The Definitive guide to Fast Equity Release
Here we break down everything you need to know about Fast Equity Release.
You voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential by us and held in accordance with GDPR May 2018 requirements. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone. By submitting this information you have given your agreement to receive verbal contact from us or one of our trusted partners to discuss your mortgage requirements
Equity release has been around for years, but the sorts of plans, features, and protections have evolved dramatically. Overall, plans have gotten more affordable, flexible, and secure. While this is wonderful news, there is a lot of outdated information concerning equity release. So, what does equity release means in 2021? Equity release programs provide UK homeowners aged 55 and higher access to a portion of the equity in their house. Equity release gives either lump amounts or monthly income that does not have to be repaid until you die or go into care. Your estate then repays the loan, generally with the profits of the sale of your property.
I’ll explain all you need to know about fast equity release so you can determine whether it’s a good choice for you.
How Can You Qualify for Equity Release?
You must be 55 or older to qualify for equity release. The property on which you accept equity release (the security) must be worth more than £70,000, and any mortgages must be paid off before the equity release begins. You may utilize the equity release cash to pay down your mortgage. Your income or credits do not restrict access to equity release. While you live in your home, you are not obligated to make any payments toward an equity release.
Other more particular aspects, such as your property type and structure, are covered in more detail in my post, thoroughly outlining equity release eligibility. It also offers a quick eligibility calculation for equity release.
How Much Money You Can Release?
The minimal amount of Fast equity released is £10,000. The maximum amount of money you may discharge is determined mostly by your age and the value of your home.
Types Of Modern Equity Release
There are two kinds of equity release plans available: a lifelong mortgage and a home reversion plan. They both provide a flat amount of cash, but they are quite distinct equity releases.
Over 99 per cent of new equity release plans are lifetime mortgages, which function similarly to residential mortgages. The mortgage lender sets a charge on your property for the equity release loan, and you retain full ownership of your house.
Home Reversion Plan
In the 1990s, home reversion schemes were popular, but they are no longer encouraged. While they might provide you with additional money, they also require you to sell a portion or all of your house. For most individuals, the disadvantage significantly surpasses the potential financial gain.
How Long Does It Take to Get Equity Release Advice?
The first step in obtaining equity release is to seek professional assistance. The consultation procedure should be separated into two sessions, and only then should an application be submitted. Each Equity Release advice appointment lasts one to two hours on average. As a result, you should plan on spending two to four hours with your adviser before applying.
There is no specific time between visits; nevertheless, they should be scheduled on separate days. Between meetings, I usually take a couple of days off. However, most of this is dictated by you, my customer, regarding how rapidly you want to go forward.
How Long Does It Take to Complete an Equity Release Application?
You will be given a suggested line of action if you seek financial advice. When submitting an equity release application to a lender, you can anticipate receiving your equity release money in roughly eight weeks. We’ve seen applications take as short as three weeks in the past. On the other hand, more sophisticated applications have taken several months to finish.
Regardless of the plan you choose, the application procedure will be quite identical. Let’s go through the seven stages you’ll need to acquire equity release and how long each one will take.
Completing The Application Form
All equity-release lenders will provide an application form. The majority of them need you, the customer, to sign the application form. On the other hand, some lenders merely need your signature later to accept the official mortgage offer with your solicitor.
Submit Applications to The Lender
After completing the application form, you may send it to the lender. Different lenders accept applications in a variety of methods. Some demand that the forms be displayed, while others need that they are emailed, and still others have dedicated online portals for advisers to submit their applications. The lender will officially recognize your application, regardless of how it is made and will dispatch a surveyor to evaluate your home.
Many lenders and surveyors have adopted a dual peak approach to property values after the Covid-19 epidemic. The surveyor will conduct a desktop value of your property when practicable. They may ask for digital photographs of your house to aid their evaluation.
If a physical valuation is necessary, the surveyor will give you a call to schedule an appointment. The surveyor would enter all rooms in your home during the physical valuation.
Formal Mortgage Offer
Your application will be sent to the lender’s underwriters after the surveyor’s value report has been received. The underwriter’s responsibility is to ensure that your property is secure enough to protect the loan’s backer. Note that lenders often use numerous funders for various mortgage packages. A formal mortgage offer will be provided if the underwriter is satisfied. The mortgage offer will be sent to you and your solicitor separately.
Once the lender receives the surveyor’s value report, it normally takes 48 hours to release the official mortgage offer.
Equity Release Legal Advice
When your solicitor gets a copy of the mortgage offer, they will call you to set up a meeting to provide legal advice on Fast equity release. It is required that you get independent legal counsel and sign the mortgage deed before a witness. Because the papers must be originals, this procedure should take around a week. The completed mortgage file will be sent to the lender’s solicitor, who will seek a completion date.
Depending on what is mentioned, the lender’s solicitors may issue requisitions (further inquiries and documents requests), which may be a long procedure.
Your solicitor will pay you the money in the manner of your choice after the case is completed. If you pay for a CHAP’S transfer, you may get your money the same day; otherwise, BACs may take three days.