If you originally sold 40% of your property to a provider, then they’ll retain 40% of the sale proceeds when the house is sold. We can't predict the future value of your property or predict the long-term cost associated with this plan. Property prices could be higher or lower than they are today.
The amount you can borrow depends on the value of your property, the percentage of the property sold, your age and health. The older you are when you start the plan the more you will usually receive for the share of your property sold.
As you're selling a fixed percentage of your property, whatever you retain will be passed onto your estate. However as property prices rise and fall, we can't predict the future value of your property when it's eventually sold, so we can’t predict what inheritance will be available. Some providers offer an inheritance protection facility which allow clients to protect a specific percentage of the property’s future value. Your advisor will discuss this option if protecting an inheritance is one of your priorities.
There are four main costs associated with equity release. 1. Advice fee At StepChange Financial Solutions we don't charge any advice fees. 2. Valuation fee This is payable when you submit your application and usually depends on the estimated value of your property. 3. Legal fee We recommend that you agree a fixed fee with your solicitor once your equity release offer is confirmed. Typical legal fees range between £400 and £500. If you’re purchasing a property, or the legal position of your property is not straightforward, additional costs may apply. 4. Application fee Some lenders may charge an application fee. Where this is the case it typically costs £695.
All plans that meet the standards of the Equity Release Council: guarantee lifetime tenancy in your property can be transferred to a new property, subject to the approval of the plan provider Providing you maintain your home to a reasonable standard and fulfil the terms of the agreement,