With equity release, you may use the money to pay for the education of your kids, boost your income, or even upgrade your home. But many myths surround equity release claims. It’s important to get the facts right. At www.responsibleequityrelease.co.uk/ you will find more information about equity release. You will also learn some tips on how to claim the money and how much you can claim. Many people fail to claim equity release because of the fear that they may lose their property or get into more debt. We will highlight some of the myths associated with equity release and give you the facts. This way, you may claim your equity release without the fear of risking your assets.
(Top 5) Best Myths About Equity Release
Here are the top 5 myths about equity release,
It Increases the Family’s Debt
Parents usually worry that they may leave debt if the house price falls in the future. There is an equity release calculator that ensures that the value of your home does not fall below the market price. There is no possibility that when you move out of your home, it will not be sold at a value higher than what you owe the creditors. In the worst-case scenario, which is very rare, if the value of the property drops below the market value, any debt will be written off. Your kids or the beneficiary will not have to pay for debts owed.
Challenge in Inheritance
Most parents worry that by claiming the equity release, they may not be able to leave an inheritance to their kids. This is a major concern for many senior citizens. But it is not true. You may claim for equity release and live a better life during your old age. In the future, in case the property is sold, then the children get all the money that remains after the mortgage lenders claim their loan. You will still leave your children some inheritance.
Relocation is Impossible
You can still move house even after you make a claim for equity release. There may be some costs involved in the transfer. However, these are small issues that you can discuss with your provider. The most important consideration to make when moving house is to check on the type of property and its value. They should match your existing home.
There is No Regulation in the Equity Release Market
Research shows that this is the greatest fear that prevents many homeowners from making a claim for equity release. The Equity Release Council and Financial Conduct Authority regulate the equity release market. Their main responsibility is to ensure consumer protection from exploitation by providers and advisors.
Loss of Property
Many homeowners fear that they could lose their homes and property if they make a claim for equity release. If you have a lifetime mortgage, as per the regulations by the Equity Release Council, you legally own the home and can live in the home for as long as you want.
Making a decision to release equity in your home may be a hard task. However, when you consider your options, and you seek professional help, you will make the right decision.