Your Equity Release Options: Costs and Benefits
Do you need to know the cost of an equity release? Equity release costs are a form of home finance for people aged 55 and over who have a property they want to sell. Equity releases allow homeowners to access funds from their property without having to sell it. If you think this is something that could work for you, you need to know about equity release cost in the UK.
Does it cost a lot to get an equity release? How much does it depend on the size of your property, age and income bracket? The answer is that you will need to talk with a mortgage broker about this. Your lender may be able to give you some idea as well. They might have forms or calculators available so you can make reasonable estimations for what equity release would look like in real terms.
Some other factors that contribute to the equity release cost are whether you want to include your spouse, the mortgage amount on the property and how much is wanted as a lump sum.
Equity releases in UK come with one of four options: full release option, partial release option, cash back or annuity payout. The last three have different levels of monthly payments attached to them so it’s important that you know what these will be before deciding which route might better suit your situation.
You can also choose between Equity Release schemes such as Lifetime Homeownership Scheme (LTS) or Help-to-Buy: Shared Ownership scheme for those who need more assistance when purchasing a home. If this sounds like something that could work for you then talk to an advisor about which type might be most appropriate.