Can You Reduce The Cost Of Setting Up An Equity Release Scheme?
If you are considering an equity release scheme it is important that you get the right one for you and your circumstances. In the setting up process you need to ensure you get the right information and this will come at a cost.
However, to help you save money and potentially get more from your equity release scheme there are a number of things you can do.
The four main costs attributed to setting up an equity release scheme are:
• Valuation fee
• Advisors fee
• Solicitors fees
• Lenders application fee
It is possible to save money on each of these, although this should never be done to compromise the quality of service.
Valuation Fee for an Equity Release Scheme
In order for an equity release broker to assess how much you can release they will first need a valuation your property. There is typically a cost involved in this but using a specialist broker like Age Partnership can sometimes afford you preferential deals.
Because Age Partnership searches the whole of the equity release schemes market they often find plans which offer no valuation fee.
Advisors Fees for an Equity Release Scheme
These will vary between equity release brokers. Some brokers will charge advisors fees up front so it might be better to consult equity release specialists who can provide a free initial service. Age Partnership’s initial advice is free and comes without obligation. You will only be charged a fee when you complete an equity release scheme deal.
Solicitors Fees for an Equity Release Scheme
This is an area where you will have a good opportunity to shop around and find the best solicitors for you and your budget.
Lenders Application Fee for Equity Release Schemes
This will vary depending on the equity release scheme you choose. Lifetime mortgages application fees will be fixed at a set price, varying between providers whereas you might find some home reversions don’t have any. This is because they are built into the full or partial transfer.
However, when looking around for an equity release scheme and provider, look out for deals that offer you cash back on a purchase which will reduce the net cost.
The key to all of these savings is to thoroughly do your research and shop around for the best deal.
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