Stonehaven is an equity release company that provides a range of interest only lifetime mortgage schemes. A lifetime mortgage is a form of equity release that allows people who are over the age of 55 to take out a mortgage that is secured against their property and will last for their rest of their lives. Stonehaven Interest Select Plans are not for everyone, but they are something to consider when you are in need of funds during your retirement.
This is what it is known as a 'lifetime mortgage'. A lifetime mortgage is different than a conventional mortgage in that a conventional mortgage will only run for a set term and needs to be repaid at or before retirement. Conventional mortgages are 30 years in length; however, you can refinance or go with a shorter repayment term. The difference is how you repay both mortgages. In comparison the lifetime mortgage will run for life and be eventually repaid upon the sale of the property.
Conventional mortgages require repayment on a monthly basis where you pay interest and a part of the principle balance until the mortgage is paid off. Lifetime mortgages require no payment until the end of your life or you move to long-term care. You typically have to sell your home within 12 months of moving or your family repays it by sale with up to 12 months for the sale to go through. Your family could also pay off the mortgage and keep the home, but payment is required immediately rather than a grace period of 12 months for a sale to happen.
The lifetime mortgage schemes offered by Stonehaven differ from the lifetime mortgages offered by other equity release provders in that Stonehaven offers an interest only lifetime mortgage. This means that the borrower can repay the interest during the duration of the mortgage term. Such schemes belong to Stonehaven and they have a range of four Stonehaven Interest Select Plans. They all differ in qualification and corresponding interest rate.
Even though they are retired, Stonehaven equity release applicants should still consider some form of insurance. The two forms of cover they should be looking at are: protection of the mortgage should either partner die and protection of the bricks and mortar of their property.
In most cases, partners who are still living together apply for the Stonehaven Interest Select Plans. If one of them dies, the joint income will drop, yet the monthly interest payments will remain the same, thus the interest charged still has to be met. The surviving partner would need to carry on meeting the monthly interest payments. This is one of the main reasons why equity release applicants are required to have some form of insurance.
With life insurance that can cover outstanding mortgages on property, the partner remaining can pay off the loan or at least keep paying the interest without suffering. The other option is to sell the home, pay the mortgage, and move to a new location. For some this is reasonable, but for others they want to remain in the home they have lived in with their partner even if that partner is gone.
You will need to decide what makes the most sense for your situation. Stonehaven Interest Select Plans provide a solution to retirees who are struggling to make ends meet. Instead of having to sell their property, they can use it to obtain a lifetime mortgage from Stonehaven which means that they will be allowed to continue living in their property. This means that they are still responsible for maintaining it and making sure that it is insured because the property will eventually have to be sold to repay Stonehaven equity release. The property must be insured in accordance with the valuation report and a condition of the Stonehaven mortgage in case of subsidence, flood or malicious damages against the property.
Insurance is just one consideration you will want to take into account when you look at Stonehaven Interest Select Plans. You also need to consider the amount of pension you will receive upon retirement. You do not want to get into a plan that may require you to work longer than your initial planned retirement.
Your family should also be consulted about Stonehaven Interest Select Plans to make certain they agree with the decision. They are going to be responsible for your debts upon death or when you move to a retirement facility. While they are not going to be burdened by the lifetime mortgage, they may lose their family home to it. Click here for more informations regarding Stonehaven's plans.
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National Equity Release Pension Conference, Bath Street, Bakewell, Derbyshire, DE45 1BX.
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