How much can be borrowed from an Enhanced Lifetime Mortgage is an open question and is all dependent on your lifestyle questionnaire. The difference between a standard release mortgage and an enhanced one is substantial and the tax free lump sum threshold increases with a more severe history of medical problems.
Here’s a typical example of the difference between a standard lifetime mortgage release and an enhanced mortgage release:
- Standard Lifetime Mortgage: £250,000 property value means a standard release would warrant a tax free lump sum of £75,000
- Enhanced Lifetime Mortgage: £250,000 property value, how much can be borrowed hikes to £123.750. That’s a whopping £48,750 extra before tax liabilities kick-in
The examples above show that borrowing from the equity in your property is beneficial from the completion of your lifestyle questionnaire and how worthwhile it is using an independent specialist advisor to explore your medical history thoroughly to produce the best amount you can borrow on a lifetime enhanced mortgage.
It is the area that many people want to avoid, talking about their own mortality. It’s clear to see that there are huge tax benefits from meeting the extensive criteria that are in place for conditions which meet the enhanced lifetime mortgage plans that are available. Lifetime mortgage providers are looking to loan you increased amounts of money based on the value of your property in order to provide you with income for the rest of your life. How much you can borrow very much depends on your medical history and your lifestyle and any detail which you may think is not necessary could mean that you’re missing out on the tax benefits that are in place and increasing the amount of how much can borrow overall.
It’s a simple yet effective formula. The more your health and lifestyle has been affected, the more open and honest you should be about this. How much you can borrow is truly determined on the answers you submit on your lifestyle questionnaire. Leaving out vital information could cost you substantial amounts of money both in tax and from being able to enjoy the remainder of your life. Your tax free lump sum allowance on an enhanced lifetime mortgage plan is much higher and this time of your life is when you need to be the most tax-efficient you can possibly be to prevent the tax-man from getting his greedy hands on your assets once you die.
Speaking with an independent financial advisor is going to the best move you could possibly make to enable yourself to gain the best amount on your biggest solid asset. Liquidising your biggest asset and discussing your health may be difficult decisions for you to talk about but to make the best of the years you have left means being open and upfront about your medical history. Being tax-efficient now, means your family will suffer less in the long-run and how much you can borrow is determined by your lifestyle questionnaire.
You have to allow your financial advisor a deeper insight into your history to increase the amount you can borrow against the value of your largest asset. You’ve worked hard all of your life to pay for your home, now is the time to enjoy the labours of those hard-working years.
How much you can borrow is determined by that all important lifestyle questionnaire. Make the best use of what is on offer to you from an enhanced lifetime mortgage plan and bring home the years of your hard-earned money to make life easier for you now.