Tag Archives: Equity Release Supermarket

Which is the Best Equity Release Plan?

When it comes to deciding which is the best equity release plan that is suitable, it can be difficult without the required knowledge. It is always best to seek independent financial advice to find out which plan is the best for you. When choosing a plan, consider if you are looking for a low interest rate, the ability to make partial repayments, a guaranteed inheritance for your children, or just the maximum lump sum.

One Company Offering Comparisons
Equity Release Supermarket is an online company that will show you which equity release plans to choose from. They provide a comparison table of plans and products that will help make your search easier. The plans include drawdown, home reversion, lump sum, and interest only mortgages. In addition, they can provide an advisory service and have the facility to provide an appointment with a local adviser, either in the comfort of your own home or over the telephone, dependent upon which ever suits your requirements best.

Exploring Details of Lifetime Mortgages and Home Reversion
A drawdown equity release is similar to a lump sum lifetime mortgage, except that you only need to take only the amount of money that you will need. That way you do not eliminate all of the equity in your home at one time. A lifetime mortgage allows you to receive the maximum amount that your home is worth at one time. A home reversion allows you to borrow any amount from the equity of your home by selling a proportion of the house value. For instance, by borrowing half you will allow your children to inherit a piece of the property when you pass away.

An Alternative Lifetime Mortgage
The only equity release plan that you will need to make monthly payments while living in the home is an interest only lifetime mortgage. This type of plan is good to get if you want your children to have as much equity as possible when you pass away. One of the few companies to offer such a product is Stonehaven, who restrict borrowers to a minimum age of 55. Most other interest only lifetime mortgage lenders such as Halifax, who operated their Halifax Retirement Home Plan, have now withdrawn from the market.

How Equity Release Works In Principle
With most of the equity release plans you do not need to make monthly payments. In fact, you can live in your home for free until you pass away or go into a nursing home. The interest that accumulates on the loan for the remainder of its term and will eventually be repaid once you pass away or go in a nursing home.

You decide which product is correct for you, whether you want to make a monthly interest payment or no payment at all. The benefit is that you get the money you require now to make your retirement easier. The disadvantage is the amount of inheritance you can leave behind. This is why you should be aware of how lifetime mortgages and home reversions work.

First of all the money is tax free and can be used at your discretion for home improvements, repairs, or even holidays. Under home reversion you have already sold a portion of your home so you have less worry of paying something back and a lifetime tenancy agreement. For many this is uncomfortable, but it affords that inheritance as mentioned. You also have to be 65 to start this process, whereas lifetime mortgages can start from as early as 55.

Speaking with Family
An independent financial adviser is great, but you also need to be wary about what your family will think. As it is their inheritance and they may be able to help you keep the home in the family, it is important to get their opinion. They may see something you missed or simply help you sign a better contract.

For example, with lifetime mortgages there is a clause called a ‘no negative equity guarantee’ agreement in which the company cannot try to obtain any more than the house is worth upon your death or decision to sell. It protects you if the house loses value.

A homeowner may have an idea on which equity release plan they want, but it is still best to contact an independent financial adviser, to make sure you are making the right choice. One plan may be better for you than the others. The independent adviser will ask you a series of questions to help you choose the best plan. So, if you have any questions, ringing Equity Release Supermarket on 0800 678 5159 maybe your best option.

Divider

 

Where to Compare Equity Release Pros and Cons Before Completing Any Calculations

Compare the Equity Release Pros and Cons Before Completing Any Calculations

Over a decade ago, releasing equity from your home was virtually unheard of. Today, equity release plans are flourishing, with more and more people choosing to turn to the equity in their homes for relative financial security during retirement.

Equity release is not suitable for everyone, but it does provide a flexible solution for many, and the growing popularity of equity release plans are proof of this. Many new and more flexible products have become available in recent times, and the fact is that the equity release sector has never looked more vibrant.

But the world of equity release schemes still remains confusing for many and it is difficult to negotiate your way around so many different plans; all with their own terms of lending and eligibility criteria. How then does one find the equity release plan that best suits their individual needs and circumstances? And how does one compare different equity release plans to find the best equity release deals?

The answer lies in speaking to a qualified equity release expert who can guide you through the different options and help you understand the equity release pros and cons of each alternative in the context of your individual needs. But firstly, a simple way to sift through the various options is to use an impartial equity release schemes calculator to find out the maximum amount you could raise through different equity release providers.

Equity release pros and cons

These equity release pros and cons are paramount to the decision-making process as they gauge one’s attitude to risk which your equity release adviser will use towards his recommendation. They will not only outline all that is good about equity release schemes, but advise the pitfalls of equity release schemes also. Knowing both sides of the story is essential moving forward as this could be classed as the biggest financial decision of your life, your first ever mortgage aside.

It is important to find a comparison site that offers objective and impartial advice, and has an up-to-date database of providers and plans. This way you can be sure that you are not losing out on something better and are getting the fairest picture of what could be available to you. Check whether they list all the equity release pros & cons for you to easily understand before even seeing or paying for equity release advice.

Independent advice companies like EquityRelease2go.com have pioneered the use of equity release calculators that can quickly work out the maximum release based on some simple facts about your case, including your age and property valuation. These companies continue to provide an impartial and up-to-date service to users who are looking to find the most suitable home equity release scheme.

Not all free equity release calculators are truly free and fair. Some calculators only show a fraction of the picture; while some others use personal information for unrequested marketing from paying partners. While many providers and even comparison sites use equity release schemes calculators as a ploy to extract information from enquirers, there are also companies that seek to provide genuinely unbiased information to customers based on results from all reputable equity release providers.

In summary, it’s vitally important to do your research before committing to anything, seek the equity release services of a reputable independent company who offer a nationwide advisory service such as Equity Release Supermarket whose testimonials & client feedback seem to justify this.

 

How Impartial is the Saga Equity Release Calculator?

How Impartial is the Saga Equity Release Calculator?

There was a time when anyone wishing to find out the maximum equity release they could take from their property had to make an appointment with a particular provider and ask them directly. This means going to great lengths just to find out a simple answer. Today, with the development and access to free equity release calculators, finding out how much you could potentially release is a quick and simple process.

When equity release calculators were first introduced, they were available only on select websites such as EquityReleaseSupermarket.co.uk. Today however, they are available everywhere! Most providers have a calculator on their website, and various independent advice companies also offer equity release calculators to enquirers and potential customers.

To understand whether the Saga equity release calculator is impartial, it is important to understand how an impartial calculator actually works. An equity release calculator takes into account details about your personal information and uses this to work out the maximum equity release possible. Now the best equity release calculators will provide calculations from an independent point of view, thus gleaning data from the whole of the equity release market. As such, all the calculator needs is the enquirer’s age, the current property valuation and access to every equity release provider the market has available.

Negative aspects of equity release calculators

Now, let’s begin to understand the pitfalls of equity release calculators, and how they are sometimes misused. Firstly, some companies use equity release calculators to data mine for personal information including names, email addresses etc. which are then used for unrequested marketing purposes. Sometimes companies could also share personal information obtained from users with other companies and third parties. This is not stringent with the data protection rules as users must be made aware of how their information is going to be used.

Another way to misinform users is to provide only a partial picture of what could be available. If an equity release calculator does not have an up-to-date and full picture of different options available on the market, it will fail to provide objective results, and this is what can happen with some equity release calculators on the market. This may not necessarily be done on purpose, the equity release market is constantly evolving & unless the data behind these calculators is maintained & kept upto date, then false reading may be provided.

Saga equity release calculator

Saga offer an equity release calculator on their website which requires much information to be entered – including name, date of birth, email address, contact details, and home address. It states that the equity release calculator it offers is provided by an external company – Just Retirement Solutions Ltd., which pays Saga an introductory fee or commission if customers take out a plan.

Just Retirement Solutions themselves offer advice only from a panel of equity release companies. They cannot therefore offer the comprehensiveness of classing themselves as ‘independent’ equity release brokers unlike companies such as Key Retirement Solutions, Age Partnership and Equity Release Supermarket, Bower & Responsible Equity Release.

Saga, via Just Retirement Solutions provides recommendations with access to a range of selected providers – such as Aviva, LV= and its sister company Just Retirement! In fact the majority of Just Retirement Solutions business is written through Just Retirement; could this advice therefore be classed as ‘impartial’?

With all of the above information surrounding Saga’s equity release calculator taken into consideration – I will leave you to conclude as to whether or not theirs is impartial or not!

 

How Does the Aviva Equity Release Calculator Compare to Independent Equity Release Calculations?

How Does the Aviva Equity Release Calculator Compare to Independent Equity Release Calculations?

An equity release calculator is meant to calculate the maximum release equity that you could potentially release from your property. While only a few companies offered an equity release calculator until a few years ago, today, most independent advice companies, as well as providers, have followed suit and offer equity release calculators on their respective websites. So when using an equity release calculator, is it better to go directly to a provider, or use an independent calculator from the whole of the equity release market?

The best way to get the most out of an application such as an equity release calculator is to have a calculator that provides a free and simple way to calculate maximum potential release, and gives up-to-date and impartial results. However, specific equity release providers such as Aviva are bound to have only their own products on the database of their calculator, and can therefore show a very limited picture of what could be available to you.

The point of an equity release calculator is to get a fair idea of the most you could get and this is in essence a way to shop around and find the highest possibility in terms of equity release. Therefore going to only one single provider for this seems to beat the entire purpose of the exercise! It is important to use an independent equity release calculator that can sift through its database and give you up-to-date and impartial results.

The cons of using Aviva’s equity release calculator

As an example, consider that you live in a flat and use the Aviva equity release calculator. Simply on knowing that you live in a flat, the Aviva will immediately make a deduction of 15% in the valuation before making a calculation, and use only 85% of the entire valuation. An independent equity release calculator will never make such a deduction at the start of the calculation. It will address this issue by using the maximum loan to value figure from the entire equity release market. Not all lenders use this ruling and therefore the importance of independence shines through.

Another example of the negative aspect of using the Aviva equity release calculator would be the locality of the property. Using modern sourcing systems including Environment Agency data flood check risks, Aviva will accept or decline a property on this basis. Only a couple of other equity release providers will use this data in accepting or declining equity release applications. Therefore, the majority of lenders that do not use these criteria maybe could be the best route for an equity release calculation. Again, evidently independence wins the day over tied equity release providers.

An independent equity release calculator has the advantage of having access to all the information that is available, as opposed to concentrating only on one single provider. By using an independent equity release calculator, you could also potentially get a much better deal. For instance an independent equity release adviser will have Aviva rates starting from 5.62%, while Aviva’s direct rate is nearer 6%!

Aviva direct closed its salesforce

In fact Aviva has price differentials for those people who contact them directly. Should you contact Aviva regarding making an equity release enquiry, you cannot get assistance from any of their direct sales force – it has been closed down on 1st July 2013. Aviva now will farm you out to three separate equity release brokers, but not with the benefit of the independents interest rate, but a higher rate than other specialist equity release brokerages such as Equity Release Supermarket get. This effectively means that the long-term cost of seeking advice from Aviva Direct now is higher than going to one of the independent equity release brokerages.

Another significant benefit of using an independent equity release calculator is that you could have access to attractive deals and offers, such as up to £1000 cash-back deals, as well as free valuations which Aviva directly themselves do not offer currently. So not only will there be a lower interest rate, but going to someone like Equity Release Supermarket will save on your initial set up costs.

In summary, Aviva, although are one of the better equity release companies, going directly to Aviva maybe does not offer the best terms. Going to an independent resource could provide you with exactly the same product which is the Aviva Flexi Plan, albeit on preferential terms by using an independent equity release calculator and adviser.

 

Will a Free Equity Release Calculator be Truly Free?

Will a Free Equity Release Calculator be Truly Free?

Equity release schemes have gained much popularity in recent years, and this demand has fuelled the arrival of several new flexible and secure schemes on the market. This surge in demand and popularity can be illustrated by a simple fact – until a few years ago, clients would have had to visit the equity release provider just to find out the maximum amount they could release.

Then, leading comparison websites like Equity Release Supermarket started offering equity release calculators on their website that allows users to quickly find out the lifetime mortgage and enhanced lifetime mortgage maximum availability; and now more websites offer this nifty little application to the potential customers.

What’s the point?

The point of an equity release calculator is to have a simple way for users to get a rough idea of the maximum amount they can release with a particular provider, or through a particular equity release specialist. By having a free and transparent system, not only do users get a fair idea, but providers and specialists also gain from being able to show users how much money they could potentially raise by doing business with them. So providing a truly free, fair and honest service by way of an equity release calculator benefits all parties.

The equity release calculator is always marketed as a free, impartial and very convenient tool. As such, one simply needs to enter some basic information and the calculator shows you the maximums you could release. But while many reputable companies do provide a transparent and objective service, are all equity release calculators equally transparent? For one, what do companies use your personal data for?

The fact is that some lenders and equity release providers misuse the equity release calculator and use it to gain valuable personal data from unsuspecting users. Your personal details are then used for unsolicited marketing and advertising! While this is a commonly used marketing strategy, it is imperative that these motives be made clear to the public, and not many companies do this.

Thus, equity release calculators are potentially a very convenient, objective and free way to get an approximate idea of how equity release could work for you; but some companies misuse this application for data mining and luring potential customers into their marketing ploy. However, there are reputable companies like Lifetime Mortgages.org.uk that do offer a fair, objective and truly free equity release calculator service.

Multi-functional calculators

However, Compare Equity Release.com also offer two calculators, but uniquely provide their customers with 3 equity release solutions in their answers. Firstly, they offer the standard maximum equity release based on a healthy person and at the same time offer the maximum enhanced lifetime mortgage maximum release aswell. This helps people with adverse health conditions to see the ‘benefit’ in equity release terms that impaired health can offer them by way of an extra tax-free lump sum.

Lastly, Compare Equity Release.com will also offer the usage of their interest only lifetime mortgage calculator. So if you are over age 55 and looking to find out how much an interest only retirement mortgage from the likes of Stonehaven, more2life and now Hodge Retirement Mortgage Plan can offer then visit their website at www.compareequityrelease.com or call them on 0800 678 5169.

 

What About Life Before the Equity Release Calculator?

What about life before the Equity Release Calculator?

The growing popularity of equity release schemes has driven a sea of change in the world of retirement mortgages. For one, increases in demand from customers has led to more flexible, innovative and secure equity release solutions being developed all the time. As more and more players enter the market, there has also been an increase in the number of comparison and information websites whom themselves are innovating to provide new tools to help in conducting equity release research.

One of these latest tools is the equity release calculator which was once a novel tool offered only by pioneering websites like Equity Release Supermarket. Today however, the equity release calculator has become a common sight and very common across the marketplace.

What is an equity release calculator?

An equity release calculator is a highly useful application as it allows users to get a fairly good idea of how much you can borrow from the whole of the equity release market. Useful as it is, though, it is a fairly recent development. Prior to the availability of this simple tool, the only way for potential clients to find out the maximum release available on any particular plan would be to contact the equity release provider either by phone, or in person!

This seemed like an awfully tedious way to find out something that could be calculated rather quickly based on a few simple facts. Companies like Equity Release Supermarket therefore invested in a simple application that, once users entered certain basic facts such as age and property value, could calculate maximum borrowing based on a simple algorithm used by equity release companies to calculate borrowing. This application provided the client with the equity release calculation upon which they could base their spending plans.

Today, numerous websites have an equity release calculator. While this is a good thing that enables users to quickly find out maximum borrowing, equity release calculators are now also being used as a form of marketing or advertising to attract potential customers by only promoting certain equity release plans over others. The point of an equity release calculator is to provide a functional and entirely unbiased tool for users to work out the maximum average amount they could release. And the role of equity release comparison websites is to provide impartial information and objective advice about the different options available.

Using an equity release calculator as a marketing ploy seems not only to compromise the ethics behind providing impartial advice and information on websites, but also undermines the entire point of offering such a calculation application to users.

Nevertheless, the fact is that the equity release calculator offered by reputable comparison sites has provided a hassle free and quick way for users to calculate maximum borrowing from an equity release plan. This can form part of the initial equity release research into lifetime mortgage schemes and act as an in-road into preliminary discussions with your lifetime mortgage adviser.

For further information on how to calculate the maximum equity release lump sum call the Equity Release Supermarket lifetime mortgage department on Freephone 0800 678 5159.

 

Where Do I Find an Enhanced Equity Release Calculator UK?

Does an Enhanced Lifetime Mortgage Calculator UK Exist?

So what do equity release calculators do, and is there such a thing as an enhanced lifetime mortgage calculator UK?

Until a few years ago, a lifetime mortgage calculator was quite a novel application, only offered by a few select websites that allowed users to quickly calculate how much their equity release plan would endear them with as a tax-free cash lump sum. Today of course, there is no shortage of lifetime mortgage calculators on the internet, as most mortgage comparison and advice websites offer this useful application to users.

The next stage in the evolution of lifetime mortgage calculator was the introduction of the enhanced lifetime mortgage calculator on the internet. Of the four equity release companies that offer enhanced lifetime mortgages, (Aviva, Just Retirement, more2life & Partnership) an accurate enhanced calculator will pull the maximum release from each of these schemes & display these results.

An enhanced lifetime mortgage plan is basically a type of loan that allows you to access the equity tied up into your home, but takes your state of health into account. The mortgage is repaid when the property is sold, when the term of the plan ends, which is usually after you die or have moved into permanent care. At that stage, your beneficiaries will usually have 12 months to repay the lender, which invariably will come from the sale proceeds of the property.

There are different types of enhanced lifetime mortgage schemes UK, each with different lending and repayment criteria. Add to this the fact that each variable, including the applicant’s age, the value of the property, the amount needed to be released etc. determines how the loan is underwritten. The overriding factor with regards to the maximum enhanced release being possible is the severity of the health records. Basically, by completing a health & lifestyle questionnaire and answering the questions therein, will determine the effect it will have on the maximum equity release.

An enhanced lifetime mortgage calculator takes into account the type of equity release scheme, the lending terms of the particular provider, as well as the applicants’ variables such as age, property value, health and loan amount etc. to calculate how much the plan will cost.

An enhanced lifetime mortgage UK plan is different from a regular equity release scheme in that it has more generous terms of lending, based on certain special circumstances related to the life expectancy of the applicant. When it comes to a loan, the shorter the term of the loan, the lower is the risk for the lender. As such, in circumstances where the applicant has compromised health, a chronic illness, or a lifestyle that impinges on their life expectancy, lenders are able to lend at more generous terms.

In addition to offering the regular lifetime mortgage calculator, some equity release comparison websites also have the enhanced lifetime mortgage calculator. For instance, Equity Release Supermarket offers users the choice to get a quote for enhanced lifetime mortgage based on additional relevant information.

So why does an enhanced lifetime mortgage calculator UK need additional information? Because this is the information that it uses to project the expected term of the loan, which in turn determines the figures. The additional information is usually a simple health & lifestyle questionnaire with questions about your age, any serious illnesses, and any chronic health conditions you may suffer from.

The lifestyle questionnaire is used to find out whether any impairment one has will be acceptable to the lifetime mortgage companies to form the basis of any enhanced terms. These impairments or lifestyle choices that help qualify for the enhancements are as follows: –

  • You height, weight & for some lenders your body mass index (BMI)
  • Whether you smoke any form of tobacco e.g. 10 cigarettes per day for the last 10 years
  • Diagnosed with high blood pressure which needs medication
  • Entered hospital due to a heart attack, stroke or suffer from related illnesses such as angina
  • Struggle with diabetes requiring medication or even insulin
  • Diagnosed with cancer needing therapy (excludes certain skin related cancers)
  • Diagnosed with Parkinson’s disease or multiple sclerosis

Just retiring on the grounds of poor health can get you an enhancement or even the fact that you are taking prescription medication e.g. aspirin can help.

Therefore, similar to the underwriting of enhanced annuities, the equity release market has also embraced the more in-depth knowledge our insurance companies have in associating ill-health with financial products; equity release now being the latest.

But do not fear as there are websites that can help guide you to the relevant companies & tools you can employ that will provide you with the enhanced calculations to inform you of the difference any enhancement can make to the tax-free lump sum.

 

 

 

What are the Top 5 Equity Release Calculators?

Review of the Top 5 Equity Release Calculators

A good equity release calculator is one that is free, simple to use, transparent and offers impartial results. While there are numerous websites offering equity release calculators, only a good and truly objective calculator can help you get a fair idea of how much you could release. Here’s a list of the top 5 equity release calculators available today: –

1. Equity Release Supermarket – are one of the original independent equity release companies offering advice and guidance about the different equity release schemes available in the UK. In fact, this was one of the first websites to develop the basis of the equity release calculator for users to calculate the maximum release. The calculator itself is simple to use, well designed and gives quick and comprehensive results every time. Two results are published by this company, which is more than most. Equity Release Supermarket not only provides the standard maximum equity release, but also will provide the figures for an enhanced lifetime mortgage.

This means that if you have poor health you also receive a higher calculation figure which could be applicable. As always they state this is acts as a guide & should endeavour to contact their advisory service on 0800 678 5159 to obtain an accurate quotation. Equity Release Supermarket has an extensive database of providers and plans and its comparison tools let you search the entire equity release market to find the most suitable deal. Once you calculate the maximum release you are provided with the option of whether you wish to submit your details to receive further advice & ensure qualification for any of the lifetime mortgages available in the whole of the market.

Mark Gregory is their founder & can be contacted at mark@equityreleasesupermarket.co.uk


2. Compare Equity Release – CompareEquityRelease.com is one of the best comparison sites in the equity release sector, offering information and guidance about all the different equity release & home reversion products currently available in the market.

The website is easy to use, well designed, with a convenient equity release calculator app that lets you answer the most important question that anyone has while considering equity release – ‘how much can you borrow?’

Compare equity release is the only website that goes one step further than providing a standard & enhanced lifetime mortgage calculation. Not only has a free lifetime mortgage calculator, but also a free interest only lifetime mortgage calculator. It is one of the few websites that compares between all available equity release plans to come up with the maximum potential release for any given age. The style of the two calculators is modern & in keeping with today’s internet savvy silver surfers.

CompareEquityRelease.com can be contacted on Freephone 0800 678 5169 or by email at admin@compareequityrelease.com


3. Equity Release Calculator – EquityReleaseCalculator.net is an independent calculation website that provides useful information on all matters relative to an equity release calculator. Therefore, if you require further knowledge on how these calculators work, plus the pros and cons of an equity release calculator, then this site holds a mass of information on the subject.

The site also features many articles on the subject of how to release equity and what is equity release. So there is plenty of information abound on the calculating of the maximum equity release.


4. Equity Release2go – EquityRelease2go.com is a relatively new independent equity release website that offers a free equity release calculator. The website itself is simple to navigate and the calculator is easy to use if somewhat difficult to locate on the website. Additionally, EquityRelease2go.com have a separate section detailing the best equity release deals available including cashbacks, free valuations & reduced interest rates available to its customers.

Being a relatively new website, certain features are set to follow which given the message the site provides should be soon!

However, they can be contacted on 0800 321 3156 or by visiting their contact page here – http://www.equityrelease2go.com/contact


5. Aviva Equity Release – their equity release eligibility calculator performs many functions; qualifies your age, property value and property type. In addition you have the option of inputting an inheritance protection percentage which will affect the ultimate result.

This level of options can be afforded as the Aviva equity release calculator only works its calculations based on its own products which are the Lifestyle Flexible Option and the Aviva Lump Sum Max.

Therefore, the results shown are only relevant to Aviva’s own equity release plans & do not represent the whole of the market. If you are looking for the maximum equity release from the whole of the market there may be companies that offer larger releases of equity out there.

These are some of the most objective, impartial and easy to use equity release calculators. They are free and can offer an instant quote of the maximum release for your age and property valuation. The more established and reputable the company, the more reliable they are likely to be!

 

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.