All posts tagged Stonehaven

Searching for an equity release calculator for the under 55s is unfortunately not going to produce the results you hope for. Yet, many people do conduct a search online for this tool, which is one reason many websites and articles use the keyword to get your attention. There are some important facts you need to understand about equity release for retirees. The first is that equity release (ER) is for individuals over 55. Since it is a minimum age, there is not going to be a calculator that provides a calculation for an individual who is younger than this. One of the reasons the phrase is still used and targeted is because of planning.

People who want to plan for their retirement can find the calculator useful as they plan for their retirement day. The calculator can certainly provide some details that will help with the planning.

What ER Calculators Provide
As an equity release calculator for the under 55s does not exist, you will need to use a standard equity release mortgage calculator. It can still provide you with helpful information. You can also look for such options as the impaired equity release calculator that provides results for potential ill health issues. Impaired health allows you to gain a larger lump sum of tax-free cash than a healthier retiree. Of course, if you do not need a bigger sum of cash, it is best to stick with the standard ER. You also have calculators specifically for interest only lifetime mortgage products and home reversion.

An interest only lifetime mortgage provides you with a capital lump sum where you pay interest off each month to keep that sum the same throughout the life of the loan. Every lifetime mortgage will have interest and the entire amount is due at death or a move to a long term care facility. Basically, when you move from your home you need to pay it back. With interest only it is more affordable and leaves an inheritance behind if you pay off the interest, versus a loan that accrues until death, leaving a large sum to be repaid.

With appreciation and depreciation a home value can change and wipe out any inheritance if you have interest adding to the loan too.

Home reversion is different because it is a sale of all or part of your home. With the sale you still live rent free under a lifetime tenancy agreement, you can stay until death or until you decide to move to long term care, and only at the end is the rest of the house sold to the buyer. Any home left to sell is converted to cash for your beneficiaries. Buyers are investing in the appreciation of the home as a way to make their money.

ER calculators will be able to provide you with a potential maximum amount you can be lent, along with figures for what you may owe in the end. This gives you an idea of whether the option is affordable for you or not.

Possible Products
The market is flooded with products as more people begin to retire. Also changes to the regulations of these loans have meant a change in availability of certain products. The calculator uses the age of the person, plus the home value, to determine the maximum amount allowable. A loan to value percentage is the maximum amount for a specific age a person can obtain.

For example, Aviva is offering a product to 55 year olds where you receive 20.5% of your home value in an ER loan. Stonehaven’s Interest Select Max (interest only loan) provides 19% of the home value.

The older you are the higher your loan to value ratio will be on the assumption the loan will not be outstanding for as long. Thus, someone 65 years of age from Aviva can receive 30% of the home value in an ER. The Stonehaven ISM plan offers 29%. If you go with Aviva and are 65 years of age with a home value of £100K you would receive £30,000 in a maximum amount.

You should be aware that not all providers offer 55 year olds ERs. For example Just Retirement, LV=, New Life, and Pure Retirement require you to be 60 years old at least. This will change the calculations you receive from the ER calculator. As no equity release calculator for under 55s exists, just make certain you use an independent calculator that can provide accurate results for your situation.

Are you ready for all the good things that equity release has in store for you? It’s no surprise that many people over the age of 55 are focusing on the advantages of equity release. By definition, equity release is simply converting all or some of the equity in your home into cold, hard cash. Plenty of companies offer you an option for gaining cash like Stonehaven.

Stonehaven is a company that offers equity release possibilities for people who are over the age of 55. Only over 55’s can tap into what equity release schemes have to offer. So consider yourself lucky if you fall into this age bracket today. Stonehaven is pioneering because for the last 6 years it has been offering people over the age of 55 the chance to release equity with their award winning equity release company with a wide range of different schemes.

Sample a little bit of what these plans have to offer you by looking below:

Interest only lifetime mortgage: Stonehaven offers interest only lifetime mortgages. These are mortgages that allow you to get a cash lump sum where you are only paying the interest back and not racking up any extra debt on your account. Hence, it is unlike a roll-up lifetime mortgage (see below). Consider an interest only lifetime mortgage if you want the amount you are paying every month to stay the same instead of going up and down depending on what is going on in current affairs.

Fixed Interest Rate for life: Stonehaven’s plans offer a rate which is fixed for the rest of your life, leaving you safe in the knowledge of exactly knowing your monthly repayments. This allows one to budget accordingly & plan how to spend the household surplus.

Roll-up equity release: This is the plan that has the quirky name. A roll-up equity release plan is essentially a way for the interest you have on your mortgage to be rolled up in your equity release and you pay it within the loan. The money that you get from the roll-up equity release is basically tax-free so you can use it any way that you want. What happens with roll-up equity release is it stays as a debt so when you die, your family will not be burdened with a massive cut from HM Revenue when it comes to inheritance tax.

As mentioned, Stonehaven is not the only company offering lifetime equity release mortgages. You may find that another option is more affordable or better suited to your needs. Before deciding on one company always do your research. This is one of the top tips we can offer along with a few others.

Products with Advantages and Disadvantages
Whether you decide to choose an equity release from Stonehaven or another company there are going to be advantages and disadvantages of equity release schemes. You will want to decide if you are able to live with these or if you feel it is just too much for a little money.

Living without money especially enough to cover your bills in retirement is often too hard. You worked your whole life for a chance to relax. Taking advantage of products on the market that can offer you help is a good thing as long as you can live with the end result. Sometimes in life your younger family members need to live just as hard, so they can enjoy retirement rather than getting a helping hand from inheritance. If it is a matter of living with enough money to enjoy life in the end, then the potential removal of cash for use may be your best option.

As you search around for the best solution to fit your needs remember that drawdown, enhanced and home reversion are three other types of equity release products available to you on the market. They may fit your needs better than those at Stonehaven or not. Discuss all of this with a financial adviser to truly understand the full weight of your options and repayment needs.

Top tip: Read up on all of the thresholds for inheritance tax so you know how roll up equity release plans from Stonehaven affect you and your family in case you die. If you give out cash that is tax free now in small lump sums to your family it is not subject to inheritance tax. This could be a better benefit in the end. Also look at the benefits of interest only lifetime mortgages.