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The basics - What to expect and the effect of options Lifetime Mortgages are the most commonly used form of equity release. It is likely that at some point in your financial history you will have had a mortgage, and by now it will either be paid of or will have a very small balance outstanding. "Instead of a loan that has a start date and a finish date, Lifetime Mortgages end when one of a number of specified events occur." | | Equity Release Lifetime Mortgages are a variation on the traditional mortgage theme and are called "Lifetime Mortgages" on the basis that unlike previous mortgages you may have had; Lifetime Mortgages do not normally have a specified term. Instead of a loan that has a start date and a finish date, Lifetime Mortgages end when one of a number of specified events occur. |
Standard events that will trigger the need to repay a Lifetime Mortgage are, Death. In the case of a joint Lifetime Mortgage this will be the death of the last applicant Vacation of the property to enter long term care. Again on joint Lifetime Mortgages it will be when the last applicant vacates the property. Selling the property. As with all mortgages, a Lifetime Mortgage is secured against the property. If you no longer own the property you can no longer have a mortgage on it. It is worth noting that most Lifetime Mortgages are often portable. Provided you move to a property that is acceptable security to the Lifetime Mortgage company and of equal or greater value, the Lifetime Mortgage can be transferred. In the event you move to a lower value property, some or all of the Lifetime Mortgage may need to be repaid.
Back to start of page What to expect and the effect of options. Have you ever visited a modern coffee shop, tried to buy a simple coffee only to be confronted with a never ending list of options? You will be aware we live in an age of sometime unlimited choice, Lifetime Mortgages are no different. Lifetime Mortgages options and features have evolved as everyone's needs are slightly different. Choice potentially allows more people, more of the time to find a solution that suits them. That aside if all you want is a black coffee, choice can be extremely frustrating! | | "Have you ever visited a modern coffee shop, tried to buy a simple coffee only to be confronted with a never ending list of options? You will be aware we live in an age of unlimited choice, Lifetime Mortgages are no different." |
Before looking at what different options exist, it's perhaps best to look at the basic similarities Lifetime Mortgages share. As a client you can expect, You will have to be of a minimum age which can be as low as 50, although most Lifetime Mortgage providers have a minimum age of 60. To enter into a Equity Release contract with the Lifetime Mortgage company, by means of a charge on your property. Be provided with a cash lump sum, income or flexible facility you can draw on when required. The right to remain in you home until your death, your vacating the property to go into long term residential care or your selling the property.
The Lifetime Mortgage Provider will expect To take first legal charge over your property in much the same way as any conventional mortgage provider. They will expect the property to be adequately maintained and insured. The Lifetime Mortgage provider can take appropriate action if it transpires this condition is not being met. They will expect to be notified of any individuals residing at the property who are not a party to the mortgage. As on most types of Equity Release the lender is only paid at the end of the contract rather than on a monthly basis. The cost in interest rate charged is often greater on a Lifetime Mortgage than that of a traditional mortgage as the provider has no known redemption date.
Back to start of page Although there may appear a to be a never ending selection of options, there are only two real areas with Equity Release where the choices you make will have a notable impact. The choice on how you receive any funds release i.e. lump sum, income or flexible drawdown facility. Please see our Getting the Money page Your choice of how the Lifetime Mortgage company is to be paid its interest/charges. Please see our Paying it Back page.
All other options are there to add an additional degree of usability. If you are considering Equity Release, please feel free to contact us for Independent Equity Release Advice. We are able to provide home appointments across the whole of West Sussex - Brighton, Hove, Haywards Heath & Crawley, East Sussex, Surrey - Croydon Sutton, Reigate, Redhill, South London - Wimbledon, Fulham, Chelsea and Hammersmith and Central London. Back to start of page "This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration."
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