Tag Archives: Home Reversion Plans

Is an Enhanced Equity Release Calculator Available Yet?

Enhanced equity release calculator tools are available online. These calculators are specific to the enhanced, impaired, or ill health lifetime mortgage schemes on the market rather than home reversion or other lifetime mortgage products. Given the specific nature of these mortgages, the calculator has to take into account more information than the standard lifetime mortgage.

History of Enhanced Equity Release Plans
A decade ago enhanced equity release plans were on the market through Hodge Lifetime and Partnership Assurance. They provided enhanced options through home reversion plans. However, with changes made by the then Financial Services Authority, now the Financial Conduct Authority, the plans were discontinued, leaving the market without any enhanced home reversion or lifetime mortgage schemes.

In more recent years, new lenders have joined the market offering enhanced lifetime mortgage plans. Partnership re-entered followed by new companies like More2Life, Aviva, and Just Retirement. By new we mean new to the enhanced equity release plan, and not necessarily to the market as a whole.

Following the principles of enhanced annuity, enhanced or impaired equity release schemes use health as a way to provide the maximum equity release amount, which is where the enhanced equity release calculator comes in. Be aware that the more severe the illness is the greater the maximum equity amount will be.

Lenders Supplying Tools
Some brokerages and websites have developed the enhanced equity release calculator to help supply the maximum lump sum an individual may be able to take out of their home. Unfortunately, accuracy is difficult to predict due to the myriad questions on the health and lifestyle questionnaire which determines a person’s life expectancy. This questionnaire is coupled with a mortality indices table based on age and illness to give an applicable value.

This means the calculator is designed to give you the maximum amount based on the worst case scenario. You may or may not be a person in the worst case scenario, but that is the result you will get, therefore, you need to speak with a broker before deciding if this loan is truly right for you.

What can Brokers Do?
An independent financial broker specialising in equity release schemes should be contacted once you have a beginning figure for an enhanced equity release product. The adviser will take the enquiry beyond the standard calculator questions to see if there are any other factors that could release the maximum lump sum or if you will only be able to get a smaller amount. The enquiry is based on a Key Facts Illustration (quote) from relevant providers in the market.

A broker is able to discuss your situation with financial companies lending the money for lifetime mortgages. They can discuss whether there are other factors that might release more or see what current products are available to you.

You should be aware that even if something is advertised on TV, the Internet, radio, or through a calculator calculation, you may not be able to get that same product. This is where the broker comes in. They have resources you do not have available.

Why Use the Calculator
You are probably asking why you should use the calculator at all if you still have to speak with a broker. The main reason to use it is to see the potential maximum lump sum. If the maximum lump sum is not anywhere close to the funds you hope to unlock, it gives you an idea of whether lifetime mortgages and other equity release products are right for you.

Additionally, it tells you whether your ill health is a qualifying factor to release more equity than a standard lump sum. It might be a guide number that results, but it does prove whether going on to the next step and speaking with a broker is worth your time.

While the value might change to a lower one, the original calculation result gives you enough of an answer to get started. There are also times when the calculator is not giving you a high enough number because you have multiple health factors. If you can find a maximum lump sum that works for you based on what you input into a calculator and a broker can get more released it might work out better for you. Of course, as you use the enhanced equity release calculator, you do need to remember it is only an estimate. You always want to speak with a qualified professional who is independent to ensure you are getting the very best product for you.

London Calling for Equity Release Pensioners to Cash in on Booming Housing Prices

Year to year, month to month, the housing sector changes which is good news for London property owners. It has been a buyer’s market in recent years as a consequence of the recession and housing prices falling due to the subprime mortgage issue. Now all of that is in the past and there is nowhere to go but up for many of the Capital housing values. If the 11 per cent price increase from 2013 to 2014 is any indication now is the time to take advantage of London equity release products such as lifetime mortgages and home reversion plans. Before getting to how a lifetime mortgage calculator can help determine if this is the right option, take a look at what the product can help you with.

Lifetime Mortgages Aim to Release Tax Free Cash
In a time where housing prices are increasing each month, there is no reason not to take advantage of financial products that can offer tax free cash in a lump sum. Across the UK prices have increased by 3.3 per cent just looking at the month to month figures. Many websites are reporting an 18 per cent increase from 2013 to 2014 in the London area when comparing last April with the most recent April. For individuals over 55 this means your house in London might be worth as much as 18 per cent more in value than it was last April 2013. From last month you might have 3.3 per cent more value in your home.

All this comes down to the total value of your home and the amount you would be able to release in equity. Consider if your home was worth £200,000 last year and it has increased to £225,000. On a sale you would have £25,000 extra equity. With a lifetime mortgage product you have an increased percentage of this equity that you can withdraw.

When you use a lifetime mortgage, you have the option of taking out a loan that does not require any repayment until you move out to a long term care location, a new property, or you die, hence the “lifetime” descriptive word. Equity is based on the value of your property, so if you have no loan then the total value of your property is what is available in equity.

With lifetime mortgages you can take a percentage which can never end up more than 100 per cent of the property value, at the end of the loan. In other words, when you use a lifetime mortgage calculator, & calculate on a roll-up basis, the principle loan amount plus the compounding interest over the life of the loan can never be more than the final value of the property. This guarantee is provided by all London equity release providers by way of a mandatory option, called the ‘no negative equity guarantee’.

The cash you take out is yours to do with what you wish and without tax consequences. It is simply swapping property for cash through a loan, which is why it avoids capital gains tax. Additionally, by working smart, if any means tested benefits are received schemes such as the drawdown lifetime mortgage plan can be used as a work around. By keeping savings levels under the £10,000 limit, no detriment will be afforded to means tested state benefits by taking smaller & regular chucks from the cash reserve facility.

Methods of Using Equity
The prime reasons Londoners over 55 are keen to take out lifetime mortgages, and you might wish to consider it, is how you can use the money. The money can be used anyway you wish, but more importantly it can be used to increase your home value exponentially.

Home improvements such as for a new roof, extending the home; upgrading the appliances, kitchen countertops, and making it more energy efficient are just some ways to increase your housing value. The more renovations you do towards making your home desirable for the next several years, the more it will continue to increase in value. There are certain home improvements that will matter very little to the value, so be aware of what truly increases the property and consider taking advantage of London equity releases.

Another top reason to take out a home equity release mortgage like the lifetime loan is children. Children and grandchildren more often than not, need financial help. Perhaps it is about paying for university for your son or daughter. Maybe your child needs to buy a house, but lacks a down payment. Whether you invest in a second home or help invest in your children’s educational future, it is an investment you can reap benefits from. A simple London equity release mortgage can solve many financial problems, but always seek professional equity release advice.

Advantages of Lifetime Loans
Not only do you get to use the money as you wish, but you can also increase the value in your home if you desire. The money is going to be tax free even if you decide to give a little gift to your children. As long as you keep your “gift” under a certain amount there is no capital gains tax or inheritance tax after seven years for them. You get to help them out and they get a little inheritance to enjoy while you are still alive.

Use a lifetime mortgage calculator to determine what you could release from your London property and start making plans today to enhance your retirement living standards.

What is an Equity Release Eligibility Calculator?

As equity release has become more and more popular in recent times and the interest in equity release plans has increased, new tools are emerging to help users make sense of whether people meet the eligibility test to meet the wide variety of equity release plans available. Every bit of help is needed when trying to find the best equity release plan that could suit them and the first port of call would be to establish eligibility.

Equity release is a potentially life changing financial concept, so it is always best to seek advice from a qualified independent equity release adviser. But before you do that, let’s look at the many convenient tools that could help you negotiate your way around the world of equity release schemes.

There are two main types of equity release plans: lifetime mortgages and home reversion plans. Different plans have different eligibility criteria and terms of lending. An equity release eligibility calculator is an application that, based on the information you provide, can quickly work out whether you are eligible to apply for a certain equity release plan.

For instance, a lifetime mortgage eligibility calculator can help you understand if you are eligible to apply for a lifetime mortgage, and if so, the maximum amount you could potentially release from your home. Eligibility for a lifetime mortgage is based on the applicant’s age and property value. The longer the term of the loan, the more the value would need to be. The shorter the expected term, the lower the value of the property can be. Therefore, in general, the younger the applicant, the higher the property value will need to be.

Who offers an equity release eligibility calculator?

Let’s look at the Aviva lifetime mortgage as an example. The minimum age to apply for this is 55 years, and the minimum property valuation is £75,000. Aviva’s lifetime mortgage eligibility calculator requires the user to enter their age, the value of the property, whether it is a single or joint application, certain details about the property, and whether you want to set any percentage of the equity as an inheritance.

Based on these details the eligibility calculator can tell you not only if you are eligible to apply for this lifetime mortgage but it also works as an equity release calculator and can tell you the maximum amount you could release through a lifetime mortgage. An equity release eligibility calculator is therefore simply a quick and convenient way to find out if you qualify to apply for a certain equity release scheme, and if so, how much you could potentially release.

Another equity release eligibility calculator is offered by another of the prominent equity release companies – Hodge Lifetime. They provide an equity release eligibility calculation to provide information on whether they could qualify for any of the Hodge Lifetime flexible lifetime mortgage products. Additionally, the calculator will provide not only the amount one can borrow, but also what the future balance is likely to be. This is ideal if you wish to see the effect the compounding yearly interest will have on your inheritance when the house is eventually sold.

For a free check to establish eligibility for any of the current range of equity release schemes from the whole of the market, call Freephone 0800 471 4796.

What Are Your Top Key Retirement Solutions?

The Top 18 Equity Release Key Retirement Solutions

As people live for longer and the cost of living increases, it is becoming more and more common for retirees to have financial difficulties during old age. However, a lot of these issues actually arose many years prior to this event, blatantly due to lack of financial planning prior to retirement.

As such, financial planning during retirement has become more important than ever before as managing on a limited budget, fault or no fault of one’s own is a harsh reality for many baby boomers. Therefore, an increasing number of people are looking for flexible ways to get the best value from their existing financial assets in order to address this retirement issue.

The rising popularity of equity release schemes illustrate how much of a growing problem financial insecurity is for many people in retirement. These type of home equity loans offer exactly this type of key retirement solutions many people seek as they usually have no effect on their monthly outgoings.

Let’s look at some of the most significant facts surrounding an equity release mortgage:

Equity release plans allow you to release some of the equity built into your home as usable cash. Both home reversion & lifetime mortgages allow you to do this without the need to sell the house or move out. So, even as you use some of the value of your property, you can continue to live in the house until the end of life, or until you move into a long-term care home
There are two main types of equity release plans – lifetime mortgages and home reversion plans. Lifetime mortgages are like regular mortgages, but only available to people over the age of 55, and have no fixed term. They allow you to release a lump sum of equity from your property which even then remains 100% in your own name. There are usually no monthly payments and the interest charged is added to loan & compounds on a monthly or annual basis. This differs from a home reversion plan where you actually sell a percentage of the property to the reversion provider. In return they provide a tax-free lump sum & a lifetime tenancy agreement is made. Both mortgages will then run on until the end of life, or until you move into care. Most lenders provide a window of 12 months to then sell the property so that the equity release mortgage can be paid off.
A home equity loan calculator can be useful to find out how much equity will be built into your home after a certain period of time. A home equity loan calculator can be useful in a variety of scenarios and is available on a number of financial, comparison and advice websites. A home equity loan calculator is not the same as an equity release calculator and is designed to give you a slightly different information calculus.
A home equity calculator will need some basic information about your property, including the current value of the property, its location, and the yearly rise and fall in the property, in order to work out the equity built into your home. A home equity calculator is therefore a way to calculate simply the amount of equity expected to be built into your home over a certain period of time.
However, an online equity release calculator is a different tool in that it can calculate how much equity one could potentially release from their property. An online equity release calculator UK therefore needs to work out the maximum amount an equity release mortgage provider could potentially afford to lend, based on the expected term of the loan, and the value of your home.
A free equity release calculator is therefore likely to require some basic information about you and your property in order to provide such a calculation. This includes, the age of the youngest enquirer and the current valuation of the property. The free equity release calculator can use this information and based on its database of equity release plans available, can give you a fairly good idea of the maximum release available to you.
An equity release calculator is an application designed specifically to calculate maximum potential release of equity, but there are many other financial tools designed to calculate different things. For instance, there are mortgage repayment calculators that, based on the loan amount, the rate of interest, and term of the loan can calculate how much your payments will be.
There is also a general lifetime mortgage calculator based on the age and income of the enquirer which can work out how much they could potentially borrow. Newer calculus allows some more advanced equity release brokerage’s to offer the interest only mortgage calculator which requires slightly more information such as income details, and details of any adverse credit, in order to ascertain eligibility.
A lifetime mortgage calculator is therefore just one of the many calculation tools available today within the mortgage sector. Depending on what type of application you are using, you may be needed to enter different information relating to your age, health and property, which is relevant to that particular calculation.
Home equity loans provide one of the key retirement solutions to happiness in retirement. There are different borrowing allowances from all the equity release companies, therefore always consult a home loans specialist who can advise on the many forms of home equity mortgages available.
Home reversion equity release plans involve selling a proportion of your home to the equity release lender. There are no monthly repayments with home reversion plans, and the entire amount is recovered when the house is sold, when the proportional share of the equity goes to the lender.
All equity release plans today come with a no negative equity guarantee, which means that your beneficiaries never have to pay anything to the lender even if the equity release loan gets bigger than the property value. This no negative equity guarantee is provided free of charge by the equity release companies, however it is costed into the overall costs and charges of the plan. Should the guarantee not be provided however, the interest rates would be lower on equity release schemes. Therefore any implication of it being free is not entirely true.
Equity release plans are regulated by the FCA (Financial Conduct Authority) and the Equity Release Council (ERC) is the industry trade body that represents everyone that works in the sector, including qualified advisers, providers, lawyers, solicitors etc. Membership of the FCA is mandatory as they provide the licence upon which advisers are able to provide equity release advice. However, membership of the Equity Release Council is not mandatory for advisers or solicitors, however it is for the mortgage providers who offer lifetime mortgage & home reversion products.
Recent research has shown that over 80% of the country’s wealth belongs to people over the age of 60, with over £1 trillion in untapped equity. It also shows that many homeowners over the age of 60 have cash flow problems, and are in fact unable to meet their daily costs. The simple equation for their key retirement solutions lies in the equity tied up in their home. Equity release schemes therefore provides one type of solution, however many such as downsizing property still remain & consequently should always be considered.
According to a recent study by the leading charity Age UK, the two most common ways that people were using their released equity were – home repair or maintenance projects at 46% and paying off existing debts at 35%. Following this statistic come the other lesser reasons to release equity in retirement. These would include holidays, new car, caravan, holiday home, financial assistance for the children, long-term care costs or to create an emergency fund in the bank.
Equity release plans have become increasingly popular after the Financial Services Authority (now FCA) started regulating the equity release sector. This initially started with the regulation of lifetime mortgages in 2004, which later then incorporated home reversion plans from April 2007. All advisers practicing in equity release must have the appropriate qualifications either through the CII (The Chartered Insurance Institute) or the IFS (Institute of Financial Services).
There are a number of independent and comparison websites that offer qualified advice about equity release products, and help users understand which equity release plan could suit them best. Search engines, such as Google, Bing or Yahoo will help you search for any related equity release information needed to enable you to conduct your own research. However, even if you decide which equity release scheme you require you would be unable to go direct to the lender as plans can only be completed by qualified advisers. This offers protection to the lenders to ensure the correct plan is taken out.
The latest type of new equity release mortgage to be invented is the enhanced lifetime mortgage where health can affect the maximum loan you can borrow. Therefore, equity release underwriters assess an enhanced lifetime mortgage as they do with an enhanced annuity plan where a health and lifestyle questionnaire is completed. Depending on the answers & severity of the health conditions, will determine the amount they will lend out. Simply put, the worse the state of health, the greater the maximum release.

There are many facts on equity release offering more concepts for key retirement solutions, as well as about how and why equity release plans have become so popular recently. They also talk about different types of equity release plans that are currently available. For more information visit independent advice websites or consult a qualified equity release adviser.

What is the Formula for a Home Reversion Plan Calculator?

What is the Formula for a Home Reversion Plan Calculation?

Equity release schemes have seen a massive surge in popularity in recent years with figures continuing to rise in 2013. Year to date figures for October shows there has been over £800 million of new equity release funds released, and is set to reach an all-time high of possibly £1 billion by year-end.

This will be a landmark for the equity release industry after years of care in building its reputation through regulation, financial advice and more innovation in product design from the equity release companies themselves. The main growth area in the types of equity release schemes available has been in the field of lifetime mortgage schemes market. Nevertheless, it is the home reversion plans the London equity release mortgage market has to thank. For this is how back in the 1960’s when the former property equity release schemes were invented.

Why the decline in home reversion sales?

Home reversion schemes in comparison to lifetime mortgages have not seen much change in design or structure since their inception. In fact less than 1% of all equity release schemes written in Q3 of 2013 were a home reversion plan! So what is the reason for their significant decline? One word – Flexibility.

Within the equity release sector, there have been products such as home reversion plans that have lost out to other more flexible and secure options that are now becoming available. Flexible terms of lending such as new interest only lifetime mortgages and the enhanced lifetime mortgage UK are now more popular & freely available. Where a release of equity is necessary and advice is required more than 9 times out of 10 advisers will favour lifetime mortgages & for this reason they have effectively made home reversion plans near obsolete.

After all, demand creates supply, and there seems to be little demand for home reversion schemes on the whole. This is perhaps the reason why several companies that used to have a home reversion calculator have now withdrawn the application from their website.

Where can I find a home reversion calculator?

Old home reversion companies of the past had tools such as a home reversion plan calculator which could help people over the age of 65 assess the maximum they could borrow. Two such companies were Retirement Plus of which they provided the data for companies like Equity Release Supermarket to use on their own website.

Alas when Retirement Plus withdrew their hybrid home reversion/lifetime mortgage plan these calculators were pulled. Unfortunately this left a void in the market. More recently Bridgewater have provided a home reversion calculator for advisers to use, but is also accessible to the general public to use with the right-click!

There are some specific reasons for this decline in popularity. The first reason probably is that home reversion involves selling a part of your home, and not many people are comfortable with that thought. The main advantage of home reversion was that it involved no repayment over the loan term; however, with the arrival of flexible new interest only lifetime mortgages home reversion no longer offers something unique.

Advantages and disadvantages of home reversion plans UK

Another reason is perhaps that home reversion involves this selling a part of house at a highly discounted price, so that you not only lose out on the market value when you start the plan, but also do not benefit from any property price rise on that percentage of the equity when the house is finally sold.

Another significant drawback of home reversion plans is that in case you die early and the plan ends, you potentially lose a valuable chunk of your property in exchange for a highly subsidised price. This can be a big risk for your beneficiaries. But with certain new lifetime mortgages, you can get guaranteed inheritance protection in case of early closure, which is a significant improvement.

Home reversion plans are still very much available however, so there are clearly some advantages to these schemes and they suit some clients. They do offer a large lump sum release, there are no monthly repayments to be made, and by selling only a small portion of the home, you can still protect any inheritance you may wish to leave behind. However, enhanced lifetime mortgages available today can surpass the release allowed by home reversion schemes, and still allow you to retain full ownership of your home.

Home reversion summarised

Companies such as Retirement Plus, Aviva, Home and Capital, and Partnership did offer enhanced home reversion plans, which seem to have now been withdrawn. As stated historically, several reversion companies had home reversion calculators on their websites, but with the decline in demand for these schemes and the availability of new more flexible lifetime mortgages, it is difficult to find a home reversion plan calculator today.

However, the home reversion plan in the UK is not dead & buried and still must have a part to play in the overall equity release advice service offered by any qualified adviser.

You can calculator standard results on the best home reversion deals by visiting specialist equity release broker websites such as – www.homereversion.org

How Does Age Affect the Release of Equity Calculation?

Equity release is a way to withdraw some of the cash value tied up into your property. While traditionally the only path for a release of equity would be to sell the property, equity release offers a more flexible way to continue living in your home while accessing the cash tied up into the property. This can only be facilitated by receiving advice from a qualified equity release consultant, in conjunction with an equity release provider themselves such as Aviva, Just Retirement, Hodge Lifetime & many more of these niche mortgage lenders.

First an introduction to the types of equity release

There are two types of equity release products – lifetime mortgages and home reversion plans. While lifetime mortgages are loans taken against the value of the property, home reversion involves notionally selling a portion of the property with the lender recovering the proportional value when the house is sold. In all equity release schemes, the lender recovers the money from the sale of property, which happens only after you have died or moved into a care home.

Whether it is a lifetime mortgage or home reversion, the release of equity is basically money that you receive from the lender, and which the lender can recover after the plan ends. How much the lender can afford to lend, at what rate, and whether they can afford to lend at all, depends on the value of the property, the amount of equity that needs to be released, and the expected term of the loan; namely life expectancy.

The feasibility and exact terms of an equity release plan therefore depend on different relevant factors, some of which determine the expected term of the loan or plan. Since most equity release products have no fixed term, and go on until the end of life, or until you move out and into permanent care, it is the health and age of the client that determines the expected term of the equity release plan. The age of the applicant is therefore an important factor that significantly affects the release of equity.

Relationship between age & release size

Typically, the longer the term of the loan, the more the risks are for the lender in that the loan will compound over a longer duration. As there are many variables built into life expectancy, the lender does take the risk that: –

House prices may remain static, even fall over the term of the mortgage
The equity release loan interest will accrue for longer than the average life expectancy
The health of the individual will be good, thus leading to prolonged longevity
Condition of the house may deteriorate, leading to un-saleability

All these factors place a greater strain on the insurance policy that equity release lenders have on these loans – the no negative equity guarantee. They actuarially calculate the average life expectancy and then pitch their loan-to-values in accordance with this data. They will win on some cases, but lose on others & this is all factored into the no negative equity guarantee insurance policy. The danger for lenders in hoping they do not need to use this insurance policy, lie with the outside factors mentioned above that could seriously affect these chttp://www.equityreleasecalculator.net/wp-admin/post.php?post=46&action=editalculations.

Therefore the younger the applicant, the higher the risks, and the older the applicant, the fewer the risks involved for the equity release provider. This is why the older one is, the bigger the release of equity can be offered by these lenders. Hence, when considering a release of equity, do your sums first and always obtain a Key Facts Illustration from your equity release adviser. This will detail the exact amount, year-on-year, how much the balance will reach in the future. A useful piece of data for considering what the final balance may be, albeit guessing the length of the term can be an unnerving experience!

Loan-to-value summary

The minimum age for most lifetime mortgage products is 55 years, and generally speaking, the further away you are from this age, the more you can borrow. In fact, if you are aged 55, currently the maximum lifetime mortgage scheme will allow is 20.5%. This will steadily rise as one gets older and as a rule of thumb will be 1% each year you get older. Most equity release companies allow maximum release of equity only for older clients upto approx. age 90+ with an overall maximum release from any lender of 55%.

However, home reversion plans do not commence until age 65, some 10 years later. The calculation for the size of a home reversion release is based again on age, but also the sex of the individual(s). The reversion provider will receive a proportion of the house value in exchange for a tax-free cash lump sum to the homeowner.

The difference between the home reversion scheme and lifetime mortgage is that with a home reversion you can sell 100% of the value of the property, the converse relationship exists with a lifetime mortgage. However, even selling 100% of the property doesn’t mean you receive 100% of its value. This will usually be half of the equivalent percentage sold. Thus if you sold 100%, you are likely to receive around 50% of the value. Again, like a lifetime mortgage, the older you are, the greater the percentage over & above this 50% figure you will receive.

All these examples based on age, property value & health can be inputted into a good equity release calculator to provide the results you require in order to complete your equity release research.

If unsure call 0800 471 4796 to speak to a qualified independent equity release adviser who can provide guidance on the best schemes available.

How Much of a Payout Can You Expect With Equity Release?

How Much of a Payout Can You Expect With an Equity Release Plan?

The most important question that will come to mind, whenever you’re considering equity release, is exactly how much of a payout you can expect to receive if you commit to such a scheme? The simple answer to this question is by no means cut and dried and this article is intended to help you recognise some of the factors that will eventually dictate the amount of money that you can expect to receive. Ultimately, it will be an equity release calculator that provides the answer to this question. However, in order to obtain a calculation several factors need to be ascertained.

Qualification criteria for equity release

Of course, the first fundamental factor that will be taken into consideration for equity release will be your age. With equity release schemes, the minimum age is 55 years; however, there are some types of plans such as home reversion plans, where the age may actually be set at 65. The older you are when you choose to take out an equity release plan, the more money you can expect to release through your property. This makes sense as it means that the lenders will be able to take control of your property more quickly in the event of your death or move into permanent health care.

The next important criteria that will be taken into account is the actual value of your property. Obviously, the higher the value, the more money could potentially be released to you in terms of a home equity release scheme. There are various websites that provide upto date sales in the locality which offers an insight into current market valuations. However, bear in mind that the valuation is conducted by an independent firm of surveyors. They will assess the market value based on a relatively quick sale and use similar properties that have sold recently to gauge the price point.

If you are looking to make a joint application for equity release, the lender will tend to focus primarily on the youngest applicant and this is likely to mean a lower payout if there is a large age differential. This is because this youngest applicant would be expected to remain within the property for longer, due to their extended life expectancy.

Also, it is imperative that both parties are over the age of 55, otherwise lenders will not accept any application if the property is in joint names. However, if this is your situation there is still a way of taking equity release in one parties name, if they are willing to come off the deeds. This is a specialist area of advice and one that an experienced equity release adviser can discuss & outline the pros and cons of taking this course of action. Please call someone such as Equity Release Supermarket whom have appropriate later life advisers on this legality on 0800 678 5159.

How much does an equity release calculation cost?

There are numerous sites on the internet which offer equity release calculators and these are an ideal way of ascertaining the maximum payout that would be available to you through an equity release plan. These are freely available without any initial commitment on your part and are a great way of starting to learn about exactly what equity release schemes may be able to offer you. Never pay to use one, as free equity release calculators are widely available on the internet.

Calculation examples

The most important question posed by people who are looking at equity release plans is the maximum release possible. With schemes that start at age 55, Aviva usually provide the maximum lump sum which is 20.5% of the property value for a single borrower. Thus on a property value of £250,000 a single 55-year-old could release upto £51,250. This amount rises steadily, usually at the rate of 1% for each year one gets older, so at age 85 the maximum release on standard rates by then is 52% of the property value equating to £130,000 in this example.

Enhanced lifetime mortgage benefits

However, a recent innovation in this area of maximum releases has been the introduction of the enhanced lifetime mortgage plan. Based on health & lifestyle questionnaires, the more serious your health situation means the greater the size of the lump sum offered. Again, this is down to life expectancy which for ailments such as heart trouble, high blood pressure & diabetes can affect matters.

The effect of ill-health can make a significant difference if one is looking for the absolute maximum release of equity, possibly for mortgage repayment or debt consolidation purposes. An impaired life 55-year-old with a property value of £250,000 could now release upto £85,250 – an extra £34,000!

To establish whether you qualify for an enhanced lifetime mortgage contact equity release mortgage specialists such as EquityReleaseCalculator by calling Freephone 0800 471 4796.