Equity Release
The term ‘equity release’ is often mentioned but not everyone knows exactly what it means. In simple terms, if you own a property and don’t have a mortgage or any other type of loan secured on it, then the equity of the property belongs to you and you alone. In other words – the property is all yours and if you were to sell it you would be able to keep all the proceeds of that sale.
If you have a mortgage or another type of loan which is secured on your property, then the equity in the property is the amount you would be left with after the loans are paid off. For example, if you have a mortgage of £70,000 and you sell your house for £200,000, then you would have £130,000 profit. So in this case you have equity in your property to the value of £130,000.
Of course, unless a sale actually takes place the value of your property can only be estimated. That is why a valuation usually has to take place if you want to release any of the equity in your property – the valuation sets the price at which the property might be able to be sold.
So how can you release equity in your property without selling up?
Equity release schemes are often targeted at the elderly and offer a way of increasing income over a period of time, perhaps to ‘top up’ a dwindling pension or allow the home owner to take a few holidays or make a major purchase. But what happens if you want to release equity in your home and you are not of retirement age.
Is there any way of releasing the ‘locked up’ value, or equity, that you have in your home?
With Property Rescue with answer is ‘yes’. Property Rescue offer an equity release option that means you can raise money from the asset in which you live. You don’t need to be retired and you don’t have to have a property in tip top condition, or live in a desirable residential location. Furthermore, Property Rescue will pay the valuation and legal fees you incur during the transaction. This means that the price you are offered by Property Rescue for your home will be the price you actually get – without any deductions. Property Rescue make the process simple by making contact with your mortgage lender (if you have one) on your behalf and arranging to pay off your outstanding mortgage; they also instruct solicitors on your behalf who will take care of all the necessary legal documentation.
After the transaction Property Rescue will own your home but you can still live there as a tenant, paying a rent to Property Rescue which is fixed in advance. To find out more about equity release, contact Property Rescue for an informal discussion. All calls are in strict confidence with no obligation.
More Property Rescue services
Contact us on 0800 1313 999, email info@propertyrescue.co.uk or complete an online enquiry form. Property Rescue is a UK Based Organisation dealing with only UK Properties.
