Equity Release

How to Get the Best Equity Release Advice

You just retired from your job at one of the most renowned women’s magazine company in the UK. After a few weeks into retirement, you miss your post, and now you’re thinking of starting an online magazine of your own. That was your dream once, but after starting a family and all the problems that life throws at you, you gave up. Now you have all the time, a sizeable pension pot and 25 years worth of knowledge about the journalism world.

After working on some issues, you realize amassing an audience will take time regardless of your status as a writer. Now you need more money. After talking to some of your friends and a few printing world gurus, you get to learn about equity release products. Now you need to know more to see if this will be your financial knight in shining armour. Well, with the proper equity release advice, like at Sovereignboss, you can learn all about equity release1 loans, get your cash and make hundreds of euros gifting the world with knowledge on female empowerment, lifestyle choices, food, travel and among other issues.

Understanding the Workings of Equity Release

Equity release is a mortgage that allows you to unlock the value of your estate and turn it into a cash lump sum. You can do this through several policies which enable you to access the equity (cash) tied up in your residence, if you’re 55+, own a home worth more than €70,000 and one within the remits of the UK. 

As a rule, you can take the money you unlock in one lump sum, in several smaller amounts (drawdowns2) on which you’ll pay interest, or as a combination of both. The scheme also offers you two loan options, the lifetime mortgage loan and the home reversion plan. The lifetime mortgage allows you to borrow some of your home’s value at a fixed or capped interest rate, and you don’t make any monthly repayments. You only repay the loan when you die or move into long-term care.

Unlike the lifetime mortgage plan, the home reversion plan involves you selling a part or all of your property. Therefore, the plan provider offers you a tax-free lump sum for a portion of your estate at below market value. The scheme allows you to reside in your residence (rent-free) until you die. When the lender puts up the estate for sale, the proceeds are split based on the percentage they own and what you own, which mostly goes to your heirs.

With the number of unscrupulous plan providers rising, you must get the best advice, and according to the Equity Release Council3, before taking out any equity release plan, you need to consult a certified financial advisor. The independent financial advisor will help you navigate through the whole equity release market and assist you in weighing up the ideal options for your standings.  They’ll also offer you with the necessary information you require and help you figure out whether equity release is your best option.

If you have heirs, the advisor will help you get an equity release plan that features the no negative equity guarantee4 that protects your family from paying more than the value of the estate. It also allows you to transfer your scheme to another home without having to incur any penalties.

Therefore, you don’t have to worry about financing your online magazine. With the best equity release advice and incredible plan, you can get the money to fund your project, go on vacation and even help your family with their mortgage issues. You can’t go wrong with it!

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