Equity release can be a great method of releasing the cash secured in your home and using it to make personal purchases, start a business, buy a holiday home or supplement your pension. The equity release industry has expanded a great deal in the last few years with even more companies offering a vast range of products. For many people, the first consideration of equity release is determining what cash amount would be available to them. This can be easily accomplished with an equity release calculator (found at http://www.equityreleasecalculator.net/). These helpful online tools can provide a fast way to assess your options and discover the potential cash amount which could be obtained. However, there are a number of other benefits to using an equity release calculator, these include:
Assess Your Qualification
The more in depth versions of an equity release calculator allow people to determine their cash amount and assess their qualification for the various schemes. Each scheme has particular criterion which must be met to qualify. These will usually depend on home value, location and age of applicants. There are currently three main types of different equity release on the UK market.
• Home reversion plan: This type of scheme allows home owners the opportunity to sell all or part of their property to the reversion company. However, with this type of plan, the home owner has a guarantee that they can still reside in the property for the remainder of their lifetime or until they take up residence in a long term care facility.
• Lifetime plan: This offers a loan for the remainder of your life. Unlike conventional repayment mortgages which require a monthly payment, the lifetime plans allow home owners to receive a lump sum and the interest which is accrued on the loan is compounded on to the balance. This sum is only due for repayment upon the death of the applicant or when they go into long term care and the property is sold.
• Drawdown lifetime mortgages: This is also a loan for the remainder of your life, but it provides a greater degree of flexibility. You will be advised of your equity release limit, but instead of receiving it as one lump sum, you will have the option to draw down funds as and when you require them from your cash reserve. This can be helpful for those who are worried about their entitlement to certain state benefits.
Each of these plans will have specific requirements or restrictions and based on the information you supplied to the equity release calculator, you will only be shown details of schemes where you meet the criteria.
Additionally, a number of companies offer enhanced plans which are based on your health and lifestyle. People with medical conditions or illnesses may be offered enhanced rates based on their reduced estimated life expectancy. The information supplied to the calculator can highlight if you would meet the qualification criteria for an enhanced plan.
Information for Planning
While it is important to know the cash amount available through equity release, the calculator can also supply additional information which may assist your planning. Many calculators offer tailored examples of different rates and schemes, so you can compare and assess them to find your preferences. In many cases, home owners may not discuss their plans for equity release until they have the relevant information. The calculators can help to supply this information and allow you to go through your plans with your family. This can also help to speed up the application process as you can supply the information to your specialist broker to provide a basis for comparison and ensure that you obtain the best possible deal.
An equity release calculator can be a great way to obtain your cash amount for equity release. However, it is important to consider that you will also be required to seek professional advice. Specialist equity release counsellors will often offer a no obligation free consultation and can supply you with additional information. These qualified advisers can advise you on which are the best plans for your specific circumstances and help to ensure that you get the maximum amount of cash from out of your home. Independent counsellors may also have access to product ranges and schemes which are not generally advertised to the general public. These may represent a better deal for your requirements.
If you are considering equity release, an equity release calculator is a great place to start. They can provide you with the information and figures you will need to make an informed choice about whether you should proceed further.
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