Equity Release Rules
The rules for equity release policies tend to be quite strict, as these agreements are generally aimed at a very specific customer base. The specific conditions and rules that must be adhered to may vary a great deal depending on the provider, and it is therefore important to carefully consider the pros and cons of a particular deal before committing to it.
Please see the link below for a competitive equity release quote.
In terms of eligibility, there are several rules and conditions that customers may need to adhere to before accepting an equity release deal.
Equity Release Rules
- Depending on the provider, the customer may be expected to be retired and over a certain age in order to qualify. (50, 55, 60 etc)
- Although it may seem obvious, the customer must be a home owner
- The property will generally be expected to be in a reasonable state in terms of its maintenance requirements and upkeep etc, customers with a property that has fallen into disrepair may find it very difficult to find an equity release policy
- Many insurers will require the property to be covered by an appropriate buildings insurance policy
Depending on the provider, the customer may be expected to be retired and over a certain age in order to qualify. (50, 55, 60 etc)
When searching for an appropriate policy and comparing different equity release quotes, customers should also consider exactly what type of agreement will be best suited to their requirements.An equity release will generally be suited to an older customer who may perhaps be the owner of a property outright, but without a sufficient source of income to last them through their retirement. These agreements allow the customer to essentially take out a loan on their home, or sell a portion of the property, all while being allowed to remain their for as long as they wish.Using a home reversion plan, the customer may sell a share of their property to the provider in exchange for either a cash lump sum, or a regular source of income. Lifetime mortgages are slightly different and instead, they allow the customer to taker out a secured loan on their home.