Below are three common myths surrounding Equity Release:
YOUR CLIENT WILL NO LONGER OWN THEIR HOME
Taking out a Lifetime Mortgage doesn’t mean your client no longer owns their home. They will retain ownership of the house they live in for life, even if they move into a long-term care facility. By keeping their present property a primary residence, your client will always own their home.
Should your client have an outstanding mortgage on their property, it would not affect their application for Equity Release. All that’s required is for them to repay the remaining balance of their existing mortgage, which can be done either with savings or with funds from the Equity Release process. Once this is paid off, the rest of the money released is your client’s to be used however they wish.
YOUR CLIENT’S FAMILY WILL BE LEFT WITH NO INHERITANCE OR WITH DEBT
This is a very common misconception. Your client simply needs to consider the right Equity Release plan for them. Certain plans will help to protect equity, safeguarding against your client’s family losing their inheritance. These plans allow your client to release the money they need right now whilst ensuring something is left behind for their children.
The amount available is likely to be reduced, but your client can relax in knowing that their family is taken care of. When your client’s home is eventually sold after their passing, their Lifetime Mortgage will be paid off and no other fees owed. The income from the sale finances the payment, so your client’s estate won’t be left with any debt.
A No-Negative Equity Guarantee makes certain that neither your client nor your client’s family needs to repay a higher amount than their home’s market value.
YOUR CLIENT WILL BE UNABLE TO MOVE HOME EVER AGAIN
Considering financial options can seem daunting for your client. It is true that Equity Release isn’t right for everyone, however, your client will not be locked into their present home should they choose to go this route. Your client will be able to move or downsize if they wish, although certain restrictions may apply.
Choosing an Equity Release plan that already accounts for downsizing protection allows your client to complete their Lifetime Mortgage payments without financial penalties: your client simply uses the income from selling their present home. Should your client choose to move home, their Equity Release plan goes with them.
Make Joshua Jacob your first port of call for Equity Release enquiries.
Call us on 0333 344 9682