Equity release for a home in Hertfordshire

Home owners in Hertfordshire are in an enviable position. With healthy house prices, and fierce competition amongst buyers for property up for sale, there’s a lot of opportunity to make cash should you decide to sell. But what about if you love your home and don’t want to give it up for something smaller and cheaper? That’s where equity release schemes could prove to be the perfect solution.

What does equity release involve?

Basically it’s a way of releasing some of the cash value of your home without having to sell it or move out. You simply make what is your greatest financial asset into a tool to gain financial freedom, and all without any worries about having to pack a single thing.

Are you eligible for an equity release scheme?

There are many different equity release providers, and there may be some differences between the guidelines they have in place, but in general to qualify for equity release you must be:

  • Aged 55 years or older
  • Own the property involved
  • Live in a property over a certain value

London Equity Release staff are experts in this field, and can provide all the information you need on the various options available for you to consider.

What are the benefits of releasing equity from a Hertfordshire home?

Releasing equity is a sensible option if you want to have the best of both worlds; a tax free lump sum (or several), complete freedom to spend the cash however you choose, no need to move out of your home, and, in all but one option, nothing to pay back during your lifetime.

Popular ways to use cash from equity release schemes

Equity release schemes give you access to a percentage of your property’s market value. Owning a home in a desirable county like Hertfordshire, where property prices are high, makes this an even more desirable way to gain financial freedom without giving up the family home you are both fond of and very familiar with.

People choose to do all kinds of things with the cash, incusing redecorating or re-modelling the property, buying new white goods or furniture, replacing the family car, or buying a motorhome for road trip adventures. Some use it for holidays, to help a grandchild buy a car or a property, or simply invest the cash to establish a regular supplementary income.

Types of equity release schemes

Home Reversion Plans

The forerunner to more modern equity release schemes, home reversion plans are less popular these days. This is largely because they involve giving up all rights to your property in return for the cash sum of equity released. Basically, once you die all money raised from the sale of the property is paid to the lender involved. This means that say your home doubled in value there would be no excess left for relatives to inherit.

Modern equity release schemes are a little different.

Standard Lifetime Mortgage 
This is probably the most popular option, as unlike a regular mortgage no repayments are required while those named on the agreement document are still alive.  The homeowner(s) are free to use the cash sum advanced as they wish, continue to live in their home, and crucially, still own it. When the property is eventually sold the money raised is used to repay the money owed, plus interest charges. Any surplus is distributed according to the terms of your will.

Enhanced Lifetime Mortgages

Basically the same as the standard lifetime mortgage, the enhanced version releases a higher percentage of equity on a Hertfordshire property for those who qualify based on age or their health condition at the time of applying.

Drawdown Lifetime Mortgages
If you want to take advantage of equity release but not receive the cash in one large payment this is a good alternative. It allows you to withdraw cash up to the maximum sum agreed, as and when you choose to. This provides an excellent safety net for unforeseen expenses, and repayments are only made on what you borrow the final total owing is variable.

Interest Only Lifetime Mortgages
This is a slightly different equity release scheme as although the usual one off cash sum is advanced to the homeowner(s) there are monthly interest payments to be made. Anyone who wishes to keep the final total owing as low as possible may wish to find out more about this option.

If you would like more information, or have any questions about how your Hertfordshire property could provide you with lifelong financial security, the team at London Equity Release are ready to help. Get in touch for independent, confidential and no obligation advice on the wide range of options open to you.