Tag Archives: Enhanced Equity Release

Are you entitled to an Enhanced Equity Release Plan?

One of the most discussed financial topics these days is equity release. Most people are still unaware of equity release plans and their benefits; however, those who are aware of these plans are using them to their full advantage to fund their retirement. Equity release is your solution to having a comfortable life after retirement when your income sources will not be the same or as much as you were accustomed to before. Therefore, if you own a property and you are in retirement, you can use your property as an income source during your lifetime as a retiree.

There are two types of enhanced equity release plans: lifetime mortgages and home reversion. This article will focus mostly on the enhanced lifetime mortgage as this is the most common plan availed by customers and will try to highlight the details which can help you in finding out whether you are eligible or not for either.

Lifetime mortgages and enhanced lifetime mortgages may sound familiar but in reality they are two different plans. Actually, the lifetime mortgage is designed for those who own a property and may need the money to maybe maintain their standards of living, pay for bills etc. The enhanced lifetime mortgage is the same as a lifetime mortgage but it also enhances the payout for your business. This equity release scheme is a bit more generous and allows the user to avail more benefits as compared to the normal lifetime mortgage. This is indeed perfect for all those who are looking to borrow more money in order to meet their health care needs.

Well, in order to avail this enhanced equity release scheme you have to appear in front of a tribunal which will ask you various questions related to your health and lifestyle therefore it is important you should know about the questions beforehand so you can answer confidently. The most commonly asked questions are as follows. What is your weight? What is your height? If you smoke, which brand do you mostly use? They even ask you questions related to your eating habits, blood pressure and other details related to your lifestyle.

Your answers to these questions will determine whether or not you are eligible to receive the benefits of enhanced equity release. There are not many providers in the market who are offering enhanced equity release. You can check out their plans and choose the one which suits you the best.

What is the Maximum Equity Release I Can Borrow?

This will depend on the type of scheme you are applying for. For instance the maximum releases are usually available on the lifetime mortgage schemes such as the AVIVA lump sum max. For example a single male aged 65 can release a maximum amount of 30% of the property value on standard terms.

However, there are now three enhanced lifetime mortgage providers; Partnership, AVIVA & more2life. They will offer a higher release should answers from a health & lifestyle questionnaire be in your favour.

Therefore, if there are such issues with diabetes, heart attack, cancer, on medication or even a smoker, then a single male may qualify for an enhanced lifetime mortgage plan of upto 38.5%.

On a £200,000 property valuation this could mean an extra £17,000 tax free lump sum from the equity release company. So if you are looking for as much as possible the first port of call would be check medical history & see whether you qualify for the new enhanced equity release schemes.