An equity release plan is an enormous decision. Maximum equity release schemes are available and you will want to make sure you’re able to secure the very highest amount you will be able to raise.
You might feel healthy and able to manage your life quite well without the need to be thinking about long-term care. However, taking into consideration all aspects of your health is vital to ensure you receive the best rates.
You may well have recovered from a cancer operation and you could be on medication for the rest of your life. Maximum equity release schemes will assess all of your health needs and you should be prepared to explore every opportunity in order to maximise the equity in your home for the best return. Particularly in the current climate when the rates are at an all-time low.
In order to maximise a return, the lender will issue a questionnaire which will be assessed by an actuary who will base your life expectancy on the provided information on the questionnaire. It is important that you fill in every question otherwise you could end up with a reduced amount of return in your plan. If you have smoked or are currently a smoker then fill in honestly to maximise your plan.
If you are taking heart medication for a previous heart attack, then fill this in, too. You might be having good results from your heart consultant during regular checks, but your life expectancy is reduced because you have had a previous heart attack. If you are taking medication for a cancer that has now been removed, you should still enter this on the questionnaire. Omitting any information will reduce the amount the lender will offer you.
Based on the information on the questionnaire provided by you, the actuary can establish your life expectancy and you may be able to borrow more money initially to tidy up your finances. Maximum equity release schemes are on offer for a purpose. If you still have an existing mortgage on the property you may be required to pay off the mortgage with the lump sum from the equity release plan.
Reducing your monthly commitments will lead to an easier existence as you reach your twilight years. Finding the best return on the equity in your home is in your best interests as you begin a new chapter in your life. Once life expectancy has been established by the actuary – based on the information you have provided on the questionnaire – providing you have given every aspect of your health, you will then be able to assess the amount the lender is prepared to offer you.
You know your health better than anybody else and you can only get the maximum from your equity release plan if you detail absolutely everything. Missing out information could eventually cost you and your family ultimately. Detail everything about your medical history, even if you don’t now consider it a problem. This is about securing your home’s equity for a valid income for your retirement and to increase the quality of your life. Make your home work for you and make sure any health problems, whether current or historical, are documented thoroughly to ensure the best return.
Maximum equity release schemes are there to be used, don’t be afraid to take full advantage of them. Thinking about life expectancy may not be your immediate or most pleasant thought, but it is something that could increase your income at a time when you need it the most. Ill-health may not be gratifying but maximising your income will make your life a more pleasurable experience with some extra money for your retirement.