Costs

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Costs of Equity Release Schemes

Take into consideration that when entering into any type of equity release scheme there will be set-up costs and ongoing costs which can include:

  1. Arrangement Fees payable to the lender
  2. Legal Fees
  3. Valuation Fees
  4. Maintenance costs - you are still responsible for the maintenance of the property
  5. Insurance costs - maintaining adequate building insurance
  6. Loss of income, such as reduced eligibility for means-tested benefits
  7. Broker Fee’s

Warning Text

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EQUITY RELEASE (INCLUDING LIFETIME MORTGAGES AND HOME REVERSION PLANS) WILL REDUCE THE VALUE OF YOUR ESTATE AND CAN AFFECT YOUR ELIGIBILITY FOR MEANS TESTED BENEFITS.

LIFETIME MORTGAGES A LIFETIME MORTGAGE WILL REDUCE THE VALUE OF YOUR ESTATE AND MAY AFFECT YOUR ENTITLEMENT TO MEANS-TESTED BENEFITS AND TAX STATUS. THE IMPACT OF NOT SERVICING MONTHLY INTEREST PAYMENTS ON A LIFETIME MORTGAGE IS THAT THE OUTSTANDING DEBT CAN GROW RAPIDLY, THUS REDUCING THE VALUE OF YOUR ESTATE. FOR EXAMPLE, IF THE INTEREST RATE WAS 7% A YEAR, A £50,000 LOAN WOULD DOUBLE TO £100,000 AFTER 10 YEARS ASSUMING NO REPAYMENTS ARE MADE. THIS IS AN EXAMPLE FOR ILLUSTRATIVE PURPOSES ONLY AND PERSONALISED ADVICE AND RECOMMENDATIONS SHOULD BE SOUGHT FROM A QUALIFIED PROFESSIONAL. YOU ARE STRONGLY ADVISED TO REGISTER A LASTING POWER OF ATTORNEY. THIS WILL ALLOW YOUR AFFAIRS TO BE MANAGED BY SOMEBODY ELSE IF YOUR MENTAL ABILITIES SIGNIFICANTLY DECLINE.

  • Think carefully before securing other debts against your property; your property may be repossessed if you do not keep up repayments on your mortgage. You will potentially pay more interest by consolidating if the loan is increased and the term is extended. Fees are only charged for Mortgages & Equity Release and not on other products. This firm usually charges a fee for Mortgage & Equity Release advice and the amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity. A typical fee amount is £295 for mortgage advice and £895 for Equity Release advice which is payable upon completion. Alternative Estates & Financial Services Limited, registered in England & Wales at 7 New Union Street, Coventry, CV1 2HN. Registered in England and Wales under reference 2460707.

    Alternative Estates & Financial Services Limited is an Appointed Representative of PRIMIS Mortgage Network, a trading name of TenetLime Ltd. TenetLime Ltd is authorised and regulated by the Financial Conduct Authority (www.FCA.org.uk) under no. 311266. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

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