Important points Equity Release Calculator | NY Zone Exchange

Your family it’s an important point to start with Equity release calculator. While equity release plans can be a good way of cutting inheritance tax bills, they will also reduce what your family will inherit. While it should ultimately be your choice whether to sign up to an equity release schemes. If the property has been a family home for a long time, bear in mind that your children or other relatives may also have an emotional attachment to it. They may even have been thinking of living in the property after you die. Children or other relatives may be prepared to help you out financially instead of you taking out an equity release plan. They could then inherit the whole property. These schemes essentially allow you to borrow money against the value of your home, with the debt being repaid from the sale proceeds after your death.

If you receive means-tested state benefits, these could be reduced or lost altogether – which in turn could mean having to pay more for things like dental treatment and glasses. Check the rules before you take out an equity release plan. The equity release market is becoming more competitive. But interest rates on mortgage-based schemes, for example, are still noticeably higher than those on ordinary mortgages. Most equity release plans also involve paying valuation and legal fees, although these may be refunded assuming you go ahead. You remain responsible for repairing and insuring your home, and will still have to pay the council tax. Reversion companies in particular will expect you to maintain your home to a reasonable standard to protect their investment.