Equity Release in Liverpool
If you are a retiree living in Liverpool, an equity release may provide you with beneficial source if income if you meet with certain criteria. In order to eligible for an equity release, you must be over a certain age (usually around 55) and own your own home. If you are looking for an equity release in Liverpool, please see the link below for a quote on an equity release policy.
How Do They Work?
Like anywhere else in the country, an equity release in Liverpool essentially work by freeing up the stored equity in peoples homes in order to provide them with either a cash lump sum, or with a secondary income that can be used to supplement their pension.
Depending on the type of equity release deal that is selected, the customer may either take out a secured loan against the value of their home (a lifetime mortgage) or a sell a percentage of their home to the provider, (home reversion plan) in exchange for the loan they will receive.
Most policies allow the policyholder to continue to live at the property for as long as they wish, although once they pass on and the property is then sold. A portion of their assets will then be given to the provider to cover the cost of the loan, depending on its size.
Some Potential Drawbacks
- As a percentage of the policyholders estate may automatically go to the provider, potential borrowers should carefully consider the effect this may have on their relatives after they have passed on
- Like many other mortgage agreements, customers may be expected to pay arrangement, legal and valuation fees in order to set up an equity release
- The loan that is received in exchange for the property may not reflect the market value of the home
- Equity releases are lifetime commitments, and often carry heavy penalties and early redemption fees for customers who wish to opt out an agreement.
Getting an equity release quote in Liverpool is as simple as clicking on the links on this page and filling a simple form.