What is an equity release calculator?
If you are considering an equity release scheme to provide you with an additional source of income, or capital lump sum during your retirement, one of the first things that you think about is the amount of money a mortgage scheme will provide you with. In most cases, having an indication of how much money you can release from your property will help you to decide whether or not equity release is the right option for you.
It is normally not easy to calculate the exact amount that you can release from your property in advance; however, with the use of an equity release calculator you can calculate an almost accurate amount. The equity release calculator is definitely an effective tool for anyone who wants to have an indication of how much they can expect.
How does the equity release calculator work?
The equity release calculator requires the input of two important pieces of information: your age and the value of your property.
You need to be 55 years or older in order to be eligible for equity release.
The older you are, the more money you can expect to receive from equity release providers.
If you are applying with your husband/wife, the age of whoever is youngest will be the age that will be worked with.
This is simply because that person has a longer life expectancy and will therefore remain in the property for a longer amount of time.
Value of Your Property
The higher the value of your property, the more money you will be able to release.
To find out the value of your property, you should have a valuation conducted by an independent surveyor.
Why is age an important factor?
You might be wondering why age is such an important factor and why you will not be able to use an equity release calculator and get an estimate if you are not willing to input your age. Age is important because equity release providers are taking a risk by giving you money while allowing you to remain in your property. Most equity release schemes are lifetime schemes which means that they are intact until you die or until you move into long term care. The longer “your lifetime” the more risks the equity provider has. Some of these risks involve:
The value of your property might decrease during the term of the scheme which means that the equity release provider might end up getting less for the property when it is sold at the end of the duration.
The condition of the house might also decrease. This will also result in the equity release provider getting less for the property when it is sold at the end of the duration.
Do you need to pay for the calculation?
The great thing about the equity release calculator is that one can be found on the website of almost every equity release providers and they can be used free of charge. You do not need to pay to use an equity release calculator. If you do come across a website that is requesting that you pay to use their equity release calculator to determine how much money you can release through an equity release scheme with them, you should be very careful. You should make sure that the equity release provider is reliable and trustworthy.
In addition to using an equity release calculator from a reliable and trustworthy provider, you also need to make sure that you use a calculator from websites that are constantly being updated with fresh and frequent content so that the results from the calculator can be as up to date and as accurate as possible. Equity release calculators are definitely easy to use. With just a few clicks, you get results that can change your life forever; however, if these results are inaccurate, they can negatively impact your life instead of positively impacting your life.
So if you are considering an equity release scheme, you should definitely look online for an equity release calculator and use it to get an estimate of the total amount that you can expect to release from your property. By doing so, you will be putting yourself in a position to make a decision faster and easier instead of having to wait until you speak to an equity release specialists who will then provide you with a quote which you would need to review to see if the offer is attractive. With the equity release calculator, you do not need to wait on a quote. You know immediately if the offer is attractive. In conclusion, if you are 55 years or older, equity release as well as life cover are definitely things that you should think about!!