Equity Release Provides Significant Capital In Retirement

Looking for the maximum equity release? Then look no further.

Are you facing a financial dilemma in retirement? Whether its debt consolidation, making a gift to children or purchasing that luxury item; then equity release could be the solution for you.

But can equity release provide enough for your requirements?

Specialists like Equity Release Supermarket would only recommend a release amount that would be tailored to your exact requirements, whether it's just for your immediate need, or immediate & future needs.
However, there are times when only the maximum equity release will be sufficient to meet ones objectives. Here we discuss how the maximum release can be calculated to favor your own personal circumstances.

Equity release schemes are designed for homeowners over 55 who want to improve their financial position. One of the best features of equity release is that it provides tax-free cash which can be spent in many different ways. You can receive the cash in a single lump sum or monthly income format.

Due to the depth of the equity release market & its many features, this article will concentrate on the lifetime mortgage maximum lump sum benefit.

So how much money can you release?

If you have decided to opt for equity release and you want to know the amount of money which you can release against your home then you can use an online equity release calculator such as the Equity Release Supermarket calculator. You have to enter the following details into the equity release calculator: -

Value of your property
Age of the youngest applicant
Whether any mortgage or secured loan exists

The maximum equity release figure provided by this calculator is based on healthy applicants.

However, there are two further scenarios that could provide an alternative answer to this maximum: -

1. If there is only a single applicant
2. Any current or previous ill-health conditions exist

The first consideration in calculating the alternative maximum equity release is if the applicant is applying on their own & healthy.
In this situation there is new equity release provider - New Life Mortgages that can offer a higher maximum equity release, should the circumstances dictate.

As stated this would be prevalent on a single life only scenario.
In this example a single male, aged 65 with a property valuation of £250,000 could raise a maximum of £75,000 (30% of the property value).

The second alternative to calculating the maximum release would be if a history of poor health existed which could include - heart attack, blood pressure, diabetes, smoker etc then you could qualify for an impaired equity release plan.

As with impaired life annuities, equity release schemes also attract favorable terms, should the same kind of illnesses persist. As life expectancy is deemed to be reduced, due to health, then certain equity release lenders such as more2life can offer a greater lump sum than the standard schemes. Therefore should the maximum release be required then the health question must always be asked by your equity release adviser.

This additional amount can be very significant. In the aforementioned example of the 65 year old single male with a poor health record & a property value of £250,000, could now raise a maximum of £82,500 (33% of the property value).

Therefore, just by taking into account the medical history could result in an extra £7,500 lump sum, which could make all the difference between meeting one's objectives or not.