Once a homeowner has met all of the necessary requirements and is approved for an equity release plan, there are a number of ways in which they can choose to put their money to good use. Funds can be released from up to five different properties which can offer you even more financial freedom than ever. If you intend on applying for an equity release against your second home, you should be aware of all of the advantages, disadvantages and prerequisites.
When you are planning on applying for an equity release plan against any additional property, you or one of the applicants will need to fulfil the set age requirements. Additionally, the property may also need to have a certain minimum value. If your property is not of a high enough value, the equity release provider will not be able to offer you any kind of substantial lump sum. In addition, if you are applying against an additional property, you should not be residing in that property.
These are just a handful of the set criteria that homeowners need to fulfil, and if you wish to release equity from multiple properties, each property will need to fulfil these requirements individually. The amount of funds you will be able to release from your second home and any other properties will largely depend on a number of factors. These include, but are not limited to, your age and the value of the property. The greater the value of the property, the larger the amount you can release. Likewise, the older the homeowner, the greater the amount you can release.
If you would like to gain a more informed understanding of the amount of money you will be able to release against your second home, you can use an online equity release calculator. These calculators will give you a very good idea of what to expect before meeting with any professionals. Once you do decide to set up a meeting with an advisor, it is important to meet with an independent financial advisor. In fact, you should meet with more than one in order to gain as much information before signing on the dotted line. Independent financial advisors are best since they do not have any ties to financial institutions that may sway their advice. They will be unbiased and offer neutral advice on various products from various equity release providers. Once you have all of the offers and terms presented to you, you can make the choice that best suits your personal needs.
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