A primary concern for many considering Equity Release is whether they will eventually owe more money than their property is worth.
The ‘No Negative Equity’ guarantee means that no matter what happens to the market value of a property, an individual will never owe more than the value of their home and their beneficiaries would never have to meet the cost of the loan.
The majority of us will remember the recent recession and how this downturn in the property market leaves individuals in negative equity.
Equity release plans have a no negative equity guarantee which means that you can’t get into negative equity. In the unlikely event that the amount required to repay your mortgage ends up being more than the eventual value of your property upon sale, the loss is covered by the lender and there is no claim upon any other assets in your estate.
This ensures that subject to you meeting the plan conditions you will never leave a debt to your estate from taking out an equity release plan.
All equity release providers who are members of the Equity Release Council (formerly known as Safe Home Income Plans or SHIP) offer the same guarantee.
Call us now on 01204 884545 for more information on Equity Release Plans