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.

Switch Deals Now Whilst Halcyon Times Exist For Equity Release Mortgages

Typically, older equity release mortgages can leave you steeped in high interest charges that are simply eroding the family’s estate. While some people will continue stressing with their month to month equity release charges, others will opt to make a change in their lives for the better by considering remortgaging their equity release scheme. To swap equity release schemes can ensure a better deal for many older equity release clients.

Understanding Your Choices
If you find that you are wasting money and time, or someone you know is wasting their time with an old equity release mortgage plan, you may want to advise them to look to swapping equity release schemes for their own good. Performing the switch to a new lifetime mortgage plan can be easy and quick, but will also relieve plenty of stress that you are now in a better position to save the equity in your property . And the time for switching to a new equity release scheme has never been better with interest rates being lower than they have ever been. Therefore, it is the perfect time to make the equity release switch.

You may be wondering how exactly one can switch from their old plan to a new equity release scheme. The process is incredibly simple and should not take too much of your time. Have you never owned a mortgage? Did you never remortgage and transfer your debt to a new lender. Well that is exactly what switching equity release schemes is all about. Call it an equity release remortgage.

All that is required of the individual is to get in contact with an independent equity release consultant. They will review your information; take down your existing plan details in order to complete a switch plan analysis. This will give you a definite decision as to whether or not you should swap equity release schemes by comparing your old, to new plan. Ensuring that all set up costs are accounted for and any early repayment charges included within the calculation, the adviser can then roll out the news.

What benefits can come by switching equity release schemes?
One of the major benefits of switching lifetime mortgage plans is down to interest rates. Rates during the latter end of 2013 were the lowest that homeowners have seen in years; these incredibly lower rates you could save £1000′s over the long term. Another benefit of choosing this type of plan is the greater flexibility now available whereby you have the option of applying for drawdown equity release schemes with absolutely no problem. The last benefit is that the startup fees for modern day equity release plans are much lower due to the inclusion of special offers such as cash backs and free valuations.

Now, a year later interest rates are starting to edge back up slightly, but this does not take away from the benefit of swapping out your current equity release. Instead, now is still the time to ensure that you are able to change your mortgage for the better. Remember, these equity release interest rates are fixed for life, so if there is a chance, grab yourself one of the best equity release deals around which could very well be the Aviva Flexible Lifetime Mortgage Plan with rates currently as low as 5.68%. (5.88% representative APR).

There are some disadvantages to the situation too, which you need to be aware of.

Cons of Swapping your Equity Release Scheme
Like swapping any mortgage, you will have certain fees associated with the switch. You definitely need to speak with a representative of an equity release company to determine if switching to a lower interest rate is going to save you a great deal based on the fees. The good news is in most instances you will be able to save a great deal; however, not everyone is alike especially given the length of time you might have carried your equity release plan.

• Check with a lifetime mortgage adviser, who should be qualified & experienced in such matters of switching plans & possible even worked for these legacy companies.
• Overview your current case and the amount of interest that you have earned so far in the build-up of your compounding interest. A redemption statement would evidence this data
• Check to see what types of interest rates are currently on offer –usually equity release comparison websites can provide these rates & details for you
• Decide if your home value has increased or decreased. You can usually gauge valuation from websites such as Zoopla where recent sales may have been listed.

Along with interest rates becoming lower there are many areas in the United Kingdom that have suffered housing devaluation. You may currently sit in a negative equity situation, which could hinder your ability to swap mortgages. If you are lucky and your home has increased in value dropping the interest rate is a perfect opportunity to ensure inheritance for your family.

Always remember to speak with your family and consider your options. With interest-only lifetime mortgages on the market, you could swap out of your older plan and start paying a little interest to help save your family’s inheritance. Assess your situation and what saving your family home means to you before you begin to renegotiate on any mortgage plan. Also find out if you have a great deal versus newer deals, as there are cases that do.

Looking to swap equity release schemes should be undertaken on a regular review basis, particularly for some of the older equity release plans from yesteryear. There are many legacy plans from companies who have now withdrawn from the equity release marketplace. Providers that were once very popular such as Northern Rock (now Papilio Equity Release), In Retirement Services (Sold their mortgage book to Newcastle Building Society & Just Retirement, Aviva with their Index-Linked Equity Release Plan or the Norwich Union Capital Access Plan should all be reviewed. Also, not forgetting Mortgage Express who had a maximum release lifetime mortgage along with the Portman, Saffron and Godiva (Coventry Building Society).

There are so many legacy equity release plans out there, and too many to list completely, but they are all still contactable to ascertain the latest redemption statements for your adviser following the completion of a Letter of Authority.. So to enjoy lower startup costs, fixed interest rates and the availability of drawdown plans, now is the time to decide on whether to swap equity release schemes and reap the benefits!