Equity Release in Worthing

Equity Release In Worthing | April 2024

A financial product called equity release in Worthing enables property owners to access the value locked up in their homes and receive a tax-free lump sum or recurring payments. 

The South East’s equity release procedure, governed by the Financial Conduct Authority, entails a lifetime mortgage or a home reversion plan. 

Homeowners in Worthing can get professional advice on equity release from a financial advisor or an equity release expert like John Whyte Equity Release or Right Mortgage Ltd.

Table of Contents

Understanding Equity Release

Homeowners can access tax-free cash from the value of their homes through equity release. Both a lump sum and regular payments are options for receiving the money. Lifetime mortgages and home reversion plans are the two available equity release options. 

With a lifetime mortgage, you can release equity while keeping ownership of your home as collateral for the loan. The loan is repaid along with any accrued interest when the homeowner dies or enters long-term care, and the claim is either paid off monthly or rolled up. 

Most lifetime mortgages provide a no negative equity guarantee, which states that the total amount owed will never exceed the property’s market value. 

On the other hand, home reversion entails selling some or all of your property to a provider of degeneration while retaining the right to live without paying rent for the rest of your life. 

The amount received is typically less than the total market value, but no interest charges or scheduled payments exist.

Eligibility for Equity Release in Worthing

Homeowners must be 55 or older, own a property in the UK, and have a specific market value determined by the equity release provider to be eligible for equity release in Worthing. 

Your current mortgage, the value of your house, and any means-tested benefits you receive impact the equity release product you ultimately select.

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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Types of Equity Release Schemes

Lifetime mortgages and home reversion plans are the two types of equity release strategies. With a lifetime mortgage, you can take out a loan against the value of your house while keeping ownership. 

When you pass away or enter long-term care, the loan balance and any rolled-up interest are paid off by selling your property. With a home reversion plan, you can sell all or a portion of your property to the provider in exchange for a one-time or ongoing payment. 

You can stay home without paying rent until you leave or enter care. The equity release council ensures that every equity release plan includes a negative equity guarantee, giving you or your estate peace of mind that you won’t be left with debt when the house is sold.

Equity Release in Worthing

Some of the Best Equity Release Interest Rates as of 18 April 2024

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

Provider NameProduct NameInterest RateType of productOffers
JustJust For You – J1 Green5.35%FixedFree Valuation
No application fee
JustJust For You – J2 Green5.40%FixedFree Valuation
No application fee
Scottish WidowsFR15.50%FixedCashback
Free Valuation
No application fee
JustJust For You – J25.50%FixedFree Valuation
No application fee
Standard LifeHorizon 200 Drawdown5.50%FixedFree Valuation
Standard LifeHorizon 200 Drawdown Fee Free5.55%FixedFree Valuation
No application fee
Scottish WidowsFR25.57%FixedCashback
Free Valuation
No application fee
Standard LifeHorizon 220 Drawdown Fee Free5.59%FixedFree Valuation
No application fee
Standard LifeHorizon 240 Drawdown5.59%FixedFree Valuation
More 2 LifeCapital Choice Ultra Lite Drawdown 15.60%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.

The Process of Equity Release

The first step in the equity release process is seeking objective financial guidance from a licenced financial adviser. Homeowners can better understand the effects of equity release on their tax situation and state benefits by taking this first step. 

The equity release adviser will cover the available products, their costs, and any potential impact on the homeowner’s inheritance. The next step is for the homeowner to pick an equity release strategy that works for them. 

They can use an equity release calculator to calculate how much equity they could release. The equity release provider will conduct a property valuation to verify the property’s market value.

Once the homeowner has approved the equity release agreement, the legal process can start. 

Before signing the equity release agreement, the homeowner must also get legal counsel. This will guarantee that they fully comprehend the terms and conditions of the equity release plan. 

The equity release provider will release the funds after the contract has been signed, which may come as a tax-free lump sum or regular income. 

Pros and Cons of Equity Release

A tax-free lump sum or a consistent income are just two of the many advantages of equity release that can enhance a homeowner’s quality of life in retirement. Additionally, it enables homeowners to maintain their way of life and remain in their homes. 

It’s crucial to remember that equity release may affect your eligibility for means-tested benefits and decrease the value of your estate. 

Setting up an equity release plan has additional costs, such as advice fees, legal fees, and high early repayment fees if you decide to pay off the loan early. The interest rates for equity release products may seem higher to some people than those for a typical mortgage. 

Therefore, before making a choice, professional equity release advice is advised.

Impact on Inheritance and Benefits

Because the money you release and any interest that has accrued will be repaid from the sale of your home when you pass away or enter long-term care, equity release can impact the value of your estate and your inheritance. 

The amount you can leave as an inheritance might be lowered. Equity release may also impact your eligibility for benefits based on your income. If you receive an equity release lump sum, it might be considered capital and could affect your eligibility for benefits. 

So, before releasing equity, it’s crucial to talk about this with a financial advisor.

Seeking Professional Advice in Worthing

Seeking professional equity release advice from a licenced financial adviser in Worthing is essential before moving forward with equity release. This guidance should be unbiased and take into account your unique situation. 

For a complete understanding of the terms and conditions of the equity release plan, you should also get independent legal advice. 

Understanding all associated costs, such as advice fees, legal fees, and potential early repayment penalties, is crucial when selecting the best equity release product. 

Working with an advisor, you can understand these costs and how equity release affects your tax situation and state benefits.

Alternatives to Equity Release

It’s crucial to weigh your options before choosing equity release. These options include moving into a smaller, less expensive home, renting a room, or asking family members for assistance. 

Consider additional financial products, like a personal loan or a conventional mortgage. However, if you’re on a fixed income, the regular repayments required by these options may strain your finances. 

Utilising your investments or savings as a backup plan would depend on your unique situation and the counsel of your financial advisor.

Keep in mind that there are other ways to access the value of your home besides equity release. It’s critical to weigh all of your options before choosing one.

Releasing Equity with Negative Equity Guarantee

The negative equity guarantee is one of the critical components of an equity release product. This guarantees that neither you nor your estate will be asked to pay more than the value of your home when it is sold, even if its value is lower than the loan’s principal. 

This guarantee, which supports the Equity Release Council, is an essential component of equity release products and assures homeowners. 

The negative equity guarantee is something you should bring up with an equity release advisor if you’re thinking about doing so. 

They can shed more light on the operation and safeguards of this guarantee. Remember that equity release is a long-term commitment, so it’s crucial to comprehend all the terms.

Equity Release and Your Inheritance

Equity release can help you financially later in life, but it’s essential to consider how it might affect your inheritance. When you pass away or enter long-term care, the funds you release and any interest accumulated are repaid from the sale of your home. 

The amount left to your heirs may decrease as a result. It can be helpful to talk about your intentions with your family and seek guidance from a financial planner. 

Information about how this choice might impact your estate and any inheritance you intend to leave can be found in a chartered financial planner.

Equity Release Costs and Charges

It’s critical to comprehend all related costs before signing an equity release agreement. This includes advisory fees, legal expenses, and early repayment fees if you pay off the loan early. 

An arrangement fee for the equity release mortgage, typically included in the loan, can also be included in the cost of equity release. 

Some service providers additionally charge a valuation fee to determine your home’s worth. Before signing an equity release agreement, ensure you know all potential costs.

Equity Release Advice in East Sussex

Some regional experts can offer equity release advice to homeowners in East Sussex who are considering it. 

You can be guided through the process and make sure you comprehend all the implications with the help of an equity release broker or adviser, like John Whyte Equity Release or Right Mortgage Ltd.

These experts can give you a complete picture of the market, aid in evaluating the various equity release products, and direct you in choosing appropriate circumstances. 

Additionally, they can help you comprehend how it might affect your tax situation and any means-tested benefits.

Equity Release and State Benefits

A state benefit’s eligibility may be impacted by equity release. For instance, if the proceeds from the sale of your home push your savings over a predetermined threshold, it may affect means-tested benefits like pension credits or council tax reduction.

It’s crucial to get unbiased advice before making a choice. Your benefits and overall financial situation may be impacted by equity release, which financial advisors can help you understand.

Managing Your Equity Release Loan

Thinking through how you’ll handle the loan before taking out a home equity loan is crucial. If you decide on a lifetime mortgage, you can make monthly payments to lessen the effect of interest roll-up.

You might instead favour a plan that doesn’t call for regular payments. In this instance, the loan is repaid along with any accumulated interest when the house is sold. 

It’s important to remember that most lifetime mortgages provide a no negative equity guarantee, ensuring that your debt will never exceed the value of your home.

Considering Equity Release Alternatives

For some homeowners, equity release can be a good option, but other options must be considered. For instance, a lump sum could be released by downsizing to a smaller property without signing a loan agreement. 

Consider using your savings or other investments as an alternative to choosing equity release. A financial advisor can give you a comprehensive overview of all your options, guiding you towards the best choice for your situation.

About Worthing

Worthing is a charming town in West Sussex, South East of England. Worthing is a well-liked vacation spot for locals and visitors because of its lovely seafront and lush public parks. 

The town primarily falls under the BN11, BN12, and BN13 postcode areas and is serviced by the area code 01903 for telephones. Worthing has a lengthy history that dates back to the Stone Age and nearly 6,000 years of human habitation. 

Its development as a seaside resort in the 19th century significantly contributed to its allure today. Many interesting landmarks can now be found there, such as the Worthing Pier and the English Martyrs Catholic Church, which houses a ceiling replica of the Sistine Chapel. 

The community is renowned for its appreciation of the arts and culture, hosting events like the International Birdman Competition and the Worthing Open Houses art festival each year. 

Worthing has a thriving theatre community, with venues like the Connaught Theatre hosting a range of performances all year long. 

Worthing is a thriving community as well as a popular tourist destination. It has many excellent schools and a vibrant town centre with many stores, eateries, and cafes. Worthing is a desirable place to live due to its location on England’s sunny south coast and excellent transport options.

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) Broadwater

2) Durrington

3) Salvington

4) Goring-by-Sea

5) Ferring

6) Findon Valley

7) High Salvington

8) Offington

9) Tarring

10) West Tarring

11) North Worthing

12) East Worthing

13) West Worthing

14) Central Worthing

15) South Worthing

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

1) Lancing

2) Shoreham-by-Sea

3) Littlehampton

4) Arundel

5) Southwick

6) Portslade

7) Steyning

8) Rustington

9) Angmering

10) Hove

11) Brighton

12) Pulborough

13) Storrington

14) Henfield

15) Hassocks

16) Burgess Hill

17) Haywards Heath

18) Horsham

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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Saq Hussain

Saq is a financial expert and is responsible for the day-to-day running of the UK Care Guide website. Before taking on the operation of this site, Saq was a Director and the UK Head of DC Pensions, Benefits and Wellbeing at PwC. Saq is also a part of the steering group at the Living Wage Foundation, which has developed the UK’s National Living Pension standard.

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