If you’re 55+ and have been eyeing up your dream home but aren't sure how you'll be able to afford it. Equity Release could help you purchase a new home! From a fresh space to live to a holiday retreat. We delve into how to use Equity Release to buy a new property.
Say you have an existing mortgage that you would like to pay off. You can clear your outstanding costs rather than borrowing more. Avoid committing to larger monthly payments. And even receive additional funds to purchase your new property!
The property sale, mortgage repayment, and new property purchase are all finalised together. Cash from your current property and the equity you release from the new home will give you enough to purchase your new home. Without having to make any monthly payments if you don't want to.
Other options to consider include paying all or some of the interest off. Either with regular monthly payments or ad-hoc voluntary payments. Our advisers can discuss payment options for the best plan available.
Once you have found the property you wish to buy. You sell your old property. Clear the mortgage, and move into your new home. Your new home will have the Equity Release mortgage on it. The process is similar to a regular property purchase. But you'll have a new home without monthly mortgage payments and not based on your affordability.
Let us help you achieve your dream of owning a holiday home. Either in the UK or abroad. Releasing equity from your primary residence can help. Allowing you to split time between your main home and your holiday home. Six months in each! You may want to purchase the property outright. So there is no additional standard mortgage requirement.
If purchasing a holiday home in the UK, remember stamp duty. Depending on the value of your second home. More information on stamp duty for second homes is here: hoa.org.uk/advice/guides-for-homeowners/i-am-buying/stamp-duty-for-second-homes/
Regular changes and updates mean more options are available. Even if you have been refused Equity Release in the past.
Why not see if you can release equity today? If you have further questions, speak with one of our qualified advisers. Hit reply-to to chat instantly
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This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
Reference: https://www.moneyrelease.co.uk/Equity-Release-To-Purchase-Property/