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How To Release Equity From Your Home
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Do you want to know how much equity can be released from your home? An equity calculator computes your age and the value of the property to calculate how much can be released from it.
Many people use equity release as a way of getting money out of their biggest assets. A recent study shows that over $2 billion was released in 2018. This shows how much money many seniors have in their homes that they do not even know about.
If you have decided to release equity over your home, then you should ensure you pick the right companies that are under the Federal Conducts Authority (FCA) and Equity Release Council (ERC). These companies are under strict obligation to give you as much freedom as possible on your home.
Do you want to know how much equity can be released from your home? An equity calculator computes your age and the value of the property to calculate how much can be released from it.
Many people use equity release as a way of getting money out of their biggest assets. A recent study shows that over $2 billion was released in 2018. This shows how much money many seniors have in their homes that they do not even know about.
If you have decided to release equity over your home, then you should ensure you pick the right companies that are under the Federal Conducts Authority (FCA) and Equity Release Council (ERC). These companies are under strict obligation to give you as much freedom as possible on your home.
Tips to help pick the right equity release company
• Compare many alternatives before making a choice
• Talk to your independent financial adviser and a solicitor to fully understand the implications of the equity release loan.
• Pick a company registered with FCA and ERC
Advantages of equity release
• Tax payments are not effected on money gotten from equity release.
• You can never owe more than the value of the property
• You can choose not to make monthly payments
• You retain full ownership of your property
• You can choose to move to another property
Disadvantages of equity release
• You might lose your entitlements to state benefits
• The interest rates on the equity release loan are considerably higher compared to mortgage loans
• If you make repayments before they are due, you might have to pay charges.
FAQs about equity release
Q: Can I get an equity release loan on a retirement home?
A: Due to their limited marketability, lenders are usually cautious of giving equity release on retirement homes
Q: What is the maximum amount that I can get with an equity release?
A: It depends on the value of the property, your age, and the maximum amount the lender can give out.
Q: Can my children get the remaining of the equity payment?
A: If the person who got the loan is deceased, then the house can be sold, and the rest of the equity payment is paid to the children.
Q: What can I do with the money gotten from an equity release?
A: Absolutely anything! You can use it on a luxury trip or get a house renovation with it.
Equity releases are a common way to get cash ‘hidden’ in your home, but remember always to borrow only what you need!
