Eligibility Criteria for Equity Release Schemes
The release of equity, i.e., the value, from your property may be an appropriate solution for your financial trouble after retirement. Whether you need money for a comfortable retired life or for a specific reason, like to pay for your son’s education, the amount you obtain from the equity release scheme may be of considerable use.
The first thing to find out is – do you qualify for such a scheme? Every requirement and circumstance is different; this is the reason you need to seek professional consultation to ascertain eligibility. The eligibility for the property equity release schemes depend on your age and property values.
You need to understand that not all equity release schemes are available for all age and property value combination. The availability of the schemes will depend on the specific circumstances you have. The value of the property may need to be more to release equity from it if you are younger.
Here are a few factors that may affect your eligibility for the equity release schemes.
The age criterion: In most cases, the applicant needs to be aged over 55 years to qualify for lifetime mortgage schemes. For home reversion plans, the applicant needs to be aged over 65 years. However, the age criterion varies from one financial service to another and you need to enquire about this before you apply for any particular scheme.
The property criterion: The property you own, and from which you plan to release equity, must be of a minimum value. This minimum value also differs from one financial service to another and you need to check this as well. In most cases, the property must be worth more than £50,000.
The location and construction of the property also affect your eligibility. Certain equity release schemes may be available only for properties at certain locations. Moreover, the property must be of a standard type and construction. The schemes may not be available for flats in a housing authority block, farms, and mobile homes and such others.
The joint ownership and occupancy of property: If you are married or in a civil partnership and you occupy the property with your spouse or civil partner, you may have to opt for a joint equity release scheme. To qualify for joint schemes, the age of the younger partner must be above the minimum age limit as per the policy guidelines.
You need to find out the details of the eligibility criteria before you apply for a scheme.
If you think that you are ready to release home equity and are eligible for it, the next task is to seek professional advice and guidance. Only a competent and certified financial adviser will be able to help you determine whether this is the right solution for your financial troubles.
You may be able to find detailed information about equity release and the schemes available in this regard from online resources. However, it is not a good idea to depend on them when making a decision. Only independent financial advice can help you assess your requirements and circumstances and understand your eligibility.
Author Bio
Sophia Webb is a financial adviser. She offers a brief description of the general eligibility criteria for property equity release.
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