Equity release for a home in Kent
As a home owner in beautiful Kent you know what a lovely place it is to live. Originally a medieval kingdom there’s a rich historical heritage to explore, plus of course those famous white cliffs; the garden of England is a much sought after place to live. Consequently house prices are consistently high and rising, which mean those who are mortgage free have a great asset to their name. Imagine if you could free up some of this cash without having to downsize to a smaller and cheaper property? An equity release scheme lets you do exactly that.
What does equity release actually mean?
In brief it’s a way to access a portion of the monetary value of your home, and enjoy it without having to make any repayments during your lifetime, (unless you choose the one option which allows that.) Although there are several types of equity release schemes available the majority work on the same principle of a regular mortgage – except you get the money and the repayment occurs after your death.
Who is eligible for equity release schemes?
Generally you need to be at least 55 years old, and own your property outright. Properties may need to be worth over a certain amount to qualify.
A brief look at different equity release schemes
There are two categories of equity release schemes; lifetime mortgages and home reversion plans.
Standard Lifetime Mortgage
A straightforward option – qualifying homeowners enjoy a cash free lump sum to use however they like, and then continue to live in the property. After their death the house is sold and the amount owed is repaid from the sum raised.
Enhanced Lifetime Mortgages
Identical to a standard lifetime mortgage except for one crucial point – this version releases a higher percentage of equity because the occupant(s) health and age allow it.
Drawdown Lifetime Mortgages
As with other lifetime mortgages a certain amount of equity is available to the homeowner, but in this instance it is withdrawn as and when needed. This works well for those who want access to cash for emergencies or as a security blanket, and it can also mean a lower figure needs to be repaid when that time comes.
Interest Only Lifetime Mortgages
Some people prefer to release equity but also try to keep some in the home for their family to inherit. One lump sum is released, as with regular lifetime mortgages, but monthly interest costs are made by the homeowners, rather than payment being rolled into the final amount owed from your estate.
Home Reversion Plans
These are not so popular anymore as modern lifetime mortgages offer so many more benefits. Home reversion basically means signing over your property for an agreed sum, and then living there for the rest of your life. The difference here though is that you are no longer the owner, and on your death or move into long term care all the money from its sale is taken.
Make use of your cash
There are no rules or regulations when it comes to deciding what to do with the equity you release from your Kent home. A few of the most popular ways to use the cash are:
- Travel – from relaxing cruises and rail tours across Europe, to exploring more of the UK or even buying a camper van and hitting the open road. The world really is your oyster.
- Buy a vehicle – perhaps it’s time to replace the family car, or maybe something with two wheels is more appealing?
- DIY/decor – this is a great opportunity to get your home looking exactly how you want it. Perhaps some redecoration or an extension is a good idea? Are your white goods feeling their age? Do you need new carpets? Furniture? You can choose what you want and need to make life comfortable.
- Reduce debts – it’s not very exciting but being able to live debt free can make daily life so much more fun.
- Treat your family – it’s always nice to be able to help your children and grandchildren out.
Always get advice
There are several different options available, so it is vital that anyone considering releasing cash from their Kent homes seeks independent advice from a reliable source. London Equity Release staff are experts in this field, with an excellent understanding of the property market in the home counties. Every day we offer no obligation and completely confidential advice and information to those who wish to know more. We are registered with the Financial Conduct Authority, so you can be assured our services are professional and honest.
Get in touch
Remember that out friendly and helpful team are here to answer queries and give impartial advice, so if you own a property in Kent and would like to know more get in touch with us today.