Tag: Equity Release Lenders

The Importance of an Equity Release Property Valuation

A Stonehaven equity release plan is a great way for people to obtain an additional source of capital in retirement. If you are considering applying for a Stonehaven Equity Release plan, one of the most important factors that will decide how much money you are eligible for is the property valuation. Property valuations are a standard part of the equity release application process. An estate agent can be of great assistance during the property valuation process.

Seek Independent Advice
It is also recommended to seek the advice of a qualified equity release adviser before the property valuation process. An equity release adviser will help you to obtain a good idea of the value of your property prior to application so that you have a good idea whether the amount you require is practical.

Property Valuation Options

• The internet is also a good resource to find realistic ideas of the current value of properties especially of properties that are similar to yours.
• Another good idea to consider during the property valuation process is to request a market appraisal from your local estate agent. These can usually be obtained free of charge.

Location Matters to Equity Release Lenders
Apart from the valuation figure, Stonehaven will also be interested in the location of the property. If your property is located on a large council estate, you might have some difficulties obtaining a Stonehaven equity release plan since Stonehaven do not like properties to be located on a large council estate. You might also experience difficulties if your property is located on areas that are designated as flood risk areas. Stonehaven does not accept properties that are located on flood risk areas either. Check the environment agency website for more details on flood areas.

Factoring Valuation at the End
Property valuation is not only important during the equity release application process but it is also important when the property is being sold. Normally, the property is sold at the end of the equity release plan which normally occurs when the borrower dies or has moved into a long term care home. The property is normally sold to repay Stonehaven Equity Release.

In most cases, the property would hopefully have increased in value. A final property valuation needs to be conducted to obtain the current value of the property for which it can be sold. This would be at the end of the equity release mortgage term, once death or long term care has been attained. Once the property is sold, Stonehaven is repaid and the remaining amount goes to the beneficiaries. In most cases, the beneficiaries would be the children or grandchildren of the borrower.

Focusing on Financial Product Benefits
For the most part the focus has been on valuations and what will happen if you decide equity release is right for you. There are other things you should consider before you hire a company to do an evaluation of your home particularly if you will need to pay fees for this valuation.

There are benefits to equity release:

• Tax free cash
• Having money during retirement to live on
• Going on holiday
• Helping out your kids
• No monthly payments necessary

You can use the money in any way you want which is great. It means you can have those holidays you always wanted. You can also enjoy a little improvement to your home. For many improving their home is the purpose of such a loan so they can increase the value of it for their children.

Disadvantages to be Wary Of
Depending on the amount of loan you take out you might threaten the inheritance left behind for your family. This is why adding to the value of your home is a good idea if you can afford it with the loan. If not there are ways to ensure you protect your children’s inheritance such as an inheritance clause in the agreement. It is always a good idea to get advice about the potential clauses that will reduce the negative effects of an equity release.

You also do not want to use this method if you truly want to leave the home in your family. If the home does not matter, you might also want to consider home reversion. Home reversion sells the home while you are still living in it. You retain a portion of the home and a lifetime tenancy agreement. In exchange you have funds to live on, but you do not have a mortgage payment you have to worry about in the end. This is another way to guarantee a money inheritance is left for your family members.

To receive an estimate of property value contact our team today on 0800 678 5159 and make certain to mention Stonehaven equity release is a product you are looking at so they know which company to send the estimate to.

The Benefits of Interest Only Lifetime Mortgage Calculators

For those considering equity release, you may have come across an interest only lifetime mortgage calculator. These are free online tools which offer to calculate the maximum lump sum you would be eligible for and what plans you would qualify for. Many people are reluctant to provide their personal information to these tools. However, there are a number of benefits associated with this readily available and easy to use tool.

The Benefits of an Interest Only Lifetime Mortgage Calculator:

• Quick qualification information: Equity release schemes such as lifetime mortgages have specific qualification criteria. This is slightly more complex than other forms of conventional financing. An interest only lifetime mortgage calculator can provide quick information about whether you meet the qualification criteria. This can save a great deal of time for those who would not yet qualify and allow them the opportunity to decide whether to postpone equity release or pursue other options. For example, many people are unaware that equity release lenders consider the age of the youngest applicant in joint applications. This would mean that a couple aged fifty eight and fifty four would be ineligible for equity release for at least another year.

• Highlights the implications of interest rates: An interest only lifetime mortgage calculator can be an excellent way to highlight the implications of different interest rates and specific plans. You will be able to see the long term costs involved in committing to a lifetime mortgage plan in order to make an informed choice about proceeding forward.

• Compare plans: Many of the more in-depth forms of calculator allow home owners to compare different plans and products. This can allow the home owner more control and information to make informed choices. By exploring the implications of different plans and products you can explore whether it would be more beneficial to opt for a plan offering a slightly amount of release or one which offers a more attractive interest rate. While many people are interested in obtaining the maximum amount of release possible, an interest rate of even one per cent lower can significantly reduce the overall long term cost, which may make it a more attractive deal.

How to Make the Best Use of an Interest Only Lifetime Mortgage Calculator

Interest only lifetime mortgage calculator tools provide an extremely useful research resource. However, there are a number of guidelines to make the best use of these free tools:

• Use more than one calculator: An interest only lifetime mortgage calculator is restricted to being linked to the specific product range of the company or broker. This may not represent the best possible deal for your circumstances. In order to obtain a better insight into the marketplace, it is best to use more than one calculator. Ideally, you should also incorporate using a general equity release calculator into your research to double check that a lifetime mortgage would be the best type of equity release for you.

• Double check your information: Calculator tools are purely mathematical. They have no capacity to check the validity of your information. Therefore, there is a responsibility for you to double check your information. You should spend a little time researching property valuations in your area to ensure that the figure you enter for your property value is as accurate as possible. Additionally, request an up to date balance from your current mortgage provider. Both these factors will affect the amount of equity in the property and inaccurate information will compromise the reliability of the results from the calculator.

• Plan out how much you actually need first: Many people begin their equity release research by looking for the amount of release sum which would be available to them. However, it can be a good idea to calculate how much you actually need before you begin. This will give you an indication of whether a particular scheme would be sufficient for your needs right away before wasting any more time researching. You may be pleasantly surprised by the amount of equity release available to you, which would give you more options on your flexibility which could provide a better deal.

If you are considering equity release, an interest only lifetime mortgage calculator can be a good starting point. However, it is important to realise that it should not replace professional advice. The calculator can provide the information you may need to make an informed choice about whether you would like to apply, but a professional adviser will be able to assist you in assessing the specific benefits and limitations of your chosen plan.