Equity Release in Southampton

Equity Release In Southampton | December 2023

For many homeowners in Southampton, equity release has emerged as a sound financial plan. It’s a fantastic way for people over 55 to access home equity without moving. 

Table of Contents

Understanding Equity Release

You must first comprehend equity to learn equity release. Equity is the amount that separates the market value of your home from any outstanding loans secured by it, like a mortgage. 

Equity release is a method of taking out a lump sum of cash, ongoing payments, or a combination of both from the equity in your home. You can access this equity through equity release products like lifetime mortgages and home reversion plans

A lifetime mortgage is a loan secured by your home and deferred until your death or admission to long-term care. 

On the other hand, a home reversion plan involves selling all or a portion of your house in exchange for a one-time payment or ongoing payments while maintaining the right to occupy it without paying rent. 

The Financial Conduct Authority (FCA) oversees equity release, and most plans include a guarantee against negative equity. This prevents you from entering negative equity because you’ll never owe more than the house is worth. 

It is crucial to consult an equity release adviser before deciding to release equity. 

They can help you understand the associated costs, such as advice fees, legal fees, and possibly early repayment fees, as well as expert equity release advice and guidance through the equity release process. 

Equity Release Options in Southampton

Homeowners in Southampton have two options for releasing equity: lifetime mortgages and home reversion plans. Lifetime mortgages account for the vast majority of equity release products used.

With a lifetime mortgage, you take out a loan against the value of your home, and when you sell it in the future, you have to pay back the loan amount plus any rolled-up interest. 

Most lifetime mortgages have fixed interest rates, so you will always know how much you owe. A drawdown facility may be available with some plans, enabling you to access tax-free money as needed. 

On the other hand, home reversion plans entail selling all or a portion of your property to a provider of such a plan in exchange for a tax-free lump sum or ongoing payments. These are less common than lifetime mortgages because they typically provide less value. 

Use an equity release calculator to determine how much you can release, regardless of the type of termination you select. Also, always consult a mortgage adviser or equity release specialist before choosing. 

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.

Eligibility for Equity Release

You must own your home, be at least 55 years old, own it outright, and have a UK-based property to qualify for equity release. As long as the property has a specific value, it can be residential or commercial. 

Age, the value of your property, and your state of health are just a few of the variables that affect how much you can release. The more money you can borrow, the older you are and the more valuable your property is. 

Releasing equity may impact your tax situation and eligibility for means-tested benefits; it’s essential to remember this.

Therefore, you must discuss this with a financial advisor or mortgage broker who can offer unbiased financial guidance and walk you through the potential implications. 

Equity Release in Southampton

Some of the best equity release interest rates as at December 2023

The table below shows you some of the best equity release rates, as at December 2023, for lifetime mortgages, from some of the leading equity release providers in the UK. 

These rates may have changed since this table was updated and should be taken as indicative only. There may also be other providers not listed on this table that could offer better deals.  In addition, the providers and products noted below may not be right for your particular circumstances. 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 are applicable to you.

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Product NameInterest RateType of productOffers
Just For You – J2.56.22%FixedFree ValuationNo application fee
Just For You – J16.30%FixedFree ValuationNo application fee
Premier Flexible Pearl6.43%FixedFree Valuation
Premier Optional Payment Pearl6.43%FixedFree Valuation
Horizon 240 Drawdown6.43%FixedFree Valuation
Classic Drawdown Super Lite 26.47%FixedFree Valuation
Horizon 260 Drawdown6.47%FixedFree Valuation
Classic Elite Drawdown Super Lite 26.47%FixedFree Valuation
Premier Flexible Pearl6.48%FixedFree Valuation
Premier Optional Payment Pearl6.48%FixedFree Valuation
Horizon 240 Drawdown Fee Free6.49%FixedFree ValuationNo application fee
Classic Drawdown Super Lite 16.52%FixedFree ValuationNo application fee
Premier Flexible Pearl6.52%FixedFree Valuation
Premier Optional Payment Pearl6.52%FixedFree Valuation
Classic Elite Drawdown Super Lite 16.52%FixedFree ValuationNo application fee
Flexible Pearl6.53%FixedFree Valuation
Optional Payment Pearl6.53%FixedFree Valuation
Enhanced Lifestyle Flexible Option6.53%FixedFree ValuationNo application fee
Horizon 260 Drawdown Fee Free6.55%FixedFree ValuationNo application fee

The equity release rates have been sourced from Equity Release Supermarket. These indicative rates and incentives may have changed since this article was last updated. 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. We recommend that you speak to an equity release advisor to see what the best options are for you.

If you take out a product with Age Partnership, we will receive a fee for introducing you to them. By contacting Age Partnership through us, the cost of any equity release product would be the same as if you had contacted them directly.  The fee we received is used to help keep our site operational and to produce new content.  

Potential Risks of Equity Release

Even though equity release is a significant financial commitment with several potential risks, it can be a valuable source of income in later life. For instance, even though most plans guarantee negative equity, your home may have little value left to leave as an inheritance. 

With high interest rates and potential penalties for early repayment, equity release can also be an expensive way to borrow money. A lifetime mortgage’s interest can compound quickly, significantly increasing the balance you owe. 

Your tax situation and state benefits eligibility may be impacted by releasing equity. So, before making a choice, it’s crucial to get independent legal counsel and consult with an equity release adviser. 

Role of Financial Advisers

In the process of releasing equity, financial advisors are crucial. They can help you understand the risks and advantages of releasing equity and offer professional advice. 

You can learn more about the various kinds of equity release products that are offered, their costs, and how they operate with the aid of an equity release adviser. Additionally, they can assist you in comparing different equity release providers to ensure you get the best deal. 

Selecting a financial adviser subject to Financial Conduct Authority (FCA) regulation and a member of the Equity Release Council is crucial. You will be given the best protection and advice due to this. 

Financial advisors can also help you comprehend the potential effects of releasing equity on your tax situation and any existing means-tested benefits. Additionally, they can help you with the legal facets of equity release and, if required, recommend a conveyancing attorney. 

Legal Aspects of Equity Release

Before committing to a plan, it is essential to understand the legal implications of equity release. Understanding your equity release agreement is crucial because it is legally binding. Equity release attorneys can help in this situation. 

They can help you navigate the legal system and make sure you comprehend all of the contract’s terms and conditions. It’s important to remember that equity-release products have a 14-day refund policy. 

This means you have a 14-day window after filing your legal documents to change your mind and terminate the agreement. 

Impact on Inheritance and Benefits

Your inheritance may be impacted by equity release. When you pass away or enter long-term care, the loan and any accrued interest are typically repaid by selling your property. 

As a result, your estate’s value and the amount of inheritance you can give your loved ones are diminished. 

Your eligibility for means-tested benefits may also be impacted by equity release. Your income or assets may rise due to equity release, putting you above the eligibility requirements for benefits like pension credits or council tax reductions. 

Alternatives to Equity Release

Before deciding to release equity from your house, it is wise to weigh your options. For instance, you might relocate to a less expensive area or downsize to a smaller home. With this, money could be made available without having to borrow it. 

Think about renting a room out or taking in a lodger. This might enable you to continue living on your property and generate a steady income. Another option is to request financial assistance from the family. 

However, this should be cautiously approached since it might result in family disputes. Finally, research government grants or benefits to determine if you qualify for financial aid. This might give you extra cash without requiring you to give up any home equity. 

Equity release is an extensive financial choice that must be carefully considered. Before committing to a plan, getting professional advice and comprehending the implications is crucial.

Selecting an Equity Release Provider

For the best plan, picking the right equity release provider is essential. You can release tax-free cash from your home with the help of a product offered by an equity release provider governed by the Financial Conduct Authority. 

Each service provider has a unique set of plans, each with its interest rates, early repayment penalties, and extra features. To find the provider that best suits your particular needs, it is imperative to compare several. 

You can navigate the equity release market with the help of a mortgage broker or financial advisor. They can help you find a suitable provider by offering unbiased financial advice and using their equity-release industry expertise. 

Equity Release and Inheritance Tax

Inheritance tax issues may arise from equity release. When an estate’s value exceeds a predetermined level, inheritance tax is assessed. Therefore, releasing equity may lower the amount of inheritance tax if doing so decreases the value of your estate. 

However, you must obtain independent legal advice to fully understand how equity release might affect your tax situation. 

A lawyer with expertise in equity release, such as a solicitor or chartered legal executive, can offer complete legal counsel and walk you through potential tax repercussions. 

Remember that equity release may impact the size of your estate and the inheritance you leave to loved ones. Thus, it is crucial to consult your family about your plans and involve them in the selection process. 

Equity Release in Hedge End

The same guidelines and rules apply to equity release in Hedge End, a town located in the Southampton region. Homeowners in Hedge End who are 55 or older may access their equity.

Seeking professional equity release advice is essential when making any financial decision. Speak to an equity release specialist, a mortgage adviser, or a mortgage broker so they can walk you through the process and explain any potential repercussions or risks. 

Remember that equity release involves a sizable financial commitment and should not be taken lightly. Always consult a professional before deciding and weigh all your options. 

Role of Solicitors Regulation Authority

The Solicitors Regulation Authority (SRA) is crucial in the equity release industry. In England and Wales, they oversee solicitors and law firms, which includes those offering legal counsel on equity release. 

Getting legal counsel from a solicitor subject to SRA regulation is essential before considering equity release. They can help you navigate the legal ramifications of equity release and guarantee that your rights and interests are safeguarded. 

An equity release lawyer can walk you through the entire process, explain the terms of the equity release agreement, and offer guidance on early repayment penalties. They ensure your decision is well-informed and you are fully aware of the ramifications. 

The Role of the Financial Ombudsman Service 

The Financial Ombudsman Service (FOS), an impartial body, settle consumer and financial business disputes. You can contact them if you have a complaint about an equity release product or provider.

If you believe that your equity release provider needs to treat you fairly or there is a disagreement regarding your agreement, the FOS can assist. If they agree that the provider has erred, they can be told to make things right and offer a free, objective service. 

Remember, before moving forward with your equity release plan, it is essential to understand its terms and conditions. Before making a choice, always consult an expert and weigh your options.

About Southampton

Southampton, part of Hampshire County, is a thriving city on England’s south coast. It is a hub of activity with a rich tapestry of history, culture, and entertainment and is well known for its busy port. 

It’s simple for locals and visitors because most of the city’s postcode areas fall within the range of SO14 to SO19. Callers wishing to reach the town must use area code 023.

The city closest to the New Forest, Southampton, has various scenic features that give its citizens the best urban and rural life. 

The town also boasts the most extended remaining section of mediaeval walls in England, giving its contemporary image of a bustling metropolis a touch of the past. 

Southampton is also referred to as the cruise capital of Europe because it welcomes several opulent liners every year. The fact that the tragic Titanic departed from the city’s port in 1912 adds to its maritime history.

Two universities, the University of Southampton and Solent University, which draw students from all over the world, are located in the city and serve as educational hubs. 

The city is a thriving place to live and work because of its extensive history, cutting-edge amenities, and attractions.

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) Bassett

2) Bevois Valley

3) Bitterne

4) Bitterne Park

5) Coxford

6) Freemantle

7) Harefield

8) Millbrook 

9) Portswood

10) Redbridge

11) Shirley

12) Sholing

13) Swaythling

14) Woolston

15) Romsey

16) Eastleigh

17) Hedge End

18) Totton

19) Hythe

20) Marchwood

21) Botley

22) Locks Heath

23) Bursledon

24) Hamble-le-Rice

25) Netley

26) Bishop’s Waltham

27) Fair Oak

28) Winchester

29) Chandler’s Ford

30) North Baddesley

31) Nursling

32) Chilworth.

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

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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.

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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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