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Equity release: your questions answered

Posted on: 21 May 2020 by Key Equity Release

When it comes to equity release, we all have questions. Key Equity Release can help you answer those questions and find out if it is right for you.

What is equity release?

Equity release is a way for homeowners over 55, whose property is worth at least £70,000, to release tax-free cash from their homes. It is an increasingly popular way for people in, or approaching, retirement to boost their finances. 

Is equity release safe?

Equity release is regulated by the Financial Conduct Authority (FCA) whose primary role is to protect customers and enhance the financial market’s integrity. Expert advice is required before you can take out a plan.

Will I still own my own home?

Yes, with our plans, you’ll still own your home and can stay in it for as long as you like.

Do you have to make monthly repayments?

Typically there are no monthly repayments to make as the loan, plus roll up interest is repaid when the plan comes to an end.

How much can I release?

This depends on your age, how much your house is worth and your general health and lifestyle. On average, Key customers had access to £90,374* in 2019.

Try Key Equity Release’s free calculator to find out how much you could release.

Will I ever fall into negative equity?

No. All our plans meet Equity Release Council standards and come with the no-negative-equity guarantee, meaning you’ll never owe more than your home is worth.

Can I move house?

Yes. Subject to lender’s criteria it is possible to move home and take your plan with you.

Who handles the legal side of the process?

An independent solicitor will need to be appointed by you to handle the legal side of the process for you. Key Equity Release want to make sure you are comfortable with your decision so can suggest solicitors with equity release experience if you prefer.

What do people use the money for?

Key customers spend the tax-free cash they release for many different things – some of the most popular are travel, home improvements and repaying existing debts. You should always think carefully about securing a loan against your property.

Can I still leave an inheritance for my family?

Yes, you can. Some of our plans guarantee that a set percentage of your home’s value, at the time your plan ends, will form a part of your estate for you to pass on to others in your will as long as you do not take the full release amount available.

Can I take out equity release if I still have a mortgage?

Yes, however, you will need to repay the mortgage using the money released. Any funds left over are yours to enjoy.

What happens when I pass away or move into long-term care?

Your home will be sold once you or the last surviving applicant die or move into long-term residential care. The sale proceeds will be used to repay the amount you owe and any money left will go to your estate.

How is my home’s value assessed?

Your property will be valued by an independent RICS-registered surveyor so you can be confident of an unbiased opinion of your property’s worth.

Why don’t you charge an advice fee?

All of our equity release advice relates to our range of Key branded products and is completely free of charge. So, you can find out if it’s right for you without it costing you a penny.

Key Equity Release offer Lifetime Mortgages only, which is a loan secured against your home. Typically there are no monthly repayments as the loan plus roll-up interest is repaid when the plan comes to an end following death or entry into long term care. Remember equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

If you have questions about equity release, why not request your free mythbusting guide from Key Equity Release which provides a more in-depth look at the product options available, and read about others’ experiences with equity release.

Calculate how much you could release with Key Equity Release’s free calculator.

*Key Data Full Year 2019

 

 

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