With the current economic times and many people seeking for ways of handling financial problems, the need for an independent financial adviser is crucial and mandatory for people of all ages. This is the reason why the elderly are advised on several ways of taking care of their financial problems, which makes it easier for someone in retirement to make sure they are making the right decisions on their future. Perhaps seeking a female equity release adviser is the right move for you. This is down to personal preference and one which for many may offer that peace of mind & relaxation in making their final decision.
If you are looking forward to a stress free time during your old age, then you need to make sure you seek to know if you could be eligible for an advisor. However, you will need to find a qualified and experienced female equity release adviser to help you in choosing the best equity release plan to use if this proves to be the best course of action for you. Although there are many people and companies offering female financial advice, only a selected few are available to offer this type of equity release advice to the elderly.
As brutal as it might sound, most elderly people love being attended to by women, as they consider them to be caring, sympathetic and generally more knowledgeable. Persons in old age love being taken care of, and guided in a gentle way. They require financial equity release advice to be provided by defining facts in simple terms for them to understand. This is the reason why most of them will seek a female financial adviser who is able to offer guidance and support for them.
However, if you are looking for a female adviser, then you need to seek a person who is knowledgeable, qualified and ready to help you find what you are looking for. A well experienced equity adviser will define the advantages of using equity release for your old age, and also make sure you make the correct decision, for the correct reasons. She must also have access to the best equity release deals as otherwise the long term effect of not obtaining a good deal would cost your dearly.
Advantages of Equity Release for Retirement
Many advantages do come with using the best equity release plans for your old age. The first advantage you will get from this is that, you will have a fixed interest rate for the whole of your retirement years, which means you will know the future balance of your plan. The tax free lump sum generated can be used for several expenditures such as a regular flow of income as if you were working and earning. It also provides and gives you tax free lump sum to carry out any debt consolidation exercises needed to tidy up your finances & make your overall household budget more affordable. This could be invaluable if you are struggling on your associated pensions.
Not Everything is an Advantage
Certainly every product in the world has some disadvantages. Some have more than others, which is why understanding the product you are interested in is going to matter. For equity release you have several advantages, but only a few disadvantages:
1. Limited by age & property value on the amount of equity released
2. Interest accrual means the balance will increase over time
3. Inheritance issues due to the roll-up nature of the compounding interest
4. Eventual sale of home must be completed within 12 months of departure
It is not possible to remove the entire equity of your home in a lifetime mortgage. Most companies will go upto a maximum equity release loan-to-value percentage of 52-55%. The factors which will determine the allocated LTV would be based on the age of the youngest homeowner & the value of the property. In some cases now health can also play a major factor in determining the maximum payout as ill-health means potential shorter life expectancy, which will result in a shorter equity release term. Lenders can therefore gamble on providing a higher amount than otherwise have been on a person in good health as the roll-up period will possibly be shorter.
The worry is that interest will accrue and wipe out the rest of the unused equity. There is also worry of devaluation that could create a negative equity situation with or without interest charges. However, with the protection imposed by the no negative equity guarantee at least equity release planholders cannot leave a debt over and above the house to their children.
The sale of the home is usually the method of repayment for equity release schemes and this will usually occur upon the death or moving into long term care of the last surviving partner. However, if the children wish to retain ownership of the property, maybe for investment purposes such as buy-to-let which can generate them an income, they would need to pay off the equity release balance from their own funds. This could effectively be managed by taking out a mortgage in their own name which can be simultaneously completed upon transfer into their own name.
There are many considerations needed before taking a release of equity from your property. Home equity plans need independent advice to be provided & at the end of the day the best rates & offers found. Its therefore not only important to find a female equity release adviser, but also the products they can bring to the table.