and villages within 10 miles of Maidstone:

1) Aylesford

2) West Malling

3) Chatham

4) Rochester

5) Sittingbourne

6) Snodland

7) Tonbridge

8) Paddock Wood

9) Sevenoaks

10) Gravesend

11) Gillingham

12) Cranbrook

13) Royal Tunbridge Wells

14) Dartford

15) Orpington

16) Swanley

17) Bexley

18) Bexleyheath

19) Sidcup

20) Welling

21) Abbey Wood

22) Belvedere

23) Erith

24) Greenhithe

25) Swanscombe

26) Longfield

27) Hartley

28) New Ash Green

29) Edenbridge

30) Fawkham.

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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