Stonehaven Equity Release is a specialist website that advises on the various lifetime mortgage schemes they have available. There are predominantly two forms of equity release plans that Stonehaven has to offer, which are the roll-up and interest select plans. They are both two forms of lifetime mortgages. Roll-up equity release plans are where a capital lump sum is taken and no monthly payments are made. Consequently, the interest rolls up each year and compounds accordingly.
The Stonehaven Interest Select plan is effectively an interest only lifetime mortgage where the applicant makes a monthly mortgage payment that pays off the interest. There is also the facility where instead of paying off the whole interest charged, the borrower can elect to pay back just part of the interest starting from £25 per month. With this particular equity release scheme, the balance remains level throughout the term of the mortgage.
Stonehaven Equity Release has independent financial advisers who can discuss your options. For instance, if you want a relative to inherit the property, the adviser will tell you which lifetime mortgage is the best choice. Since they just lend to people age 55 and older, the minimum mortgage amount you can receive is just £10,000. The amount you can borrow is determined by how much your property is worth and the age of the youngest person on the deeds. Stonehaven currently has a minimum property value of £70,000.
When you receive the tax free cash upon completion it can be used for anything that you wish. Most retirees use the money to help them get by since they struggle each month with their bills and general expenditures.
Getting a roll-up lifetime mortgage may be an option if you do not want to have a monthly payment. The interest accumulates, but it does not have to be repaid. In fact, it is only repaid in full once you pass away or move into a long term care facility. At that point the property is usually sold with the beneficiaries having 12 months in which to complete the sale.
Right now, the two plans are currently available in England and Wales only. You can elect to receive the maximum value on your home; however, this is not always the best option and you should only withdraw the amount you are likely to spend over a fixed period. That way with an interest only lifetime mortgage, you can pay the interest back sooner. This may be an option for you when you are thinking about your children. If you want to pass the property down to your loved ones, an interest only lifetime mortgage is usually the best option.
However, always ask your equity release adviser about your options available as Stonehaven equity release is just one of the many pensioner mortgages on offer. There are other companies willing to offer equity release schemes too. You may wish to compare these various companies to see how Stonehaven compares to these other products.
After all it is due diligence on your part to see what the best product is for your situation. Each retiree will have a different situation from their age, home value to the number of beneficiaries left behind. In order to create a plan that works best for you and your family you need to compare the different products on the market.
Like the interest only and roll up mortgages available to retirees there is a solution that is not a mortgage. You have a home reversion choice in which you can sell part of your home if you have no lingering attachment to it. You sell the home but do not gain a repayment or interest accrual through it. Instead, the money is equity given to you before the final sale of your home. You select how much you sell to ensure there is something for your beneficiaries.
While home reversion does sound appealing it does not work for everyone. You do not receive the whole value of your home, just a percentage where you get the entire full value of your home through the lifetime mortgage process especially with Stonehaven equity release.
While you do need to speak with your family and a financial adviser, remember this is your retirement. You can decide if Stonehaven equity release is the best solution for you in either form discussed above or if you wish to wait until you are further in your retirement. Sometimes waiting a little ensures a larger lump sum and fewer years for the interest to accrue.
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National Equity Release Pension Conference, Bath Street, Bakewell, Derbyshire, DE45 1BX.
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