Pat Cunningham Explaining Equity Release

Here is a summary of the 20 videos in this series available to view now in my Equity Release Video Library

Just click the links to view.

Who Is Pat Cunningham and Why Is He Explaining Equity Release ? https://www.youtube.com/watch?v=YiL3k4oH4Xk

What is Equity Release ?– July 2020 https://www.youtube.com/watch?v=jFbcAcMnQeo

Equity Release - What is Compound Interest in a Lifetime Mortgage ? - July 2020 https://www.youtube.com/watch?v=NdvdCrpMWUU

How do you qualify for Equity Release? - July 2020 https://www.youtube.com/watch?v=xRrtgbqDlqM

Equity Release Safeguards and Guarantees - July 2020 https://www.youtube.com/watch?v=MOKRDYlCE7E

Getting Permission from Occupants for Equity Release - July 2020 https://www.youtube.com/watch?v=sZbb1a5COg4

How Long Does It Take To Arrange Equity Release ? - July 2020 https://www.youtube.com/watch?v=vuJEoplJxRo

Equity Release Early Repayment Charges - July 2020 https://www.youtube.com/watch?v=RTtt9SI2VP0

What Happens with Equity Release when You Enter Long Term Care ? - July 2020 https://www.youtube.com/watch?v=p-8wey94Mco

What Happens with Equity Release when You Die ? - July 2020 https://www.youtube.com/watch?v=PRoNa3ZfAoE

Can You Still Move Home with Equity Release ? - July 2020 https://www.youtube.com/watch?v=gs-QVfyZiy4

Equity Release - How Much Can You Borrow ? - July 2020 https://www.youtube.com/watch?v=x8T2ktbUa2w

Equity Release - Home Reversion Plan - July 2020 https://www.youtube.com/watch?v=5FpIvdY8c0A

Equity Release - Retirement Interest Only Mortgage (RIO) - July 2020 https://www.youtube.com/watch?v=4TpXxrxeh9Y

Equity Release & The Importance of Making a Will - July 2020 https://www.youtube.com/watch?v=15qn0ADoomE

Equity Release - Lasting Power of Attorney - July 2020 https://www.youtube.com/watch?v=UTHubLMatrU

Equity Release – Inheritance Tax https://www.youtube.com/watch?v=VYFr7pCwqYE

5 Equity Release Myths Dispelled https://www.youtube.com/watch?v=aCTFo9iTu2o

10 Equity Release Reasons https://www.youtube.com/watch?v=yLx9X2HBxI0

Equity Release Explanations Conclusion https://www.youtube.com/watch?v=s_mVBmQaRgc

Equity Release Explanations Conclusion. This video Equity Release Explanations Conclusion is the final one in my series explaining Equity Release. I sum up all the points which I have discussed and...

Many people are considering Equity Release and would like to learn more about it. My Unbiased explanation of the concept will help in deciding whether it may be appropriate.
I am not selling anything, just explaining things, Warts and All.

www.explainingequityrelease.co.uk

Pat Cunningham CeMAP CeRER explaining Equity Release Pat Cunningham CeMAP CeRER explaining Equity Release in an unbiased fashion, warts and all, including the good bits and the bad bits.

Here's a video explaining my new You Tube Channel

Pat Cunningham explaining Equity Release Unbiased explanation of Equity Release by Pat Cunningham CeMAP, CeRER. A warts and all presentation including the good bits and the bad to allow you to under...

Can We Still Move Home In The Future ?

Having taken equity release does not mean that you are necessarily trapped in your property.

You can still Downsize or Upsize if you wish, with the permission of the lender.

Some lenders will require the initial mortgage plus accrued interest to be repaid on moving. This will obviously reduce the amount available for the new home.

Some lenders will allow the original arrangement to continue if there is enough equity in the new property.

Example

Bill and Laura have a Lifetime Mortgage which they took out five years ago at which time, their property was worth £150,000 and they borrowed the maximum amount allowed at that point, 20% – a total borrowing of £30,000.
Their property is now worth £200,000 and the mortgage debt has increased to £40,000. As they are now 5 years older, the maximum borrowing has increased to 24% of the property value, £48,000.

Subject to the lender’s terms and conditions, their options could be as follows;

They could move to a property of the same value

Because the accumulated debt of £40,000 is below the maximum loan to value for their age now (£48,000), the lender may allow them to move without repaying the debt. It may even be possible for them to increase their borrowing up to the maximum.

They could move to a property of lower value.

The lender will want to ensure the total mortgage debt on the new property does not exceed 24%| of the new property value, so they would be required to repay the difference between the two figures.
As an example, if the new property was valued at £150,000, the total mortgage available at 24% on it would be £36,000.
Because they owe £40,000, they would have to repay £4,000 to the lender from the proceeds of their sale. They would, however, benefit from the £46,000 profit remaining from the sale, once the mortgage figure had been reduced to £36,000.

They could move to a property of higher value.

As an example, they could move to a property valued at £250,000, the lender may not require repayment, because the debt of £40,000 is less than 24% of the new property’s value (£60,000). It might even be possible to increase their borrowing mortgage to £60,000 on the new property.
If the value of the property had risen slowly or even fallen, or the mortgage interest had rolled up at a higher rate, Bill and Laura might not be able to move. For example, if the property increased in value to £160,000, the maximum available to them (24%) would be £38,400 based on their age now.
It is doubtful that the lender would allow them to move because their current mortgage debt is £40,000 and, if a move were permitted, they would have to repay £1,600.
Taking into account the costs of moving and the lender’s charges for early redemption, it is unlikely that it would be a viable proposition financially.

Be sure, if you are considering Equity Release, that your Adviser explains these points to you.

View my video "Can You Still Move Home with Equity Release" https://www.youtube.com/watch?v=gs-QVfyZiy4

Any questions ?, call me on 01375 676578, leave a message and I'll call you back
Or please send me your question in a message

Can You Still Move Home with Equity Release ? - July 2020 This video Can You Still Move Home with Equity Release ? covers the situation when you may wish to downsize and move home as part of your estate planning or ...