Your daughter’s boyfriend proposed three months ago. Now there are wedding plans underway, but they’ve been sluggish due to financial problems. Since you want your daughter to be happy, you start looking for financial solutions to help make her wedding unforgettable. You dig into your pension pot, but nothing seems to be enough to cater to the massive bill…your daughter wants a fairytale, not-so-cheap wedding. Now you have to look at other alternatives, and that’s when you stumble on equity release.
After reading some few articles, you’re stuck and don’t fully comprehend what this financial product is all about. Well, don’t worry. Equity release1 is a mortgage plan that allows homeowners to unlock the value of their homes by turning it into a cash lump sum or monthly income. It also doesn’t require you to make any monthly repayments until the loan term ends, which is usually when you die or move into residential care. Moreover, with easy access to the home equity calculator, like the one from nationwide equity release, you can figure out how much you can release before you even go to the financial advisor.
Figuring Out Equity Release Schemes
The plan is designed for retirees aged 55 and above. It also targets homeowner within the remits of the UK and those with estates worth more than €70,000. So, how does one get to figure out how much their home is worth? Well, taking an equity release plan subjects you through a rigorous process. In this process, you first have to ensure that you find a reliable financial advisor (as recommended by the Equity Release Council2) to help you understand all the perks, cons and costs involved with taking out the scheme. They’ll also help you weigh other alternatives to help you figure out if equity release is your best option.
After you’ve decided to stick to taking out the scheme, the financial advisor will then make an application on your behalf, to the plan provider of your choice. The Financial Conduct Authority (FCA)3 regulations state that you can’t make the application yourself since it’s stringently an advised process. The plan provider, upon receiving your application, will trigger a valuation process to figure out the actual value of your estate. The property valuation process is a crucial and integral part of the application process. Moreover, the equity release company will cater to the valuation process, and it’s mostly carried out within a week of your application.
When the chartered surveyor4 carries out the valuation, your plan provider will ensure that any amendments to paperwork are done. For instance, the equity release company can opt to offer you a revised illustration, thus forming the basis of the offer, assuming that your residence conforms to the equity release company’s lending criteria. When you receive the offer, your advisor and the preferred solicitor will also receive a copy.
Only then will the solicitor5 contact you to schedule a face-to-face meeting, where they’ll take through the legal guidelines of equity release. They’ll also start the conveyancing process, together with the lender’s solicitor. The process can take about four weeks, based on the complexity of your title. Once they’re satisfied and things so smoothly, you’ll have your money in no time, pending on the type of equity release you chose.
So, fear not. With equity release by your side, you can pay for all the wedding expenses and also get your daughter that dream wedding dress she’s been eyeing. If you haven’t started the process, get up and hurry to your advisor today and make your daughter’s wedding the envy of the country!