Equity release is complex and homeowners need professional help especially on making the appropriate plans. Professional advice on Responsible Equity Release is important. Depending on an individual’s unique homeownership circumstances, the right plan and procedure to be followed when claiming equity release will be advised. One may also check the testimonials of clients who have successfully claimed equity release. You may learn a tip or two on the best way forward. Some people are not even aware of this kind of savings. It is also not easy to determine exactly how much your home equity release amounts to. This can be determined with a little help from professional consultants. There are basic things you ought to know about the procedure to be followed in order to access your funds.
Here are 5 Things you should know about the procedure to equity release:
1. Professional advice
There are professional companies approved by Financial Services Authority to advise homeowners on the option of getting an equity release. There are various plans and schemes that may be applicable to your home ownership circumstances. It is not easy deciding on what scheme is best for you. An adviser will be required. A small research online can help you identify reliable advisers. You will benefit more from equity release if you get professional advice on the same. This is the first step towards getting an equity release.
After you fully understand the equity release concept, available plans, and schemes, you should seek to know if you are eligible. Usually, citizens who are over fifty-five years old may claim. Another criterion used to determine if one is eligible is the value of the property. If your property is worth over thirty thousand pounds, then you are eligible.
Calculating the value amount
Different homeowners will access a different value of equity release. It is determined using an equity release calculator. It is instant and this enables homeowners to make a decision fast. Most of them are looking for money to take kids to college or take a vacation. With an equity release calculator, you can easily find out how much you are entitled to claim. A professional adviser can advise and guide you on using the instant calculator.
Any complaints regarding equity release are handled by FSA. They also arbitrate in case of disputes. Before you review your options on equity release, it is a good idea to go through the FSA requirements. You should also know your rights as a consumer so that you know you’re your entitlement is, and how to claim it.
Benefits and tax
Equity release is a form of income. It may have an impact on the benefits you are entitled to and taxation. Your adviser can weigh your options and ensure that you benefit from taking equity release. Some of the benefits that will not be affected when you apply for equity release include disability allowances, child benefits, and state pension among others.
With these few tips in mind regarding the procedure to be followed in equity release, you will be able to understand the concept even more. Remember, before you make the final decision on equity release, the aspect of inheritance, and professional advice from experts should be considered. Secondly, knowing the impact this will have on other aspects of your life makes it easier for one to make the decision.