Q. What is equity release?
A. Equity release is a way of freeing up the capital asset that you own, but which is ‘locked up’ in your home. For example, if your home is worth ?200,000 you might like to have that money to enhance your lifestyle rather than leave it where it is in bricks and mortar.
Q. I’ve got a mortgage on my home. Does that mean I can’t release the equity?
A. No. If you have a mortgage, Property Rescue will arrange for your mortgage to be paid, in full, on your behalf when the equity release takes place. This means that you will receive the full amount offered for your home, less the amount of your mortgage. For example, on a home that is worth ?170,000 with an outstanding mortgage of ?50,000, you would receive ?120,000. Of course, this assumes that your lender doesn’t charge any penalties for early settlement of your mortgage.
Q. Why has equity release become so popular?
A. The increase in property values in the UK has led a lot of people to look at the way they live when compared with the value of their home. They may feel quite wealthy when they consider that their home is worth, say, ?300,000, but in effect that ‘wealth’ is not available to them unless they can release it. That’s where Property Rescue comes in – they offer a way of making use of the value of your home without having to move house or downsize.
Q. Isn’t equity release only for the over 60s?
A. It’s true that some equity release schemes are targeted at the retired and some of those have come in for criticism as being complicated and poor value. Property Rescue’s scheme is open to everyone, no matter what their age. The only qualifying criteria is that you own the home in which you live (either with or without a mortgage on it). Property Rescue explain clearly what you will get for your home and there are no hidden extras for you settle when the equity release is complete.
Q. Who takes care of the valuation of my property?
A. Property Rescue will arrange for a valuation of your home to be carried out. The costs of this are borne by Property Rescue and you do not have to pay towards it. However, if you wish to arrange an independent valuation of your home you are free to do that, but you will have to pay the cost yourself.
Q. My home is in need of a lot of repair work. Does that exclude me from equity release?
A. No. Property Rescue will consider any type of property no matter what its condition or location.
Q. Are there restrictions on what I can do with the money I raise from equity release?
A. Absolutely not! Once the money from your equity release is in your bank account it is entirely up to you what you do with it. You might like to buy a new car, have a well deserved holiday or help your children out with university fees. At Property Rescue we strongly advise you to put some of the money into an interest earning account so that you have money to pay rent and a future ‘nest egg’ should you need it.
Q. If I arrange equity release through Property Rescue, who owns my home?
A. After the equity release has been finalised, ownership of your home passes to Property Rescue and a rent is set before any transaction takes place so that you know exactly what you will have to pay. You remain living in your home and have all the rights that any tenant has. Everything is arranged with discretion: no salesmen call on you and if you decide after your initial contact not to go ahead, no pressure will be put on you to do otherwise. Your friends and neighbours need not even know what has happened.
Q. Who arranges and pays for all the legal work?
A. Property Rescue take care of the legal necessities through their network of solicitors, and these fees are free of charge to you. You don’t need to do anything except sign the relevant paperwork. Everything will be explained to you clearly before you make your decision.
Q. I like the sound of releasing equity in my home but I want to find out more. What do I do now?
A. For an informal discussion about equity release, contact Property Rescue. You can rely on complete confidentiality both initially and, should you decide to proceed, during the transaction itself. Advice is free of charge and there is no obligation on you to proceed if you decide not to. Give Property Rescue a call to find out how simple equity release can be.
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.