You’ve been looking forward to going on that road trip to Malawi and enjoy your retirement. Nonetheless, you haven’t paid your car insurance premiums and based on your current financials, and you don’t see that happening anytime soon. Well, that’s why equity release1 was established. The mortgage loan helps homeowners unlock the cash tied up in their estates and turns it into a cash lump sum or monthly income, and with the equity loan calculator, you can quickly check out how much you’re eligible for.
To figure out the maximum amount you can borrow, you first have to go to your financial advisor and seek advice on the plan that best suits you. You’ll then have to choose the best plan provider to help you understand the most suitable equity release plan for you. The plan provider will get an independent surveyor2 to do a property appraisal on your property. After the assessment is done and you know how much your residence is worth, you can go ahead and check out how much you qualify for.
To get an idea of the maximum amount you can release, you just have to input the following details:
- Your estate’s value which should be more than €70,000 and, in the UK,
- The age of the youngest homeowner, which is at least 55 with the lifetime mortgage plan and 60 with the home reversion scheme
- Your postcode, to confirm the location of your residence
The equity loan calculator results will not only show the amount you can borrow with the lifetime mortgage option, but it can also help you figure out how much you can get using an impaired lifetime mortgage scheme (if you have any health conditions), or the voluntary repayment plan.
After seeing how much you can unlock and after the property valuation process, your financial advisor will then help you look for an independent solicitor3who can help you through the legal process of equity release. The solicitor will then schedule a face-to-face meeting with you. Moreover, as per the Financial Conduct Authority4, the FCA’s, rules and guidelines, you as the homeowner should make a consultation with a certified and qualified solicitor and not a paralegal.
When the solicitor goes through the necessary legal and regulatory process with you, they’ll start the conveyancing process together with the plan provider’s chosen solicitor. The conveyancing5 process can take up to four weeks, based on the complexity of your title.
When the equity release company is satisfied with all the legal procedures carried out by the solicitor, they’ll set a completion date – meaning that the legal expenses will be transferred from the plan provider to your solicitor.
The solicitor will then settle any other legal advice and fees directly from the equity release proceeds and the remaining equity transferred into your account. As per the equity release rules and regulations, you must ensure that you settle your outstanding mortgages first before using the loan to pay up your car insurance premiums or make that trip to Malawi.
So, you don’t have to keep worrying about your finances anymore. In any case, retirement should be the time to enjoy life and give stress and other financial worries a kick to the curb. With equity release, you can pay the car insurance premiums, buy another luxurious vehicle, buy a second home, travel around the world and even enjoy helping out your family make their dreams come true.